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The issue of cattle from factory-controlled feedlots being processed in factories was a key issue on the Today with Seán O’Rourke show on Thursday morning.
Dermot O’Brien, Kerry chair of the Beef Plan Movement and Cormac Healy, director of Meat Industry Ireland (MII) had differing views on the issue.
Speaking on the programme, O’Brien said that beef processors in Ireland have a monopoly on the market.
“We have many anti-competitive practices which help them to be dominant in the market place.
They have to accept that if cattle are being taken from feedlots there’s a control on supply
“One of the main things really is that a lot of cattle that are being sent to factories at the minute are coming from factory-controlled feedlots. That figure was up to 20% last year, it may even be more. So in a situation like that, farmers are price takers.
“They have to accept that if cattle are being taken from feedlots there’s a control on supply. So for example this morning there are many farmers throughout this country who have sheds full of finishing bulls, they’ve nowhere to go with them, they’re not been taken by the factories and if they are to be taken by the factories they have to take them at a certain price and that’s it.
“The Beef Plan Movement is trying to address this. We’re there to represent the ordinary beef farmers of Ireland.”
Moving on to the four-movement rule, O’Brien said that the rule is an anti-competitive practice and that the farmer has no freedom to go wherever he wants with that animal.
He said that as a result a lot of the rural marts are suffering.
Meat Industry Ireland
In response to O’Brien’s comments, director of Meat Industry Ireland Cormac Healy said that Ireland is five weeks away from a critical impact on the beef sector in Ireland and the entire agri-food sector, that’s where Meat Industry Ireland’s focus is at.
“The first thing I would say is in relation to the movement issue. The actual requirement is there, it’s part of a bonus system that individual processors will pay a bonus for meat that meets particular market specifications. The four-residencies rule as we describe it… is there because customers in the UK, in Europe require these provisions.
It’s a pity that today, five weeks out from a critical Brexit issue for the sector, we are talking about something that was introduced 10 years ago, was highly communicated and published
“It was something that was introduced 10 years ago and it’s a pity that today, five weeks out from a critical Brexit issue for the sector, we are talking about something that was introduced 10 years ago, was highly communicated and published.
"The point in relation to it is that over 85% of animals meet the criteria anyway. This is not something that is excluding and it is voluntary.
“In relation to the feedlots, again the information is misleading. I think Dermot referred to 20%. Our best understanding in relation to cattle that are processed by Irish meat processors is that less than 5% of those come from feedlots that are owned by the companies themselves, so it’s quite a small percentage of the overall mix. They have that there for security of supply at particular times of the year.
“The figure of 20% is inaccurate. It refers to a lot of herds out there that have feedlot status as the Department of Agriculture would describe it, purely to facilitate their own trading arrangements in terms of buying in and selling animals if they are restricted because of TB.
“These animals are principally fed on silage. A feedlot status can be to a herd where animals are out grazing as well. The figures that are being talked about are misleading,” he said.
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