Supermarkets face price manipulation accusations

Jun 15 2009 by Karen Dent, The Journal

The current price gap between prime cattle of similar classification and quality in Northern Ireland and Great Britain is 22p a kilo or around £75 a head.

Mr Murnion said: “Over recent months the Northern Ireland cattle price has been constantly diluted by the importation of up to 920 cattle a week from the ROI, which is the equivalent of 13% of weekly plant throughput inside the Province, even though the adverse sterling-euro exchange rate has made them much dearer than our own cattle in sterling terms.

“Slaughterers obviously believe it is worth paying significantly over the odds for 13% of their throughput if its delivery suffocates the price of the remaining 87% and also dampens down prime cattle values on a cross-Britain basis too.”

He said that the most powerful companies supplied some of the UK’s biggest supermarkets and if they were unable to achieve the cheaper prices in Northern Ireland, they simply increased the number of cattle sourced from the Republic, where they are cheaper again.

“Beef farmers in Northern Ireland suffer most but those in Britain and the ROI are also victims because the origin of beef aimed at most of the UK’s biggest buyers is constantly manipulated, to make sure that tighter supplies in any of the three main cattle procurement pools are never allowed to translate into prices that accurately reflect the regional demand-supply balance,” Mr Murnion added.

Over recent months the Northern Ireland cattle price has been constantly diluted