THE Irish Meat Association has warned of a cut of 6p a lb in the price it will pay to farmers for cattle from next week because of cuts in EU export refunds and the revaluation of the Green Pound.
The IMA, which represents the Irish meat plants, said last night that the cut of 7 per cent in EU export refunds earlier this week makes it 4p per lb less competitive in the world markets.
Mr John Smith of the IMA said the expected revaluation of the Green Pound from tonight would reduce competitiveness by another 2p per lb from Tuesday.
"People buying cattle for factories next week will have to bear this in mind and it will, 1 think, lead to a reduction in cattle prices," he said.
Mr Smith said the cut in export refunds was particularly difficult for the industry which is now selling 75 per cent of the bullocks it processes into non-EU markets.
This, he said, would affect the performance of companies selling to Russia, the Republic's largest beef market, which is open to Argentinian exporters who had been banned for the last three years.