The move by Tesco to pay its processor suppliers the same price for beef for the next three months has been acknowledged by the Irish Farmers’ Association (IFA).
Commenting on the retail giant’s announcement yesterday, Wednesday, April 1, IFA president Tim Cullinan said that, in his discussions with Tesco, he has stressed the need for Tesco in the UK to give a similar commitment.
“Tesco is backdating this commitment to January. Processors have to step up and rewind the cuts of 20c/kg since Covid-19 began,” he said.
“While the beef market was in turmoil, there were also huge price drops on lamb and real concern about other commodities,” he said.
“I would now call on the other major retailers to make a similar price promise,” he said.
What we need is a concentrated effort across the supply chain to steady markets.
“I would call on meat processors to support farmers at this time,” he said.
Tesco pledges to maintain beef price to June
Announcing its price hold yesterday, Tesco said it is very conscious of the pressure that beef farmers are under due to Covid-19, with beef prices falling and other major purchasers and markets disappearing.
Commenting, Joe Manning, commercial director of Tesco Ireland, said:
These are unprecedented times for everyone and it makes sense to honour the market conditions for beef as they were pre-Covid-19 in January of this year.
“Beef farmers, as a very busy and critical essential service at this time, need to be supported.”
Tesco Ireland said it does not negotiate with or pay farmers directly and it has advised its beef processors of its decision.