Sir, - Much has been written in your newspaper during the past three weeks about BSE and the entire beef and food industry. However, it is sad that we haven't had to wait for the BSE debacle to get the Minister for Agriculture, the other farm organisations, our national decision makers and the national economy to concede the vital role of beef finishers to the beef industry.
Beef finishers, who are vital to the beef processing industry, have been on a slippery slope for the last 13 years. That slope has been at 89 for the last 3 1/2 years, since the introduction of CAP Reform. In fact, CAP Reform has created a farming community of haves and have nots.
The fundamental problem with beef finishers arose from a flaw in CAP Reform, not from BSE and not from a cut in export refunds.
CAP Reform gave security to every sector of mainstream farming, with the exception of those farmers involved in the store cattle and the beef finishing business. These farmers have no cows and, do not produce their own calves, and therefore they do not have and are not entitled to EU support in the form of premia and quotas. They must therefore buy their store cattle or raw material from other farmers in the marts. There are 40,000 such farmers in Ireland. The structure of Irish farming does not allow for all store cattle and beef finishers to be calf producers.
Most specialist beef finishers were on the way out of the business before the BSE crisis. Losses of £100 per steer and £160 per heifer were already being endured before the onset of BSE. An Intervention price of 92p will return a 1955 of close to £200 per animal for those finishers who, because they do not produce, their own calves, are not entitled to EU subsidies. Those who do produce their own calves, and can qualify for all the subsidies, are not losing money at 92p.
It is quite infuriating and depressing for finishers to observed the crocodile tears shed on their behalf by other farm organisations and the Minister for Agriculture, Food and Forestry, Mr Ivan Yates TD, who together have chosen to ignore the real needs of this sector for years. The omission from CAP Reform was highlighted to the Minister and the other farm organisations more than three years ago, and absolutely nothing has been done since by either to recognise the problem and to seek a solution to it.
What we are now witnessing is close to the genocide of Irish beef producers by EU regulation, and the acceptance of it jointly by Minister Ivan Yates and the other farm organisations. Talk about fiddling around with export refunds, interventions, prernia etc. will not solve the problem and it is no more, than crumbs from the rich man's table.
When the finishers have gone out of business, as most of them are certain to do, the store producer and the processors will miss them and BSE will be blamed. In truth, the worst we can say about BSE is that it was one more symptom of an Irish beef industry that we don't have. There always has to be a scape goat for those who bury their heads in the sand. This time it's BSE, the innocent victim.
Yours, etc.,
National secretary, Irish Cattle Traders' and Stockowners' Association,
Ballard,
Kilbeggan,