The Irish Farmers' Association said last night it would continue to urge farmers not to sell their animals for less than an agreed minimum price despite having what it termed "a useful meeting" with the beef factories yesterday.
Since the middle of last week the IFA has been conducting what amounts to a boycott of meat plants which will not pay €2.66/kg for quality and €2.52/kg for plainer animals. This has led to the partial closure of some plants.
Following yesterday's meeting, which had been sought by the factories, the processors, represented by the Irish Meat Association, described the meeting as having been conducted in "a constructive fashion with a useful exchange of views from both sides".
Sources close to the dispute said it was clear that neither side appeared to be anxious to force the dispute too far because of the difficulties experienced by both farmers and factories resulting in the last dispute in January 2000.
Mr John Smith, chief executive of the IMA, said the beef industry had made it clear the cattle prices being sought by IFA were not in line with market reality. "However, there was general consensus on the need for greater differentiation in prices to favour the better quality cattle," he said.
"The industry shares the concerns of farmers about the current weakness in the marketplace. Both farmers and factories will have to work together to address the problems underlying the sector," Mr Smith said.
"The industry emphasises that commercial market realities must determine the price of cattle and that price is a matter to be negotiated between the individual factory and its farmer suppliers.
"Both parties should work constructively together to address the difficulties facing the sector. Actions which would hinder the development and servicing of commercial market outlets for Irish beef should be avoided," he said.
Mr John Dillon, president of the IFA, said farmers were resolute in their determination on the cattle price issue and were holding back supplies to achieve the minimum base prices.
The IFA, he said, would be reviewing the situation in relation to the dispute later this week when most of the plants are expected to be back in full production again.