Agreement was reached last night between the Irish Beef Processing Industry, farmers and the Department of Agriculture which will result in a major reshaping of the sector, currently worth £2 billion a year to the economy.
Following four and a half hours of discussion at the Department, the parties involved in the Beef Task Force came up with a plan which will require major investment, involving partnership between producers and farmers.
It was agreed a submission will be made to the National Development Plan. This would result in a more efficient industry for the beginning of the next millennium, based on quality production and will cost over £120 million.
The agreement will also involve a major commitment to producing quality beef from better quality animals. The farmers received a commitment that they will be paid top prices for quality animals rather than current flat rates.
They agreed that the Irish Food Board should embark on a major drive to win back markets lost since the BSE crisis of March 1996. This will be funded by a £1 levy on animals from factories and farmers with a State contribution also recommended.
Agreement will also result in the finalisation of a National Beef Quality Assurance scheme and the establishment of a voluntary code of practice between processors to exploit export markets for the benefits of the sector as a whole.
The Task Force, which should have reported to the Minister for Agriculture, Mr Walsh, six months ago, ran into difficulty over plans to rationalise the sector.
Mr Walsh last night welcomed the agreement and said its recommendations will be implemented within three months. The IFA president, Mr Parlon, said the agreement provided a new opportunity for beef farmers to move from low cattle prices and margins to a quality-based system.