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ICSA: Farmers sick of “anti-competitive closed shop” in beef

Feb 5, 2014 | Press Releases | 0 comments

5th February, 2014

Irish Cattle and Sheep Farmers’ Association beef chairman Edmond Phelan has slammed the whole structure of beef processing in Ireland, which he has described as an “anti-competitive closed shop” that has left beef farmers with a very unstable outlook. He said that the extreme stress felt by family farms who are left holding bulls means that many will be likely to wind down their fattening operations in the coming years, with a knock on effect on the suckler herd.

Mr Phelan was especially critical of the anti-competitive element of Irish beef processing which he claims is totally controlled and dominated by just three big processors who are also dominating UK processing. He also pointed to the fact that beef processors are further undermining Irish farmers by using their own feedlots and contracted operators to ensure that price to farmers can be kept under control. “It is particularly ironic that in the international year of the family farm, supermarkets seem to be happy to have factory-run feedlots supply beef while family farms go under.”

Mr Phelan said that farmers were disillusioned with the beef quality assurance scheme. “Many bull beef producers are quality assured. But many are questioning the point of it, when they get no bonus and now, they can’t even get cattle killed. Farmers are openly contemplating withdrawing from quality assurance if they don’t see retailers and processors dealing with the crisis.”

Mr Phelan said that ICSA, as an association that gets no levy funding from factories, is demanding that both the factories and retailers come to the table to explain whether there is any point in maintaining the national suckler herd in its current format. “At present, the only future for suckler producers is live exports. But we don’t have sufficient markets for the live export of the progeny of over one million suckler cows. The signal seems to be that the suckler herd needs to fall by half. I’d like to hear from retailers and processors if there is any reason why this should not happen.”

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ICSA president Dermot Kelleher has said ICBF have gone too far with their changes to the beef breeding indexes regarding pedigree bulls. Commenting on the changes which came into effect this week Mr Kelleher said, “ICSA met with ICBF back in early November where we were reassured that no drastic changes would be made; this has turned out to be far from the case however. The changes are proving to have considerable ramifications for farmers participating in the SCEP scheme and indeed for the future of the suckler sector as a whole,” he said.

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