December 9, 2019

Irish meat processor to raise meat prices in light of farmers' protests

ABP Food Group, a major meat processor in Ireland, is expected to raise its meat prices om December 9 as it slams protests by the Irish Farmers Association as "irresponsible," The Journal.ie reported.

It made the announcement early this month following protests demanding a significant and immediate beef price increase by members of the IFA outside Lidl and Aldi distribution centres.

The Larry Goodman-owned company said it is "at a complete loss" to understand why the IFA protested at retail distribution centres this week.

"The Beef Task Force met… and Joe Healy (president of IFA) and the IFA were fully aware that market indications pointed towards a cattle price increase in Ireland. This was reported extensively," an ABP spokesperson said.

"Joe Healy is also aware that cattle prices are quoted on a Friday and the timing of this stunt was motivated by competition for membership between traditional and new farm organisations.

"The price paid by ABP for cattle will always be determined by the prevailing market conditions and those conditions have recently improved. ABP can confirm, as was indicated on Tuesday at the Beef Task Force, that it will increase the base price of cattle for deliveries from next Monday."

Irish Cattle & Sheep Farmers' Association's beef chair Edmund Graham said the increase "of just 5c is a derisory offer that won't quell farmer frustration".

ABP's proposed price increase is reportedly below what's required. The meat sector is also accused of delaying price increases.

"ABP were already back by 5c on the other processors with base prices of just €3.45 (US$3.81) for both heifers and steers this week. At that rate, the bulk of any price increase will just go towards getting back on the same low level as the others."

According to The Journal.ie report, indicators revealed that there is no rationale for beef prices to stay at t €3.50/kg (US$3.87) or below when markets worldwide are taking off.

Currently, farmers in Ireland receive less money for their cattle than their British and EU counterparts. Irish prices are 20c/kg or €80 (US$88.46) per animal behind the Bord Bia price tracker, and 50c/kg or €180 (US$199.04) behind the UK price.

The IFA has accused retailers such as Aldi and Lidl of driving down food prices, with farmers being the ones who lose out.

Throughout the summer, farmers from other groups staged protests and blockades at plants across the country.

On August 27, ABP was among the companies who were granted temporary High Court injunctions restraining groups of protesters from blockading their factories and intimidating staff and suppliers.

Tensions grew with meat factories until an agreement was broached in September, brokered by Irish Agriculture Minister Micheal Creed and agreed between farmers' groups – including the IFA and the grassroots Beef Plan Movement campaign – and Meat Industry Ireland.

- The Journal.ie