May 8, 2007

 

Ireland's cattle farmers baffled on charges and deductions on beef plants

 

 

Cattle and sheep farmers in Ireland are confused over the charges and deductions on the prices they are paid from the sale of their cattle at beef processing plants, according to the findings of a recent survey.

 

Only 14 percent of farmers who were surveyed by the Irish Cattle and Sheep Farmers Association knew that the flat rate VAT (value added tax) refund was 5.2 percent, while 79 percent felt that the system was of greater benefit to the processor than the producer.

 

Meanwhile, only 20 percent of farmers knew how much they were being charged for mad cow disease testing as most of them considered the charges as the worst type of rip-off.

 

The survey also revealed only 7 percent knew how much the Department of Agriculture and Food levy was and fewer again (5 percent) knew what the bovine disease eradication cost.

 

Only 36 percent realised that this levy was also payable to the department while a mere 9 percent of the farmers surveyed knew the amount of the Bord Bia levy.

 

Some 38 percent of farmers were aware of the amount of the European Involvement Fund levy, while 51 percent did not know to whom it was payable, with majority of the respondents thinking it was going to the EU, as opposed to some farm organisations.

 

Only 56 percent of those surveyed realised this levy was voluntary.

 

Insurance was also a confusing issue, as 27 percent of farmers were unsure of exactly what the charges were, and only 34 percent realising it was voluntary.

 

Overall, of the 128 farmers surveyed in locations around the country, most were at best uncertain as regards the levels of deductions, while many had little or no information at all.

 

Eddie Punch, general secretary of the Irish Cattle and Sheep Farmers Association, said the findings highlighted the need for more awareness among farmers as to what they were being charged.

 

Martin Coughlan, national executive member of the association, who co-ordinated the survey, said there was far too much money being taken off farmers and urges a "clear transparency over the charges".

 

He said it is questionable what value farmers are getting for these deductions. Coughlan cited the mad cow disease levy is "scandalous" and calls for an immediate change as there is no need to test perfectly healthy cattle of 34 months of age.