Mr. Des Morrison:

Members asked about grading practices at meat plants, specifically mechanical grading or the quality payment system, QPS. We were opposed to this when it was introduced in 2011 and are still opposed to it. Farmers have lost all confidence in the grading process. It only grades one half of the carcase. With manual grading, the grader makes a visual assessment of two halves of the carcase, calling it O+, O-, or R, for example. Approximately 91% of slaughtered animals are graded by the machine. That is mechanical grading and it grades only one half of the carcase. European legislation determines that the machines only have to be 60% accurate. That applies all over Europe, not just in Ireland. I ask any member, farmer or even manager of a football team if we should put up with a 60% strike rate in any industry. Now that we are in the digital age, it takes five seconds to grade one half of the carcase. I am not saying Irish plants are only 60% accurate, but they are nearly 90% accurate. A person could be on the off-side because only one side of the carcase is graded; there could be two grades for a carcase under the current system. They could be O+ or R-, for example. One grade out could equate to a farmer being out by 12 cent per kilo; with a 350 kg carcase, that is €42 straightaway. If a grade is in the region of O when the animal is slaughtered, the farmer could also miss out on the quality assurance bonus of 12 cent per kilo, which is another €42.

If a farmer is in a producer group or a premium scheme, such as those for Aberdeen Angus and Herefords, he or she could also lose another 10 cent to 12 cent per kilo. That could be another €40 to €42 lost on the animal. I am not saying it is happening all the time. However, what I and ICMSA are saying is that while the potential is there, why would the farmers and livestock producers in the country not lose confidence in that system of grading? The ICMSA has requested that the Department carry out an analysis of grading both sides of a carcass. We should remember that farmers are paid on the carcass on three or four areas, including weight confirmation, fat trim and inspection bonuses, which are all different shapes and sizes. It is not too much to ask that in 2019 or even long before it that both sides of a carcass be graded so the farmer can be paid on the best grade that the animal makes.

As an example, young bulls may be killed and the result depends on how the hide is removed from the carcass, specifically how fast the hide puller removes the hide from the carcass. There could be different fat levels on two halves of a carcass from the same animal. There are too many anomalies. The ICMSA did a report on the system, and it was found by our consultants that €121 million was taken from farmers' pockets in the past eight years because of this. That is unacceptable for any farming industry in any country, let alone Ireland. I call on the Chairman and members of the committee to take that on board. I could go into a range of different issues but I know the Chairman has time constraints. I thank the committee for the time.