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Farm organisations have criticised the control beef processors have over the beef price.
Speaking at an Oireachtas agriculture committee specifically aimed at discussing the future of the beef sector, the issue of competition or potentially lack thereof was raised.
A Department of Agriculture investigation into the issue of competition in the beef industry was called for by the IFA.
“The minister keeps telling us that he has nothing to do with price,” IFA livestock director Kevin Kinsella said.
“We feel differently and that there is an onus on the minister.”
Kinsella said it would answer the issue once and for all among farmers about whether a cartel existed in the beef industry.
Carcase grading
The ICMSA livestock chair Des Morrison highlighted that the automatic grading machine in factories only graded half the carcase.
“Farmers have lost all confidence in the grading machine that came in in 2011,” Morrison said.
“If both halves of the carcase were graded you could two different grades. If you’re one grade out you could be 12c/kg down.”
He s,aid that the same mistake did not have the potential to happen with manual grading.
Glanbia-Kepak cartel
The recent launch of the Glanbia-Kepak Twenty20 Club, which aims to deal with the issue of dairy beef, was welcomed by the Irish Natura and Hill Farmers Association (INHFA).
However, it sounded a note of caution that the powerful dairy and beef processing pairing could become part of what was termed the beef “cartel” during the committee.
The overwhelming sentiment from the committee was that beef prices were reaching crisis point, with the IFA analysis indicating that beef farmers had already lost over €100m as a result of the uncertainty caused by Brexit.
Fianna Fáil TD Jackie Cahill raised the issue of the fifth quarter and the fact that farmers are not benefiting from the sale of the fifth quarter to third countries by factories.
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