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Taoiseach Leo Varadkar has defended the right of beef factories to make a profit from the industry.
Responding to a request from Independent TD Danny Healy-Rae to intervene in the factory trade to improve beef prices, An Taoiseach replied: “I appreciate that farmers want a decent price for the work they do, but at the same time factories need to make a profit and we also must ensure that consumers pay a reasonable price for their food.”
Farmers are not being paid properly
The response was made in the Dáil on 14 November, after Healy-Rae said that “farmers are not being paid properly for the produce and their income is suffering”.
He also made accusations of a factory monopoly-hold which affected prices paid to farmers.
However, Varadkar questioned the idea of a monopoly.
“I am not sure it is correct to say that there is a monopoly,” Varadkar said.
“The Competition and Consumer Protection Commission has examined allegations of a monopoly operating among the beef factories.”
€4/kg
This week, IFA president Joe Healy met with Meat Industry Ireland (MII) and impressed upon them the need for factories to increase the beef price to at least €4/kg.
He cited rising anger among farmers and accused the factories of holding down the price to loss-making levels.
The IFA president also pointed out the price gap between prices in the UK and Ireland. In the UK, R3 grade steers are achieving £3.73/kg, the equivalent of €4.42/kg.
He said that meant the price gap between Irish and UK prices for equivalent grades had now widened by €200/head.
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