IFA demand payment on the day
Published 22/02/2012 | 06:00
With cattle prices on a high, farmers are being warned to reduce their exposure to the risk of non- payment by buyers.
The IFA is urging farmers to insist on payment on the day for cattle supplied to meat factories and to use local marts for sales of younger stock.
IFA livestock chairman Henry Burns said the IFA policy on payment was clear: farmers should insist on immediate payment for their valuable finished stock.
"If any factory that is not in a position to meet that requirement, farmers should think again and examine other options," said Mr Burns.
"Given the increased value of livestock, farmers simply cannot afford to have a problem in relation to payment.
"There have been numerous examples down the years where payment difficulties emerged and farmers ended up with problems."
The closure of factories such as United Meat Packers, Henshaws of Limerick, Clover Meats and Tralee Beef and Lamb are some examples of where meat plants went out of business in recent years, while exporters Sallyview Estates also closed.
While the majority of farmers who supplied cattle to those buyers were paid in full, some individual farmers were left out of pocket as a result.