IFA grassroots demand action on processors’ beef penalties

Limerick branch claims executive are ‘too close to the factories’

THE IFA leadership is under intense pressure from grassroots members to challenge the beef processors and end the 30-month price penalty. Farmers claim the penalty is costing beef producers up to €9m per year.

A Limerick IFA motion to the association’s national council accused the organisation of failing to deliver on a commitment to have the 30-month price penalty lifted.

The Limerick motion claims the IFA is “too close to the factories who collect a levy for them”.

It is estimated that farmers are losing between €7m and €9m per annum on returns for steers and heifers over 30 months of age at the point of slaughter.

Limerick IFA claim there “is absolutely no scientific justification” for the penalty.

Anger over the losses being incurred surfaced at a meeting of the Limerick IFA executive last week where the motion demanding immediate action by the organisation was unanimously passed after some speakers alleged the penalty was “a tool” being used by the factories “to rob” farmers.

ICMSA beef chairman, Michael Guinan, added his voice to the protest claiming the penalty “has no basis in fact or science” and “now serves no purpose other than as a basis for penalising farmers”.

Currently steers and heifers over 30 months at point of slaughter are penalised 12c/ kg under the factory QA premium, with a further 5-10c/kg penalty being applied by some processors seasonally on over age supplies. However, the age limit is not a criteria for QA certification under the Bord Bia Scheme.

Official figures show that 127,273 male beef animals slaughtered in 2016 were over 30 months, around 20pc of the total steer kill for the year, on which producers lost €40€50/hd depending on carcase weight. The breakdown is not available for heifers, but 15pc of the kill over age would amount to around 64,000 head being penalised.

Simon White of Limerick IFA told last week’s meeting in Adare that there was no scientific reason for the 30-months penalty.

“There is no pressure being put on by the IFA to have it removed and we are handing a hell of a lot of money to the factories every year when it comes to the 30 months [penalty],” he said.

“It is something that the organisation should have fought for and got - why have we not got it, and why are we not fighting for it now,” he asked.

“The factories are using it against producers to get cheaper cattle, we are losing out badly, and it is being used against us every year - it has to be tackled now,” alleged Eddie Scanlan, former member of the IFA national beef committee.

Responding to the criticism of the organisation, IFA executive secretary Bryan Barry said that the IFA is aware of the amount of frustration that the penalty is causing among farmers and he accepted that it was something that the organisation has to deal with.

ICMSA’s Michael Guinan said that the 30-month penalty was introduced during the BSE crisis. “It is frustrating for Irish farmers when they see farmers in other countries receiving bonuses for cattle over a certain age while we get penalised for animals over 30 months,” he pointed out.