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Explainer: What's the beef between farmers and meat factories?

In the latest development, farmers are holding a 48-hour protest at meat factories around the country.

Updated 8.45am

LAST MONTH, BEEF farmers started a 24-hour blockade of meat plants across the country.

Since then there has been a back-and-forth between the two sides, as farmers call for better payment for their beef and processors claim this would not be sustainable.

Farmers are currently holding a 48-hour protest at meat factories around the country, after talks aimed at reaching a resolution ended in failure on Friday.

So, what’s it all really about?

Essentially, farmers want to be paid more for their meat and factories don’t want to do this.

Beef farmers argue that prices in the UK have risen and an increase in Ireland should follow. They say:

  • Irish beef sales in the UK are up 20%;
  • Prices in Britain for R grade steers are running at around €1/kg higher than the Irish price;
  • Beef farmers in the UK are paid €350 more for their meat than farmers in Ireland.

They want the factories to reflect the improved market situation in the prices they pay to farmers.

On the other side, we have the meat factories, who say prices across the EU have been reduced. EU beef consumption has fallen by 700,000 tonnes since 2010 and we produced 15% more beef this year.

The Meat Industry Ireland (MII), said this means “we are selling an additional 75,000 tonnes of beef into a market where consumption has fallen dramatically during the economic recession”. They’ve also said that cattle prices are strengthening anyway, increasing from 92% of the EU average to 100%, so the action taken by farmers is “unnecessary and questionable”.

MII claims the continued focus on comparing Irish prices with that of the R grade steers in the UK is “over-simplistic, inappropriate and wholly misleading”.

In a statement, it said:

The independent Dowling report (June 2014) into the beef sector confirmed that price comparisons, simply on the basis of the R3 steer, were not appropriate as the “level of access to the premium retail market in the UK is not the same for both sides”. Using more market relevant benchmarks indicates that Irish beef prices are very much in line with comparable EU prices.

The protest

Last month’s 24-hour protest brought factories across the country to a standstill with 10,000 farmers turning up to express their anger and frustration. The Irish Farmers’ Association (IFA) says our main markets have now recovered and farmers are no long prepared to tolerate loss-making prices.

What happened next?

MII (obviously) condemned the action, saying it would damage Ireland’s reputation with customers as well as disrupting day-to-day business in the ground. The industry also said the blockade would not impact EU beef market prices.

However it did launch the Minister for Agriculture into action. Having already convened Beef Forum meetings in April and June, Coveney had another meeting where beef was the hot topic.

He called all stakeholders, which included processors and the main representative associations – the IFA, the ICSA, the ICMSA and Mocra na Ferime – to the table for meetings on the issue.

This was the first time that a roundtable also included buyers from Tesco and McDonalds, who together are the largest buyers of beef in Ireland.

Coveney secured an agreement between farmers and processors to enter into intensive discussions, under an independent chair.

I am fully aware that beef farmers have had a challenging year having seen reduced prices for their animals compared to this time last year.   I welcome the honest exchange of views between stakeholders today.

It was agreed that another meeting would be convened on 12 November, to get an update on progress made in negotiations between the two sides.

So, that’s that then…

Not quite.The IFA’s executive council held an emergency meeting in Dublin at the start of this month to consider its next move.

The council decided to sanction further action against beef factories unless there is movement on prices immediately .

Talks broke down and the 48-hour blockade of meat factories began yesterday at 3pm. Thousands of beef farmers across the country are taking part in the protest.

First published 3 November

Read: Farmers are holding a 24-hour protest about beef prices>

Read: Farmers and processors agree to two weeks of talks to try to end the beef crisis>

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58 Comments
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    Mute Paul C
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    Feb 2nd 2012, 12:59 PM

    Sad to see the jobs go but associating the name ‘Fastnet line’ with this service was a bit much. It took 11 and a half hours to get to Wales. You’d be quicker windsurfing.

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    Mute
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    Feb 2nd 2012, 2:29 PM

    its named after the fastnet rock just off baltimore in west cork…

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    Mute Burned Toast
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    Feb 2nd 2012, 3:33 PM

    The one it goes nowhere near?

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    Mute
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    Feb 2nd 2012, 3:38 PM

    its what they named it after and that is a fact go take up the issue with owners.

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    Mute Bryan Holmes
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    Feb 2nd 2012, 4:46 PM

    @ Tony Stanley, I have never been on a ship where the main engines constantly ran unless the vessel is departing soon after arrival. Diesel Generators power the vessel in port.
    Heavy fuel oil is only used for propulsion on long voyages when the vessel is finished manoeuvring and clear of land.
    A skeleton crew has to stay onboard for safety reasons and they are entitled to electricity like the rest of us.
    Now the company has folded the vessel can be off hired and sent back to owners or sold, I hope the crew get any wages they are owed, if you want to pay more for goods imported to this island keep pushing for a carbon tax on ships!

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    Mute Colin Barrett
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    Feb 27th 2012, 12:06 AM

    Yes carbon tax on ships , push up the cost of exporting , make us even more uncompetitive and throw what few jobs we have left to the four winds , great idea , sounds like one worthy of Fianna Fail in its heyday.

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    Mute Danny Hurley
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    Feb 2nd 2012, 12:43 PM

    Sad to see it go ….

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    Mute Alan Quinn
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    Feb 2nd 2012, 1:22 PM

    Where are Leo Varadkars commits today! He hasn’t been in the news for 17 hours and I miss his fat face.

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    Mute Alan Quinn
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    Feb 2nd 2012, 1:23 PM

    Comments not commits!

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    Mute Burned Toast
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    Feb 2nd 2012, 12:46 PM

    Pity. Though I never used it myself.

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    Mute Burned Toast
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    Feb 2nd 2012, 1:51 PM

    So it’s somehow a bad thing that I never used the service then…?! God help us.

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    Mute Michael Hegarty
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    Feb 2nd 2012, 1:12 PM

    I’m sorry to see it go, another dozen or so Cork families in despair today. It was too expensive for the average family though, they could go to France on Brittany Ferries for in and about the same money.

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    Mute P Wurple
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    Feb 2nd 2012, 12:54 PM

    What will happen the Julia? That ship is docked in the city center, all engines running. If they stop the engines, it seizes up I believe, but who pays for the diesel and manpower to keep it going?

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    Mute
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    Feb 2nd 2012, 2:28 PM

    i dont think thats true at all

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    Mute P Wurple
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    Feb 2nd 2012, 2:32 PM

    Which part? I can see it is parked there with my own eyes. I can hear the engines turning over. It is manned, and it would be normal enough for large engines to seize when they stop.

    Maybe you know more than I do, please, elaborate.

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    Mute
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    Feb 2nd 2012, 2:37 PM

    its normal enough for large engines to seize when they stop? what are you talking about…so every ship and large ferry in the world is constantly burning fuel…that is just not true at all…the julia has its auxilery engines running while people are on board as these much smaller engines provide the lights and all that on board.

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    Mute P Wurple
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    Feb 2nd 2012, 2:46 PM

    Are you a marine engineer on the sly ;)… I thought large diesel engines prefer to run long and steady, Very long time since I did mechanics though, things must have changed. :)

    Are people living on it so, that they are still running them?

    The question still is though, what will be done with a big fat ship docked in cork city center.

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    Mute Tony Stanley
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    Feb 2nd 2012, 3:18 PM

    P’s right ya know!
    An auxiliary power unit operates to keep power levels up on the ship but this is powered by the diesel onboard, in most ships of this nature the engines are placed in a low idle power mode with the engines to prevent them from stopping altogether! The props may not be turning but thing are still in action to prevent mechanism from seizing up and to keep things greased! This is one of the reasons the shipping industry is one of the highest pollutants in the world (despite never getting even a fraction of the green taxes that air travellers suffer from despite aviation only contributing a fraction of the greenhouse gases that ships do) and why you almost always see smoke coming out of the funnels of stationary ships in harbours!!!!!

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    Mute Mike Chapman
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    Feb 2nd 2012, 4:03 PM

    @Tony Not to mention the bunker fuel used is just a step up from burning bitumen.

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    Mute P Wurple
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    Feb 2nd 2012, 4:20 PM

    Thanks Tony! I was just looking up the Julia. The ship is 30 years old, engines are bound to be ancient and inefficient at this stage, and probably need a bit of nursing.

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    Mute Francis Stokes
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    Feb 2nd 2012, 4:57 PM

    I am sure they have to pay port taxes while it is berthed in the docks in Cork.

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    Mute Michael Hegarty
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    Feb 2nd 2012, 5:59 PM

    The engines were changed in the past 18 months, so should be effecient. Hope they manage to sell it to pay off their debts. @P Wurple Having watched your posts over a few months I notice your pouncing on anyone that may have a differing option to you. Belittling people like asking them are they Marine Engineers, give people an inch, it’ll make their experience on here a biymt better and hopefully they will come back and be regular contributors!!

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    Mute P Wurple
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    Feb 2nd 2012, 8:23 PM

    Michael, I am direct, always have been. Maybe it comes across as harsh on the internet. I was not being sarcastic or belittling to anonymous, there are buckets of merchant navy, navy and marine engineers in cork, this is where the college is, why would he not be one? I will take anyones direct experience or knowledge over my own measley hunch. I even stuck in a friendly smiley. :)

    Plus, I was the one being jumped on, not the other way around.

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    Mute Michael Hegarty
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    Feb 2nd 2012, 11:50 PM

    Correct, you are direct and I feel you are harsh on people also, that’s what I was highlighting. I also know where the Maritime College is, as I live here in Cork. I’ve said my bit and was honest about it. Take my advice, chuck it aside, but I had the balls to say it to you, with respect!

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    Mute Peter Carroll
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    Feb 2nd 2012, 1:31 PM

    The sad fact is that with upgrades, bypasses and new bridges the road from Cork to Rosslare makes the Rosslare – Fishguard route quicker and cheaper than the Julia.

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    Mute Patrick Declan O'Shea
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    Feb 2nd 2012, 5:13 PM

    Well, it does, but when your business plan was thought up over night, you buy the wrong ferry, you upset your main income from the start, and the service is shoddy, you can not expect a enterprise like this to last in the modern era.

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    Mute Martin Jordan
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    Feb 2nd 2012, 3:47 PM

    Was very handy when I was moving over and back from London ….. It used to go from Cork late evening so you could go to the bar and have a nice few pints, get a berth and get the hard down and then 3 hrs on the M4 and your in London ….. Shame

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    Mute Frances Gallagher
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    Feb 2nd 2012, 1:16 PM

    sad indeed, we’ll miss the Julia.

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    Mute Burned Toast
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    Feb 2nd 2012, 2:00 PM

    you wha now?

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    Mute Marcus Mc Cann
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    Feb 2nd 2012, 2:11 PM

    Where’s the Minister for Tourism and Trade ??

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    Mute Ian Lynas
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    Feb 2nd 2012, 1:40 PM

    what a shame used it several years ago

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    Mute Martin Jordan
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    Feb 2nd 2012, 3:47 PM

    “Head down” …… Apologies

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    Mute Tadhg O'Donovan
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    Feb 2nd 2012, 5:57 PM

    Was not viable. Management were inept. Cork CC should not have gotten involved. Embarrassing.

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    Mute Paula Ni Riogain
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    Feb 2nd 2012, 9:05 PM

    Travelled on it once last year returning from Wales. Had travelled over from Rosslare and returned via Swansea -Cork. No facilities at either end (buses / train links) for foot passengers. The Welsh taxi driver said it made no difference to the taxi business as so few travelled (apart from Volcanic Ash Cloud week). The boat itself was dirty, smelly and hadn’t one bit of information about Ireland, never mind the SW. Were so few passengers (~25) & cars (max 20) on board that week (the week before Whit) I’m not surprised at this. Plus, I saw somewhere that the business plan for recovery projected growth based on passenger / freight capacity that the boat physically couldn’t take anyway.
    Poor service and abysmal planning can’t be made workable simply because the idea might be nice.

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    Mute Liam Cronin
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    Feb 2nd 2012, 7:51 PM

    fair point William. if it wasn’t for aeroplanes this 1920s business plan may actually have worked!

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    Mute Patrick Declan O'Shea
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    Feb 2nd 2012, 5:20 PM

    This service was never going to work, due to bad management from day one. It’s a shame, the amount of money that has been wasted, and maybe the chance of ever getting a boat back again, due to this.
    The Swansea Cork route is now probably dead, and no hope of bringing extra tourist into the W Cork/S Kerry region, which was the main intention of the boat, but unfortunately, didn’t happen

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    Mute Aleo
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    Feb 2nd 2012, 2:52 PM

    A great shame, and we’ll miss it.

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    Mute David
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    Feb 2nd 2012, 11:09 PM

    It was obvious to anyone with a brain it was never gonna work out unfortunately. Better off if the money was invested in marketing or even the hotel in Beara could have been finished off. The tourists are in killarney and kerry, it’s just a matter of getting them to travel further south and promote in international media also. Why not market a drive from killarney right down around west cork, back through cork city and fly out from there again. It could work in both directions. Flights and car hire are so cheap now and all the B&B’s and hotels will get on board with it too. But instead all that money was wasted on an ancient ship that was probably fit to be scrapped when they bought it. Swansea to cork over 10-12 hours like. How was that ever going to compete with airports from all over the world.

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    Mute Dave McCarthy
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    Feb 2nd 2012, 9:54 PM

    Not enough demand, hence no supply

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    Mute William Grogan
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    Feb 2nd 2012, 7:41 PM

    It’s a wonder someone has blamed Michael O’Leary.

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    Mute William Grogan
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    Feb 2nd 2012, 7:41 PM

    s**te…hasn’t

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    Mute Jennifer O Keeffe
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    Aug 17th 2013, 10:52 PM

    Sorry to see this ferry service end — many a good memory travelling to & from uk & sleeping over …..

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    Mute Joey Dempsey
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    Feb 3rd 2012, 12:35 AM

    Whilst sad for those who have lost their jobs, the notion a ferry service taking 12 hours across the Irish sea was ever going to be viable is just complete nonsense. The BS coming from local interest politicians on the news this evening was predictable nonsense. This service brought nothing either to the cork / kerry economy nor for that matter swansea’s were i worked for 12 months. The greatest mystery I and numerous others could not work out was were all these supposed vast numbers of visitors were going, certainly not swansea. The freight business was also too small as the ferry could not handle the loads of ferry’s used by Sea Link and the dreadful Irish (every nationality) ferries. Its not a surprise that all county councils, government agencies and especially tourism bodies both in Ireland and wales ran a mile when this company came looking for funds. Sad to say today’s decision was inevitable.

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    Mute Eoin Faz
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    Feb 2nd 2012, 10:44 PM

    If there are similar losses at both termini it should be cost neutral on both local economies.

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