10,000 jobs in danger if price slump continues -ICMSA

Up TO 10,000 jobs will be lost in the farming sector if the current slump in meat prices continues until the end of the year, …

Up TO 10,000 jobs will be lost in the farming sector if the current slump in meat prices continues until the end of the year, one of the Republic's largest farming groups has warned.

The Irish Creamery Milk Suppliers Association (ICMSA) claimed rural Ireland was facing an unprecedented "catastrophe" and it urged the Government and the EU to intervene.

Speaking at a protest march in Dublin yesterday, the group's president, Mr Pat O'Rourke, said farmers were being quoted prices as low as 65p per lb, and an average of about 78p per lb. "We would have to go back almost 25 years to have similar prices being paid to farmers," he said.

He said that last January they were being paid well over 90p per lb, adding this price level could be achieved again if crucial export markets, such as those to Egypt and the Gulf states, were reopened.

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Unless what he described as the "beef crisis" was resolved, "losses of £170 million would be borne by all 135,000 farmers with cattle". He added: "15,000 full-time farmers who are totally dependent on beef face into the winter with no income."

About 200 members of the ICMSA gathered outside the Department of Agriculture for yesterday's protest. They handed in a letter outlining their concerns and a copy of an eight point plan to address the crisis.

Another copy was later delivered to the nearby Irish office of the EU for the attention of the Agriculture Commissioner, Mr Franz Fischler. As well as demanding a reopening of the Egyptian market, the plan calls for a review of the restrictions on live shipping in order to remove "unnecessary rules".

Under its plan, the ICMSA calls for the extension of a recently introduced top-up slaughter premium to all cattle slaughtered until the end of 2001. Currently, the £77-perhead premium applies only to bull beef.

In addition, financial institutions are urged to take "a reasonable approach" with farmers in light of their difficulties, and "where necessary, provide restructuring facilities for farmers at competitive interest rates".

Mr O'Rourke said "political direction" was particularly needed. He said the Government should establish a task force, involving the Taoiseach and Ministers for Foreign Affairs and Agriculture, which would take "political action" to reopen markets.

"This should be done now to stop the crisis deepening. I don't want a task force for those 10,000 jobs after they are lost. I want a task force to ensure those 10,000 jobs are kept," he said.

He added that he had spoken to the Egyptian ambassador and was "in no doubt that we have met all the criteria" for the resumption of exports. The ICMSA estimated that 68,000 head of cattle were currently awaiting a market.

"At the moment live trade is at a level that if it does not improve we will have another oversupply of beef next year," said Mr O'Rourke.

The prospects for the troubled beef sector will be the focus of the annual conference of the Agricultural Science Association in Galway on Friday, September 14th.

The conference will examine the future of beef export markets in Europe, as well as the impact on Irish agriculture of the forthcoming World Trade Organisation talks in November.

Joe Humphreys

Joe Humphreys

Joe Humphreys is an Assistant News Editor at The Irish Times and writer of the Unthinkable philosophy column