Meat factories accused of 'hijacking' drought conditions to cut beef prices by €80/head
The IFA has accused meat factories of 'hijacking drought conditions to cut beef prices and undermine the market, saying that over the past four weeks prices have been cut by up to €80/head.
IFA President Joe Healy said factories are taking advantage of the drought conditions and imposing unjustified price cuts ahead of the market.
He said over the last four weeks, prices have been cut by 20c/kg or up to €80 per head, which is the profit margin in most cases.
Healy called on the Minister for Agriculture Michael Creed to get tough with the factories and demand they stop the unnecessary 'price rot'.
He said the Minister can no longer remain silent on the factories and must demand that they show some level of respect for his work on market access.
However, a spokesperson for Meat Industry Ireland (MII) said that officially reported prices by the Department of Agriculture show that cattle prices have weakened around this time for the past four years.
Cormac Healy, Senior Director, Meat Industry Ireland, said that from a market perspective, exporters report that there is strong competition for beef from lower priced meat proteins.
"These trends are market related and any suggestions that the recent price falls are due to processors taking advantage of drought conditions are simply wrong and unjustified.”