IFA's beef factory boycott has not yet had an impact

The boycott of beef factories by the Irish Farmers Association agreed at a meeting of farmers on Tuesday night has not impacted…

The boycott of beef factories by the Irish Farmers Association agreed at a meeting of farmers on Tuesday night has not impacted yet on the processors.

The boycott officially started from midnight on Tuesday but some suppliers are holding supplies which could last for two days.

It was decided by the 500 beef farmers who met in Carlow in what is being seen as the first real test for the new IFA president, Mr John Dillon.

Mr Dillon, who claimed to be the prime mover in sparking the blockade of meat plants in January 2000, did not advocate a shutdown of the plants but warned the factory owners that cattle would not be sold at less than €2.66 per kg (95p per lb) for ordinary grade and €2.52 per kg (90p per lb) for prime beef.

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Farmers providing beef during the winter were losing money on their animals if they sold at €2.66 per kg, and this could not continue, he said. He said factories were forcing the prices down despite buoyant demand for Irish beef in Britain, and the continental markets were recovering to pre-BSE-crisis price-levels.

But last night the Irish Meat Association, representing meat exporting plants, said the price paid for cattle was determined by supply and demand. "The level of cattle prices must reflect the commercial reality of the marketplace, and while cattle prices have fallen in recent weeks, returns from the marketplace have fallen at an even faster rate," it said.

It said processors were also concerned about the recent weakening in the beef market and the continuing difficulties in securing outlets for Irish beef.

"The IMA has, since mid-January, been seeking a meeting with the IFA leadership to discuss the market situation in the beef sector and the implications for both producers and processors," it added.

The IFA said there had been no refusal to have a meeting with the IMA and it was seeking an urgent meeting with the factories to outline the IFA's position and frustrations. Mr Dillon had told the meeting that all Irish international markets, with the exception of Russia, remained closed. Egypt was open in name only and not a single kilo of beef has been exported so far. He warned that the IFA would make market access and the re-opening of the international beef market a major political issue leading into the general election. He said market access would be a critical issue in terms of cattle prices for the remainder of the year.