Michael Harty (Clare, Independent) | Oireachtas source

The main issue in this crisis is that farmers are not getting a price that comes near to covering their production costs. They are making substantial losses. That is recognised by all, including the meat factories. Meat processors are making a substantial profit. They have been allowed to gain a monopoly, which allows them to control and dictate prices without any reference to the producer. They can manipulate the price by using their feedlots. There is a need to have a recalibration of the financial imbalance that exists in the market. That recalibration needs to bring a sustainable price to the producer and both sides should be allowed to make a reasonable profit.

The existing model is not sustainable. There is fair trade in many parts of the world. There is fair trade in coffee and in the production of fruit in countries that are much poorer than ours yet we do not have a fair trade policy in respect of beef production. Last night, I spoke about meat producers operating a financial blockade at their factory gates. That is an invisible blockade. It is just as damaging as the visible blockade by the farmers protesting outside the gates but that financial blockade is just as damaging to the meat industry as the farmers' blockade at the gates.

The price for cattle needs to match the cost of production. Bonus payments will not solve the problem. They are variable. They can be changed at a whim. Many farmers do not qualify for them. They do not ensure the cost of meat production and many of the criteria used are meaningless. Blaming the weakest link in this chain, which is the farmer, for this crisis is wrong.

See this speech in context