Aug 312012
 

 

ICMSA say beef price reduction an abuse of dominant position

 The cuts imposed by meats plants over recent weeks is simply the plants abusing their dominant position in the beef supply chain and has absolutely nothing to do with beef markets which continue to perform well, according to Mr. Michael Guinan, Chairperson of ICMSA’s Beef & Cattle Committee.

 “In the last number of weeks, factories have being playing a game with farmers by reducing quotes and making it difficult for farmers to get cattle killed. It is disgraceful that meats plants are simply taking advantage of the disastrous weather conditions over the last three months. Farmers are under enough pressure with weather related problems without having to deal with unjustified price cuts and meat processors should be showing solidarity with farmers at this time rather than taking advantage of them”, said Mr Guinan.

 The Beef and Cattle Committee Chairman pointed out that markets continue to perform well and he cited the evidence that beef prices are actually increasing in theUK, our main market and across the EU.  

 “Irelandis the only country that has experienced price reductions over the last few weeks so it is quite clear that meat plants are abusing their position. It should also be pointed out that beef prices in the UK are now over 60 cents per kg higher than the Irish price which is equivalent to about €200 per head on the average steer. With the costs facing farmers here inIrelandthis year due to the weather and also general input costs increases, price gaps such as the above simply cannot be carried by farmers and it is about time that meat plants walked the walk with farmers by paying the price that the market justifies. Meat plants can pay a higher price than currently is being paid and farmers collectively need to put the maximum pressure on them to do so immediately”, concluded Mr Guinan.

 Ends          29 August 2012.

 Michael Guinan, 086-8766851

Chairman, ICMSA Beef & Cattle Committee

 or

 Cathal MacCarthy, 087-6168758

ICMSA Press Office