Jan 6th, 2010

ICMSA say ‘growing level of disquiet’ on new beef price grid

The President of ICMSA, Jackie Cahill, has highlighted the growing level of disquiet being expressed by farmers at the operation and prices being paid through the new beef price grid. Mr Cahill has repeatedly criticised the new grid as being rushed and ill-thought through.

“We are certainly being contacted by farmers from all over the country who are most unhappy with the prices decided through the new grid and most criticism is being directed at the fact that there is no verifiable reason being given the farmer that justifies the very substantial gap between the top and the bottom of the grid. In those confused circumstances, we feel that the grid should now be set aside for payment purposes until there is further consultation. In fairness to the farmers, would it not be reasonable and logical for the grid system to be run parallel with the normal price system for a period of up to a year so that farmers would be able to judge the impact of the new grid and decide on that basis whether it was fair for everybody? Farmers need to be able to make an objective comparison and ICMSA is not prepared to tolerate a system - much less support it - in the absence of independent and verifiable data”, said Mr Cahill.

Pointing out that neither Teagasc or the Department have even collected the detailed information on the distribution of the various grades and fat classes, Mr. Cahill said that the classification now contains 60 different combinations of classification and fat compared to an effective 20-odd combinations in the past. He said there is widespread concern that this confusion in classification will not alone bring about an intolerable penalising of animals from the dairy herd but that the overall payout by factories could be lower. There was, he said, no way of verifying the figures in support of the new grid.

Mr. Cahill said that farmers should be aware that the agreement, as it stands, will become even more discriminatory when animals grading Fat Class 4 = will suffer a price cut next month. It is completely wrong and there existed not a shred of evidence to maintain that the new price grid will increase overall cattle returns. What it will certainly do, according to Mr Cahill, was bring about a substantial and unfair re-allocation of price between the various types of cattle slaughtered and it might well enable the meat plants to boost their margins rather than increasing returns to farmers.

Ends. 6 January 2010.

Jackie Cahill, 087-2820663
President, ICMSA.

Or

Cathal MacCarthy, 087-6168758 or 061-314677
ICMSA Press office.

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