Farmers accuse competition commission of ‘brass neck’

Agency says farmers and processing industry should be careful in dispute negotiations

Livestock farmers Jimmy Gibbons from Trim and John Hayden from Kilcullen (Centre) at a protest about the price for beef paid to farmers.
Livestock farmers Jimmy Gibbons from Trim and John Hayden from Kilcullen (Centre) at a protest about the price for beef paid to farmers.

A farmers’ lobby group has reacted angrily to an intervention by the newly-formed Competition and Consumer Protection Commission (CCPC) in the beef prices dispute, accusing the commission of “partisan” behaviour and of taking the side of meat factories in the row.

John Comer, the president of the the Irish Creamery Milk Suppliers Association (ICMSA), criticised the commission this afternoon for warning against price fixing during talks later today.

"The intervention will be seen by farmers as supporting the factories' position," said Mr Comer, referring to the meat industry's argument that the difference in market prices for cattle between Ireland and the UK is mainly as a result of market forces.

Mr Comer said the commission’s warning is “brass-necked and almost without comparison in terms of insensitivity and display of partisanship”. ICMSA said the timing was suspicious and said it “looked like” the commission had been “whistled up to provide an excuse for the policy of non-intervention”.

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“The [COMMISSION’S]intervention will be seen as protecting the practices and profits of the meat factories at the expense of the farmers,” said Mr Comer.

CCPC earlier today warned farmers and the meat processing industry against straying into price fixing during negotiations to end the beef dispute, which has led to recent blockades of 14 of the country’s largest meat factories.

Representatives of the Irish Farmers Association and other groups including the ICMSA, together with the Ibec-affiliated Meat Industry Ireland group, are due to meet at 4.30pm for scheduled Beef Forum talks in Celbridge, chaired by former civil servant Michael Dowling.

The talks will be dominated by the recent blockades - factories owned by the three biggest processors were shut for two days this week - and the farmers are threatening to repeat the protests until they get an increase in the price they receive for beef.

Outside of the formal beef forum, talks facilitated by Mr Dowling have also taken place in recent weeks to try and find a solution to the crisis, which the factories say costs €10 million for each day the plants are blockaded.

Farmers say only a substantial increase in the price for beef will end the dispute.

The CCPC said it had written to all parties “ to remind them of their obligations under competition law, in the interests of consumers”.

“The commission has taken the action of contacting parties as a pre-emptive step given the potential that planned discussions, due to take place today, could move into competition-sensitive areas, for example in relation to fixing prices or anti-competitive collective action,” it said.

“We have stepped in to remind both the beef processors and farmers of their obligations under competition legislation. [WE]will also keep under review the impact of any actions or agreements on the supply chain and on consumers.”

Mark Paul

Mark Paul

Mark Paul is London Correspondent for The Irish Times