Hopes that cattle route will reopen

Irish cattle farmers are confident that at least one of the two companies interested in shipping live cattle to the continent…

Irish cattle farmers are confident that at least one of the two companies interested in shipping live cattle to the continent on a route abandoned by P&O in December will open the route again in late January.

The farmers, exporters and on one occasion, the Minister for Agriculture and Food, Ms Coughlan, had been in negotiation with the Marseilles-based CMA/CGM company to take over the P&O route to the continent.

Shippers had guaranteed €2.2 million worth of business to the company, which specialises in livestock shipping, and the Government had said it would help source EU funding if it could.

However, over Christmas, while the French company was considering its position, a Wexford-based company, Celtic Link, owned by the Flaherty family, Kilmore Quay, purchased the former Pandoro vessel, Diplomat, and said it would reopen the service on February 15th next.

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The Flaherty family, who have been traditionally involved in the fishing industry, are understood to have paid €10 million for the boat and the goodwill from P&0.

It emerged yesterday that there have been discussions between Celtic Link and the French company with a view to rationalising the situation.

Meanwhile, the Irish Farmers' Association claimed yesterday that beef factories were being forced to pay €2.80 per kg (£1 per lb) for heifers since decoupling was introduced this week.

"The power has eventually shifted from the factory to the farmer and we know agents are offering farmers €2.52/kg and a cheque for €80 to replace the slaughter premium for their cattle," said Mr John Bryan, the organisation's beef committee chairman.

Mr Laurence Fallon, chairman of the IFA sheep committee, said there had been a substantial increase in lamb prices since Christmas and lambs were now making €3.72/kg.