Downey admits factory levy is 'a huge issue' for the IFA
Published 16/04/2014 | 02:30
The IFA leadership is coming under increasing pressure from farmer members to review the practice of beef slaughter plants collecting levies for the organisation.
Speaking at a meeting of Limerick IFA's county executive last week association president Eddie Downey admitted that the factory levy had become a contentious issue nationally.
"It is a huge issue on the ground. At every meeting people want to raise it, because they believe that it is a problem," Mr Downey said.
However, the IFA leader insisted that collection of the levy, which is estimated to be worth close to €3m to the organisation each year, did not impact on the farm body's relationship with the factories.
"The levy has no influence on IFA policy, but the belief is out there among farmers that it is stopping us doing what we could do for beef farmers and we have to seriously look at finding an alternative," Mr Downey said.
The European Improvement Fund (EIF) is collected on animals supplied by farmers to the beef plants at €2/hd approximately on behalf of the IFA. On a national throughput of 1.5-1.6m/hd it accounts for up to €3m a year.
Mr Downey came under severe pressure at the Limerick meeting from members who were critical of what they claimed was the association's failure to challenge the processors on the current beef crisis.