Factory penalties ‘cost farmers €33 million last year’ – Cullinan

Penalties imposed by ABP, Dawn Meats, Kepak and the other factories cost farmers over €33 million last year, according to analysis by Irish Farmers’ Association (IFA) treasurer Tim Cullinan.

Cullinan’s analysis of how beef and suckler farmers are being penalised by the factories was published in advance of the recommencement of negotiations between the factories and farmers on Monday, August 19.

Cullinan, who will be contesting the IFA’s presidential election this year, commented on the analysis.

“The factory-imposed restrictions on age, the time spent on the farm and the number of movements cost beef and suckler farmers over €17 million alone in 2018,” he said.

In addition, the denial of the 12c/kg quality assurance payment cost farmers over €16 million last year, a total of €33.5 million in one year.

“Unless ABP, Dawn Meats and Kepak produce substantial new money to fix the grid, there will be no gain for farmers.

“Beef farmers’ losses are mounting and there is no evidence yet that the beef processors are taking the situation seriously or showing any commitment to sustain producers through a very difficult period.”

Source: Tim Cullinan

The treasurer warned that “tinkering with the grid is not a solution without new money”.

“Over €30 million is required to fix the grid problem.”

Cullinan will be speaking to beef farmers from across Cork, Limerick, Tipperary and Clare at the Cappamore Agricultural Show tomorrow, Saturday, August 17.