WTO reforms would 'decimate' beef industry

Larry Goodman warned last night that Peter Mandelson's proposals to liberalise agricultural trade would "decimate" the beef industry…

Larry Goodman warned last night that Peter Mandelson's proposals to liberalise agricultural trade would "decimate" the beef industry in Europe.

Mr Goodman, who is Europe's largest beef processor, accompanied an IFA delegation to meet the Taoiseach, Bertie Ahern, to express concerns over the proposals, which will form part of the EU's position in the coming World Trade Organisation negotiations

He said that he had gone with the IFA to meet the Taoiseach because he was so concerned about the impact of the EU Trade Commissioner's offer on the sector.

"The Mandelson proposals present the greatest threat to the beef industry since we joined the EU and I feel very strongly about it," said Mr Goodman, who is also one of the largest farmers in the State.

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Saying the Taoiseach and his team had been very supportive of the points made to them by the delegation, Mr Goodman added that there were three major issues involved: market access, food quality and food security.

He said the proposal by Mr Mandelson to reduce import tariffs by 50 per cent would mean that beef producers here could not afford to compete with the flood of imports into the EU market.

"Even with full tariffs as they now stand, imports of beef from outside the Union increased by 80 per cent over the last two years and put a lot of pressure on European producers," Mr Goodman said.

He said most of the beef now coming into the EU from Brazil was in fresh, not chilled form, and this was a new development which challenged the European structures.

"It will absolutely decimate the European market if the reductions are agreed and it will make it totally uneconomic for Irish and British and EU farmers to produce beef if the proposals go through."

He said he believed that the Mandelson proposals, which were being backed by British prime minister Tony Blair, were also being supported by the United States, which does not import an ounce of beef from Latin America.

He said that quality issues apart, the offer also threatened food security, because with avian flu in Asia and foot-and-mouth disease in Brazil, future food security could not be guaranteed.

In a statement after the meeting with Mr Ahern, the president of the Irish Farmers Association, John Dillon, said the Government would have to increase pressure on the EU to have Mr Mandelson sacked before he destroyed the Common Agricultural Policy.