Dec 14th, 2009

Cahill criticises new MII price grid

“Farmers must be aware of the hidden pitfalls in the proposals made by the Meat Industry on the new pricing system. It most definitely is a situation of ‘seller beware’. I am all for improved breeding and rewarding farmers accordingly but the bulk of dairy cross animals will be suffering penalties of between €65 and €108 compared to a flat rate price. It is not true to say that the there is no differential in the current pricing system. An O4 animal currently suffers a penalty of €55 per head. This is going to be effectively doubled to €108”, stated Mr Cahill

The ICMSA President said that this is a move which will severely penalise dairy cross animals and that a significant proportion of the kill will actually get lower prices.

“I am surprised that there has been such a warm and uncritical welcome for these proposals because the devil is in the detail. For instance, the 6cent/kg bonus for the Quality Assurance Scheme – which, in fairness, we sought and welcome - is confined to grades between U+2+ and O=4= and for animals under 30 months. This scheme, if fully adopted, will prove to be a very effective instrument at cutting prices for all farmers but most particularly farmers doing a good job in producing quality beef from the dairy herd. It is ICMSA’s opinion that the proposed MII new price grid should not be implemented until further consultations have been concluded between farmers and the industry”, concluded Mr Cahill

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