The protest took place in the Aldi supermarket in Tullamore, where Healy and livestock committee chair Angus Woods pointed out the high-value steak cuts being marketed for €25 to €35/kg.
“The producer needs a bigger chunk of the retail price,” Healy said, lamenting the recent quotes of €3.70/kg offered to some farmers.
“The IFA will do whatever it takes to get a better return for the producer,” he continued. The crowd cheered every sentence.
“Since 1 May, factories have cut prices to Irish farmers by 35c/kg, from €4.10 back to their current quoted base price of €3.75/kg, forcing farmers into a loss-making situation. Over the same period, prices in our main export market in the UK have risen by the equivalent of 50c/kg. UK beef prices are currently £3.60/kg and at the current exchange rate of 85p=€1, this is equivalent to €4.48/kg including VAT.”
Healy wants to send a message to Irish beef factories #IFA pic.twitter.com/oCoclTTIii
— FJ Beef (@FJBeef) September 14, 2016
Healy said these price cuts are totally unjustified and not based on market returns.
Average Irish retail price for beef
The IFA president also pointed out that with average Irish retail price for beef at €8.92/kg, retailers and processors have plenty of margin to pay producers a sustainable beef price in the range of €4.00/kg to €4.50/kg, which Teagasc has stated is necessary for cattle produced off grass and for winter finishers.
There is no transparency on the profits of the major players in the industry or the money taken out of the price chain at each stage
Healy said the beef price paid to the farmer is totally transparent and the lack of margin at farm level is there for everybody to see.
However, he said there is no transparency on the profits of the major players in the industry or the money taken out of the price chain at each stage. “The failure to regulate the retailers and processors in the food chain is allowing them to drive prices to unsustainable levels. Retailers’ claims about sustainability are meaningless without a sustainable price back to farmers.”
"We (IFA) will do whatever is required to ensure that farmer gets a fair return from the marketplace"
— Farmers Journal (@farmersjournal) September 14, 2016
- Joe Healy pic.twitter.com/wOfuqluvD3
Exploiting difficult weather conditions
IFA livestock chair Angus Woods accused the processors of exploiting difficult weather conditions, particularly in the west of Ireland: “We had the same tactics after Brexit, when the processors jumped the gun to turn the screw on prices. The market returns simply do not justify the cuts imposed on producers. Without a decent margin, farmers cannot survive”.
Today’s protest also heard strong criticism of the Competition and Consumer Protection Commission (CCPC), which has refused to investigate the competition issues raised by the independent report submitted by IFA to DG Competition in Brussels and the CCPC.
For the CCPC to conclude that the proposed Slaney/ABP deal does not threaten to affect significantly competition in a market beggars belief
Healy said farmers would be “flabbergasted” to discover that the CCPC has effectively washed its hands of their responsibility to investigate serious competition issues in the Irish beef sector which are highlighted in the report. “For the CCPC to conclude that the proposed Slaney/ABP deal does not ‘threaten to affect significantly competition in a market’ beggars belief,” he said.
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