A cut in EU export refunds on beef, which the Irish Meat Association claims will reduce its value by 2.5 p a pound, has the potential to reopen the bitter dispute between factories and farmers.
The EU Beef Management Committee announced a 5 per cent cut in the supports which are paid to EU exporters for selling their produce outside the Union.
The Irish Meat Association spokesman, Mr John Smyth, said the cuts were equivalent to 2.5 p per lb on the average carcass exported by Irish meat plants. "It is a bad blow for the trade because 70 per cent of Irish steer beef [bullocks] are exported outside the EU with the aid of these export refunds," he said.
Asked if this meant that the factories would be cutting the price they agreed with farmers following the dispute in January, Mr Smith said this was a matter for individual plants. "I do not buy cattle. It is up to those who are buying and selling cattle. These cuts make life much more difficult for our members," said Mr Smyth, whose organisation represents the Irish meat plants.
Last night, Mr Tom Parlon, the president of the Irish Farmers' Association who led the dispute which closed down the industry for nearly a fortnight, said the IFA would be carefully monitoring prices being paid next week. "There is no justification for a cut in price because these cuts were imposed across the board on all products because of the strength of the dollar," he said.
He said that not only had the meat plants the benefit of a strong dollar but they also had the benefits of a strong sterling which made them very competitive on third-country (non-EU) markets.
He said supplies of cattle for processing were quite scarce because there are 300,000 fewer cattle in the country this year than last because of the level of live exports of young cattle.
A spokesman for the IFA said that a reduction in prices being paid could lead to difficulties between the farmers and factories who agreed a 90 p per lb price for the most common grade of cattle to end the dispute.
The State's meat plants suffered big losses during the dispute and the Irish Farmers' Association was fined £500,000 for breaching a court order not to blockade plants.
Following the resolution of the dispute, the IFA set up a bureau to monitor cattle prices being paid by plants.