Beef men seek probe into cartel

6 December 1999



Beef men seek probe into ‘cartel’

By Vicky Houchin

THE National Beef Association has asked the Office of Fair Trading to investigate farmers claims of a cartel between beef processors in Northern Ireland.

The Association has asked the OFT to help explain why prime cattle prices in Northern Ireland are allegedly 11% less than the English value.

Although beef animals in northern Ireland are similarly bred to those in Britain, about 80% of their meat is sold on the British market.

The association says it is puzzled because standard grade R4L cattle in Northern Ireland are making just 160p/kg deadweight compared to 180p/kg in England.

British beef producers have suspected for a long time that their prices are unfairly undercut by cheaper Northern Irish beef.

But this is the first time that they have officially lodged an inquiry with the OFT.

“We have asked the OFTs Cartels Task Force if they can assist by finding an explanation,” said Robert Forster, NBA chief executive.

Mr Forster claimed that the Northern Irish beef industry is dominated by just five companies which could be having a detrimental knock-on effect on British farmers.

“Their prices, as reported by the independent Livestock Marketing Commission, rise and fall in unison with little or no immediate evidence of competitive quoting.”

Mr Forster claimed that any price-fixing system which resulted in cheaper beef being purchased from Northern Ireland could push down British cattle prices.

He has told the Task Force that the NBA has done its best to accurately compare prices in Northern Ireland and Britain.

NBA analysts have calculated that Northern Irish beef is available for a 10-12% discount, currently worth about £60 on a 320kg steer carcass.