Intensive talks between farmers and beef processors to begin on prices

Farmers and beef processors have agreed to begin “intensive discussions” after a new initiative within the beef industry was announced last night.

Farmers called on factories to raise their prices for beef immediately.

The talks, involving farmers and processors as well as the Government and McDonald's and Tesco as two largest buyers, followed this week's farmer protests about the prices they receive for beef. They blockaded meat factories for 24 hours on Monday and Tuesday.

The Irish Farmers Association maintains farmers here are paid €350 less per head of cattle than in the UK and there is no reason for factories to withhold a price increase. Irish beef sales to the UK, which accounts for over half of exports, have risen by 20 per cent this year.

Minister for Agriculture Simon Coveney said last night's negotiations concluded with a sector-wide endorsement of potential "producer organisations" that would allow farmers to organise and negotiate prices. IFA president Eddie Downey said "farmers cannot continue to sell cattle at a loss". He said prices should be raised immediately.

Deteriorating relations

Mr Coveney said the general agreement on producer organisations was complemented by a deal between farmers and beef processors to enter into “intensive discussions”, on the back of deteriorating relations. A further meeting among stakeholders will be held in two weeks’ time.

In a statement, the Department of Agriculture said last night’s meeting had secured the approval of all involved for the formation of “farmer-owned producer organisations” which it said would “help to rebalance negotiating power”.

“I am delighted that all of the participants in the forum endorsed the establishment of producer organisations in the beef sector,” said Mr Coveney. “It is clear to me they represent the best opportunity to rebalance the relationship in the supply chain between producers and processors by empowering farmers to organise collectively for the purposes of negotiating on prices with processors.”

It is envisaged these organisations may influence other issues, including joint distribution, marketing and consensus on quality specification.

There are hopes new export opportunities may emerge. Mr Coveney intends to explore possibilities when he arrives in China this weekend with the largest agri-food delegation to visit the country. He said in tandem with other market openings – most recently in the Philippines and with US negotiations under way – this would make for the key elements in sustainable development of the beef sector.