Beef Forum survives another round

The Beef Forum met and broke up last week with little definitive progress. Producer groups with the capacity to negotiate price and specifications was main topic tabled. They are unlikely to solve all the problems of the beef industry, but at least they create a forum where price can be addressed.

The price differential with Britain took up much of the discussion time. Getting the same price as British farmers might be optimistic, but it should not be unrealistic to aspire to the 10-year average differential of 27c/kg.

Exchange rate

This week in 2007, when the euro-sterling rate was approximately the same as now, the beef price gap with Britain was 21c/kg. Two weeks later it had closed to 2c/kg. Now it is €1.11/kg.

The success of the farming lobby in persuading British-based supermarkets to buy British is impressive, but it is clear that the denial of the opportunity for Irish cattle to go live to Britain or indeed Northern Ireland is no doubt a major part of our problem.

The IFA is claiming that it has ministerial endorsement for no dual-base pricing for steers or heifers in individual processing plants by breed, age, weight or quality assurance status under the Quality Payment System.

However, there seems to be differing interpretations of this, with Meat Industry Ireland, the factories trade association, on record as saying that the weights amnesty was in place until the end of this year only.

ICMSA pushed on the implications of an extra 80,000 Angus and Hereford calves coming into the system this year, and appears to have received assurances that there will be no reduction in bonuses paid for these.

Another outstanding issue that awaits implementation is the permanent scrutiny of trim in the factories. The IFA said it is happy that it has secured the Minister’s and Department’s commitment to implement this. They now need to get on with it.