The idea that retailers or processors are making a large margin on beef is not true, according to a UCD marketing professor.

Damien McLoughlin, Professor of Marketing at UCD Smurfit School said on RTÉ's Morning Ireland that there are no huge margins in beef being gained.

“Retailers don’t make money on beef. The average margin in the processor business over time is 0%. There is no international investment in processing in any country,” McLoughlin said.

McLoughlin said retailers use beef to drive footfall and that they did not make “a ton of money or a ton of profit on beef”.

Brands

McLoughlin continued: “There are no brands in beef. You go into any supermarket anywhere in the world there is no name on it other than the retailer's name." He added that "people will queue for cheap beef”.

McLoughlin believes the situation for beef would not get any better and there would be a shakeout post-Brexit.

Protests

McLoughlin's comments come as farmers continue to protest outside factory gates over low prices.

Speaking on the programme earlier, Beef Plan Movement co-chair Eamonn Corley said farmers are being driven off their land and that the pricing system for beef does not work for farmers.

“The retailer sets the price and the processor passes back a loss-making price to the farmer that is completely unsustainable,” he said.

Corley identified corporate greed as the cause of the problems in the beef industry and warned that the family farm will be replaced by factory farms.

Factories

Meat Industry Ireland senior director Cormac Healy accepted there was a poorer price for beef at present, but said it was as a result of challenging market conditions.

Healy said: “In August when you would expect the steak market to be strong and supporting the trade it’s far from doing that. Another big segment of the overall market, the manufacturing beef trade is under severe pressure at the moment.”

He said the Irish prices was “just about the EU average” and that efforts to return an improved price are there but there are no simple solutions.

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