Ireland’s top 10 beef companies earn €7.6bn while average beef farm income is €8,318 – ‘immediate action is required’, says IFA

THE staggering €7 billion gap between the earnings of Ireland’s largest beef companies and our 75,000 beef farmers is a damning inditement that beef farm families are being failed, according to IFA Presidential candidate, John Coughlan.

Commenting this morning as the IFA blockade continues at the Dunnes Stores depot in Cornelscourt, Dublin, Coughlan said a lack of Government leadership and urgency, reflected in the fact that the Beef Market Taskforce has met just once in 87 days, is deepening the inequitable situation where beef farmers are earning just over €8,000 a year while beef companies and retailers report huge turnovers.

Citing figures published by the Irish Times in its latest ‘ Top 1,000 companies’ report indicate that combined, Ireland’s top 10 beef companies had a turnover of €7.6 billion in 2018.

The 10 companies, summarised in the table below, are all members of Bord Bia’s ‘Beef Member List’ and are involved in the slaughter and processing of Irish beef.

John Coughlan, IFA Presidential candidate, said:

“The scale of the combined turnover of Ireland’s top 10 beef companies is a ‘slap in the face’ to beef farmers who are told time and time again that they must accept the apparent reality that there is no money to be made in the beef sector. There clearly is.

“Huge profits are being made but, due to a lack of supply chain transparency and a refusal by beef factories to raise the price paid for beef, beef farmers are not achieving a fair share”, he said.

The 2018 Teagasc National Farm Survey outlined that the average farm income of beef farmers in 2018 fell 21% to €8,318 – 80% below Ireland’s average industrial wage. Ireland’s 75,000 beef farmers earn a collective €610.4 million.

“Beef farm families are on their knees. The ongoing protests are a reflection of how serious this issue is and the need for action and change. The Beef Market Taskforce was announced by Michael Creed on September 15 and in the 87 days since, there has been one meeting, scheduled following the recent tractor protests in Dublin.

“The 5c price per kilo announced in recent days is paltry and does nothing for a beef farmer on €8,138”.

Coughlan’s analysis comes today as the Irish Farmers Journal reports that Irish supermarkets are making profit margins of up to 45% on fresh meat. The margins were obtained through a leaked price guide sent to supermarket management.

“Today’s report by the Irish Farmers Journal again highlights the high profits being made by other stakeholders in the beef sector. Everyone, except the farmer who produces the product, is making high margins off the back of our green image and grass-based production.

“Even when supermarkets offer beef at reduced prices for promotional activity, they are still making double-digit profit margins. The only stakeholder to lose out here is the farmer.

Concluding, Coughlan said: “The Government needs to realise that for farmers, the Beef Taskforce is the equivalent of the national pay talks. All the parties to the talks, including the meat industry and retailers, need to meet, put a plan in place and act as a matter of urgency.

“Beef companies are making huge profits while beef farm families continue to suffer with low prices. They have been completely disingenuous in their efforts to resolve the crisis so far.

“The lack of urgency is staggering. Farmers do not need a stop-start talking shop, they need action. The only people who benefit from delays are meat barons who are pocketing the additional margin which analysis shows is in the market.”