I thank you, Sir, for selecting this Adjournment matter because it is very important that we address the difficulties in the beef industry. Protests are taking place outside many factories. In County Roscommon protests are under way this week outside the Kepak factory in Athleague. There should be a full examination of the relationship between the beef processing industry, farmers and the providers of stock. The protests have not received much attention because of the Nice treaty referendum campaign.
The European farming industry has suffered in recent years. The BSE crisis and foot and mouth disease outbreak were the main causes of the hardship. While matters appear to have improved on the Continent, Irish farmers continue to be quoted low prices for their beef by the beef processing industry. Recent market trends appear to suggest that the price of beef should be rising. The UK market is very active and across Europe cattle prices have increased by €40 per head since July and demand for Irish beef has been very strong.
The recent lifting of the six county Russian ban provides market access for an additional 36% of our live cattle, although, because it is a very difficult market, this opportunity is not being fully exploited. The Egyptian market is not providing good access whereas at one time it took 100,000 tonnes of Irish beef. The price of approximately 81p per lb for quality stock is exceptionally low and not viable. The Minister of State is very conscious of prices, knows the business well and will be concerned about this trend.
I also appreciate that processors are facing tough margins. The prices paid by the factories this September are 13% lower than those quoted in September 2000. It appears that the only response for the meat factories following the positive news of the lifting of the Russian ban was to cut prices again. In fact, prices have fallen by €95 per annum since July and, at least according to the IFA, only for the farmers' protest the factories would have dropped prices further. These price cuts have left Irish farmers in the position where Irish beef prices are the second lowest in Europe and where prices quoted across all factories and processors in Ireland are, coincidentally, identical.
It is clear that the beef processing sector continues to be dominated by a number of key players and that proposed reform may further tighten their control. While there are reports of no cartels within the industry, the end result is the same for farmers. I spoke to some factory owners today and they assured me that there are no cartels. I call on the Tánaiste and Minister for Enterprise, Trade and Employment to address this issue and again direct the Competition Authority to investigate the alleged anti-competitive pricing structure within the beef industry. It is clear that efforts to improve the position of farmers in recent years have failed.
The IFA has organised protests outside the factories. I spoke to its president, John Dillon, last Wednesday. The IFA should debate the issues within its organisation, not in public. It should make contact with the Government and processors. This should be a co-operative movement in terms of the issues affecting farmers. I do not believe in confrontation, there should be consultation. The IFA relies on the industry to provide an income through the levy system which we, as farmers, are providing. It faces a conflict where it is protesting about prices, yet it collects a levy when beef goes through. For example, the price quoted on organic food is approximately 110p per lb, which is acceptable and indicative of a competitive business.
The industry tells me it has no concerns about showing its books to the Competition Authority. It would allay the fears of the IFA and producers if an independent organisation, such as the authority, was prepared to examine the books of the industry to ensure there is genuine competition between the factories involved. We in County Roscommon are fortunate in having processing plants in Athleague, Roosky and Ballaghaderreen. They have provided good employment and an excellent service for farmers. The Kepak plant in Athleague is in my parish. It brought about a revolution in the business where farmers are paid on the day, unlike the situation outlined by Senator Scanlon, where farmers are owed money. It is one big benefit that accrued following the impact of Noel Keating and the Kepak organisation.
I live on a farm and work with the farmers in my area. They are deeply concerned. Unless prices increase they will not be there in the future. Processors will be affected because, without the raw material, there will not be a processing industry. That is the reason I appeal to the industry and the IFA to try to negotiate a viable price for a quality product. As my party's former spokesperson on agriculture in this House, Sir, you know we have the best beef in this country. We need to see a fair price being given to producers.