A REPORT on alleged price fixing in the beef processing industry is expected from the Competition Authority within weeks, official sources have indicated.
Following months of disagreement between the Minister for Agriculture and meat processors over falling beef prices for farmers, Mr Yates has written to the authority asking it to investigate what he refers to as "concerted practices" in the cattle trade.
His move has been welcomed by farmers but denounced by the Irish Meat Association, which represents the processors. Mr John Smith, chief executive of the IMA, said there was plenty of competition in the meat industry.
Although most beef under investigation is intended for export to third countries, a ministerial spokesman indicated there was some scope" for price reduction in butchers' shops here if the authority decides a cartel is in operation.
The spokesman described the investigation as unprecedented" and said the Minister was "at the end of his tether" over beef prices. However, some farmers believe privately that Mr Yates could have dealt with the matter in his own Department and claim the decision to call in the authority is a preelection "stunt".
Since the beginning of the year, the price paid by the factories for cattle has fallen by £100 a head, bringing it to a 10 year low.
The start of the BCE crisis more than a year ago put an end to live cattle exports virtually everywhere, leaving the Irish processors with a monopoly over the home market. The IFA has repeatedly accused the factories of abusing their dominant position.
In his letter Mr Yates asked the authority to investigate why processors recently cut prices when export refunds were reduced, even though some of them were not affected by the cut because they had "prefixed" arrangements stipulating higher refunds.
Mr Yates has also queried a charge of. £3 a head the factories have introduced for the disposal of offal, in spite of the fact that the price of disposal varies from plant to plant.
