Cattle farmers should get a fairer crack of the whip in their dealings with meat factories if the structural commitments in the Irish Beef Sector Agreement are put in place.
These are long-term changes and the list is lengthy. They have the backing of the Minister for Agriculture Michael Creed.
He spelled out the commitments in two documents, on 21 August and 15 September, after chairing negotiations.
Farmers have expressed fear that the increases in quality-assured (QA) bonuses would be eroded by cuts in base price.
In response, Bord Bia has outlined a beef market price index, something requested by IFA president Joe Healy.
The price index would operate like the milk price index produced each month for dairy farmers by Ornua.
When this index rises, dairy farmers demand a price rise for their milk and conversely, when it falls, they know a cut could be on the way.
A beef market index would similarly track prices for cattle and for beef cuts in Ireland’s main export markets.
It would allow cattle finishers judge if factory beef quotes are moving up and down in response to market changes, or not. The initial proposal from Bord Bia is to track three categories of prices:
A cattle price index would track upward and downward movement in prices being paid for Irish-type steers, heifers and young bulls in our key markets, eg the UK, France, Italy, Germany, Holland and Sweden. A beef market price index would track prices for Irish beef cuts in the same export markets, at wholesale and retail level as applies in each market.An offal price indicator would capture changes in the market values of offal and hides using daily data from the United States Department of Agriculture. The three components would be merged to give one weighted figure. The base year, perhaps 2020, would be set at 100. If markets strengthen, the index would rise over 100 and if markets weaken, it would fall below 100.
Enforcer role for new taskforce
Under the agreement, a new beef market taskforce would be set up to provide “a robust implementation structure for commitments … in this agreement, with timelines and stakeholder engagement”. It would be a host for engagement with retailers, regulatory authorities and others.
Other agreed commitments, demanded by the various farm organisations, include:
Independent review of customer requirements: do they really demand 30 months, four movements, long residency and QA?An independent study of the value/price of the animal, including the fifth quarter, along the supply chain. The factories have committed to providing data.Examination of competition law issues.Bord Bia to pursue funding for promotion/branding of Irish suckler beef in EU markets.Pursue protected geographical indication (PGI) label for Irish grass-fed beef.Consideration of an independent grocery regulator. Department to encourage producer organisations which can collectively negotiate prices.Teagasc to review the beef grid.Department to publish results of carcase classification inspections. Farmers to get access to carcase images.Minimum four months’ notice for change in weight limits.Written terms of sale for cattle.Opt out of factory insurance.Live weighing at lairage on request, for a charge. Residency requirement reduced to 60 days.Appeal system for manual grading.
Cattle farmers should get a fairer crack of the whip in their dealings with meat factories if the structural commitments in the Irish Beef Sector Agreement are put in place.
These are long-term changes and the list is lengthy. They have the backing of the Minister for Agriculture Michael Creed.
He spelled out the commitments in two documents, on 21 August and 15 September, after chairing negotiations.
Farmers have expressed fear that the increases in quality-assured (QA) bonuses would be eroded by cuts in base price.
In response, Bord Bia has outlined a beef market price index, something requested by IFA president Joe Healy.
The price index would operate like the milk price index produced each month for dairy farmers by Ornua.
When this index rises, dairy farmers demand a price rise for their milk and conversely, when it falls, they know a cut could be on the way.
A beef market index would similarly track prices for cattle and for beef cuts in Ireland’s main export markets.
It would allow cattle finishers judge if factory beef quotes are moving up and down in response to market changes, or not. The initial proposal from Bord Bia is to track three categories of prices:
A cattle price index would track upward and downward movement in prices being paid for Irish-type steers, heifers and young bulls in our key markets, eg the UK, France, Italy, Germany, Holland and Sweden. A beef market price index would track prices for Irish beef cuts in the same export markets, at wholesale and retail level as applies in each market.An offal price indicator would capture changes in the market values of offal and hides using daily data from the United States Department of Agriculture. The three components would be merged to give one weighted figure. The base year, perhaps 2020, would be set at 100. If markets strengthen, the index would rise over 100 and if markets weaken, it would fall below 100.
Enforcer role for new taskforce
Under the agreement, a new beef market taskforce would be set up to provide “a robust implementation structure for commitments … in this agreement, with timelines and stakeholder engagement”. It would be a host for engagement with retailers, regulatory authorities and others.
Other agreed commitments, demanded by the various farm organisations, include:
Independent review of customer requirements: do they really demand 30 months, four movements, long residency and QA?An independent study of the value/price of the animal, including the fifth quarter, along the supply chain. The factories have committed to providing data.Examination of competition law issues.Bord Bia to pursue funding for promotion/branding of Irish suckler beef in EU markets.Pursue protected geographical indication (PGI) label for Irish grass-fed beef.Consideration of an independent grocery regulator. Department to encourage producer organisations which can collectively negotiate prices.Teagasc to review the beef grid.Department to publish results of carcase classification inspections. Farmers to get access to carcase images.Minimum four months’ notice for change in weight limits.Written terms of sale for cattle.Opt out of factory insurance.Live weighing at lairage on request, for a charge. Residency requirement reduced to 60 days.Appeal system for manual grading. 
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