IFA secures ongoing collection of controversial levies from some processors
Negotiations are still ongoing with beef processors over the collection of levies as the IFA seeks to shore up its finances.
A multi-million euro boost in the asset value of FBD shares has helped offset the drop-off in reserve funds, association’s AGM will hear.
Just short of €3.2m was paid in levies up to March 2018, a substantial fall from the €4.7m collected before the association was hit by the fallout from a pay scandal in 2015.
Formal agreements have now been finalised with dairy processors for the ongoing collection of the levy.
And it is understood that agreement has also been finalised with the Dawn Meats Group for collection of the levy and talks are at an advanced stage with the Kepak Group.
However, it is believed the relationship between the IFA and ABP remain strained and the collection of the levy by the processor remains suspended.
The IFA moved in 2016 to suspend the levy collection by ABP factories that was worth hundreds of thousands of euro. It came after the Goodman-group informed the IFA of plans to introduce an ‘opt-in’ model for farmers who wished to continue to pay the levies.
Total income for the year has shown a slight increase with marginal recovery in the commodity levies which suffered heavily in the aftermath of the crisis in November 2015.
An operating deficit of €1,509,612 for the year ending March 31, 2018 will be reported to the IFA AGM today. The deficit has been offset by a gain from financial assets, mainly FBD, of €2,129,021.
This compares with an operating deficit for the previous year of €1.4m.
Income for the year was slightly up on 2017 at €16.2m compared to €16.1, while expenditure was marginally lower at €17.5m compared to €17.7m for year ending March 31, 2017.
In 2017 the levies’ income yielded a total of €2.9m and the figure was €3.196m to the end of March 2018.
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