Factory insurance charges costing farmers millions
Published 22/03/2016 | 02:30
Farmers should be fully informed on insurance charges at meat factories which are taking millions of euro out of beef cheques.
The ICSA has called for more information on the deductions. Factory dockets currently contain only scant details on insurance terms and conditions.
ICSA beef chair Edmond Phelan said the charge imposed is generally around €2.50 per animal, with some factories charging more.
"Cows or other animals won't be insured, or in some cases, are subjected to a much higher fee of €5 upwards," said Mr Phelan.
According to the ICSA, the charges may be costing farmers as much as €3.7m a year.
This is based on around 1.2 million prime cattle killed each year with an average insurance charge of €2.25, along with a further 200,000 cows at a charge of €5.
It stated charges varied at plants across the country, with some putting it at €1.50, others €2.50 and some charging €5 for cows.
"The benefit to farmers from this scheme is limited to carcase adulteration, which is highly unlikely in prime beef.