The McKinsey Study, which was published in 1998, found that there is significant under used slaughtering capacity in the beef processing sector. It also concluded that there are considerable benefits to be gained from a rationalisation process leading to a better matching of capacity with actual requirements. The beef task force recommended that the industry itself should address this problem by providing buy-out facilities to expedite the rationalisation process, which would have regard to regional balance and competition for cattle.
The task force also recommended that significant public funding should be provided under the next round of the Structural Funds for the support of a major development programme for the beef industry in the context of a better matching of slaughtering capacity with cattle supplies. Under the national development plan, the Government has decided to give priority to capital investment in the beef sector.