Vol. 438 No. 7
36 Mr. Harte asked the Minister for Agriculture, Food and Forestry if his attention has been drawn to the fact that beef factories reduced the prices they paid for cattle immediately the EU export refund on beef to third countries was reduced on 4 February 1994, despite the fact that export refunds are prefixed; his views on whether any anti-competitive practice is involved; and if he will make a statement on the matter.
Cattle prices have remained remarkably buoyant over the past twelve months. Prices had been expected to fall as a consequence of the 5 per cent intervention price reduction last July. The increased premiums were designed to compensate for such a price fall. However, cattle prices did not fall and for most of 1993 were running considerably higher than the previous year. In fact, in January 1994 prices were about 12 per cent higher than in January 1993. While prices have weakened somewhat this month, it would be difficult to attribute that solely to any one of the many factors that can influence price trends. The effect of export refunds, including pre-fixed refunds, on the price of cattle in a particular period depends on, among other things, the proportion of the kill designed, during that period, for markets to which refunds apply.
