AgriLand has learned that a letter is being circulated among beef farmers, addressed to the chairperson of the Competition and Consumer Protection Commission (CCPC).
The letter, seen by AgriLand, was drafted by farmer Francis Bourke from north Co. Tipperary, a member of both the Irish Farmers’ Association (IFA) and the Beef Plan Movement. He circulated the letter among protesters at one picket he attended, and it has since been spread further afield.
It is addressed to Isolde Goggin, the chairperson of the CCPC, and it is intended that individual farmers would sign it themselves and send it to the competition watchdog.
As you are not doubt aware of the recent protests at beef processing plants across the country, I am writing to you as a concerned member of rural Ireland. These protests are the culmination of a lack of competition and transparency over many years.
The letter alleges that a cartel is in place in the beef industry. It is then broken into four sections, highlighting the following issues: base price; feedlots; offal and by-products; and specifications for Quality Assurance payments.
Base price
The letter argues that there are “years of data” supporting its claim that the base price is being fixed across processors, which the letter says is in breach of the Competition Act 2002.
“Three companies process over 70% of the national kill and exploit this position of market dominance. This also makes it very difficult for new entrants to the sector due to this market dominance,” the letter said.
Feedlots
The letter argued that the practice of processors keeping feedlots of cattle “enables market manipulation and thus lowers the base price, affecting over 70,000 small family-run beef farms”.
It is also highlighted that the practice of factories controlling feedlots for beef is regulated in the UK and the US to ensure competition is not restricted.
Offal and by-products
The letter states that these products are valued at “approximately €170/animal and farmers receive €0”.
“This is unfair trading. Offal rendering/processing is currently controlled by one company in Ireland. All plants can only store offal for a small number of days before production must be halted,” it said.
The letter continued: “This would render this offal processing company a monopoly and enabling this processor to control processing capacity at all meat plants nationwide”.
Specifications for Quality Assurance payments
The letter highlights that the 12c/kg bonus paid out under the Quality Assurance scheme amounts to only 3.5% of the total price paid to farmers.
“This 3.5% ‘bonus’ has created anti-competitive practices and market manipulation. This enables meat processors to control the supply of cattle, and thus price,” it says.
The letter goes on to argue that the criteria – the 30-months rule; four-movements rule; 70-days rule; and Bord Bia farm audits – are used to control the marketplace.
‘Grave and serious issues’
The letter concludes by calling on CCPC chairperson Goggin to “utilise the resources within your office to investigate these grave and serious issues”.
It says – quoting the CCPC’s mission statement – that the agency must ensure that farmers can trade in “open and competitive markets where consumers are protected and businesses actively compete”.
Commenting on why he took this step, Francis Bourke said: “This is more than just price. Transparency will help rebuild trust. Beef processing needs farmers, but farmers also need the processors. It’s symbiotic.”
The letter can be viewed on Bourke’s social media accounts.