In the lead up to the Beef Forum last November, tension were high among farmers and processors with the Department of Agriculture acting as the peacemaker. A detailed roadmap was published with the aim of improving relations between farmers and processors as well as improving the overall beef sector. What, if anything, has changed?

Two of the key stakeholders in the forum have been asked for their views on what has progressed and what has not. The responses in many cases represent a robust restating of negotiating positions rather than a clear roadmap for farmers highlighting what has been achieved and what remains work in progress if that is the correct term.

The Irish Farmers Journal interviewed Henry Burns, chairman if the IFA National Livestock committee. He dealt with the points agreed at the 14 November Forum on a point by point basis as follows:

Price Transparency

· Good at farm level but poor from the market.

· Beef price app implemented.

· The R3 is agreed as the correct grade and accepted by all.

· Market index vital for price transparency but it is not in place yet.

· Some factories have a very clear and transparent remittance docket but others do not and need reviewed.

· Factory communication to farmers through their agents is continually negative on price.

Weight Specifications

· In general, this has been honoured but recent communications from the factories on weights is causing real farmer concern about the viability of the suckler herd.

· IFA’s view is very clear, weight limits would have a devastating impact on our quality suckler herd and completely undermine the QPS.

Age Specifications

· The Minister for Agriculture Simon Coveney has written to various third countries and IFA awaits the responses he has received on this critically important issue.

· Bord Bia has confirmed at the Forum that the majority of our retail and food service customers do not have an age issue.

· Regarding 30 months, we have a grazed grass based industry and our marketing must fit with our production systems.

Farm Movements

· Marts are a vital part of competition in our industry.

· There is still too much confusion amongst farmers around movements and residencies.

· Minister Coveney said changes to AIM should have happened by now.

QPS

· In general since the beef forum there has been no dual based pricing.

· Farmers have got used to working with the QPS which rewards quality on a scientific basis and we now need a period of stability.

· IFA made a genuine attempt have all QA cattle rewarded but so far factories have resisted. This was a missed opportunity on QA.

Contracts

· It was IFA’s ambition that contacts would help deliver some price stability for the ordinary farmer. However, with more cattle coming into the system farmers are finding it much harder to negotiate supply contracts this year.

Live Exports

· The Minister needs to do much more in on live exports particularly in opening international markets as we have 100000 extra cattle coming into the system

· The Minister and EU must guarantee that the single European market works properly and not allow labelling be used to frustrate trade.

Producer Organisations

· As well as Department and processor buy in, this initiative needs priming and investment to make it happen. It will take time.

Trim

· The Minister has made a very specific commitment that the Department AO’s will be commissioned to monitor carcase trim and grading on the kill line. This commitment must be delivered without further delay.

Bull Beef

· Bull beef is a vital component of a year round beef supply, and demonstrated to be successful by many in the Better Farm’s Programme.

Forum

· One year on, and a few months from a general election, it is critical for the Minister to insist on delivery of the key forum recommendations.

Meat Industry Ireland (MII) View

Speaking for MII, Joe Ryan began by pointing out the above average relative performance of the Irish beef price for much of this year, even thought that wasn’t the topic of debate, and has been less impressive for several weeks now. He also referenced the Foodwise 2025 document and subsequent meetings of the forum. On the specific issues in the November 14th 2014 agreement:

Market Analysis: “MII worked closely with Bord Bia to provide an in-depth analysis for the July 2015 Roundtable on the wide range and diversity of meat cuts as well as the different markets and market channels to which our 500,000 tonnes of Irish beef exports are sold. This demonstrated in particular that a single price comparison, with any one market, does not reflect the true extent of the market diversity.”

Weight: “The industry agreed to temporary concessions on carcase weight penalties until 31st December 2015. The argument was made at that time that insufficient notice was given to producers with regard to carcase weights. There has now been 14 months’ notice of this requirement. MII, on behalf of industry, has set out clear signals on market specifications. These have been reiterated by Bord Bia. The target specification for carcase weight is 280 - 380kg as these are best suited to the maximum range of markets and customers. Producers intending to produce heavier carcases should do so in conjunction with a processor to ensure that there is a market outlet and that they do not fall into a penalty situation.”

Age: “At the July 2015 Beef Roundtable meeting, Bord Bia confirmed that the 30 month age requirement is a key factor across many markets. It is also an essential part of retailer specifications across continental Europe, as well as in the UK and here at home. The clear trend amongst customers is towards lighter and younger animals. The 30 month age specification is also compatible with optimum efficiency and sustainability. It should also be noted that access to many international markets have only been achieved for beef from animals under 30 months.”

Cost-Neutral QA:“All stakeholders at the November ‘14 Roundtable agreed that the QA incentive was to be introduced on a cost-neutral basis. Through the Beef Roundtable secretariat, MII sought proposals from all stakeholders at that time on how best to implement this QA incentive on a cost-neutral basis, however no viable cost neutral proposals were received. Industryhonoured their Roundtable commitment and a €3 QA incentive was implemented from the 1st January 2015. It was repeatedly stated that this payment would not be sustainable unless it was funded on a cost-neutral basis, as originally agreed at the November ‘14 Roundtable”.

“MII believes that for the future success of the Beef Roundtable, it needs to be focused on dealing with some of the substantive issues facing our overall sector, while recognising that from time to time there will be some smaller, short-term issues to debate. They also referenced the need for “proper implementation of the Clean Livestock Policy”, warning of “the risk of E. coli cross-contamination from hide to carcase. If an E. coli incident arises and results in a major recall, or worse still, a public health incident, this will impact negatively on the full sector.”

Comment Box:

It is clear from the Irish Farmers Journal enquiries to the parties at the beef forum one year on that the processor and farmer representatives are travelling on parallel tracks rather than together on the same track. Events of last year demonstrated what happens when a trading relationship breaks down. The Irish beef industry doesn’t come out of it with its reputation improved and any damage to that reputation ultimately hurts the farmer. Farmers need to be willing to embrace change if Bord Bia can independently demonstrate the need and Teagasc demonstrate that is viable from a production perspective. Finally we need to recognise that it has taken four decades to build the genetic profile we have today in our suckler herd. If it is necessary and can be demonstrated to be done viably, it must be done in an orderly way with sufficient time to adapt without threats to farmers of penalties or deductions. Four decades of development does not require the same time to change or modify, but it requires years rather than months. That can only be achieved with proper engagement and discussion between the parties, not by simply restating positions. The next beef forum is scheduled for December where more of the topics will be discussed.

Beef forum one year on: What has changed?

A year on from the Beef Forum agreement on November 14 2014, the Irish Farmers Journal sought the views of two key stakeholders in the forum, Phelim O'Neill reports.