Tánaiste publishes report into allegations of anti-competitive practices in the beef industry Independent group finds no evidence of anti-competitive behaviour

The Tánaiste and Minister for Enterprise, Trade & Employment, Mary Harney, has today (21 September, 2000) published the Report of the Independent Group which was established in January last to examine allegations of anti-competitive practices in the Beef Industry.

Following detailed analysis of the industry, the Group’s report concludes that they have found no evidence of anti-competitive behaviour either in the pattern of cattle prices or in profits. Indeed, the Report states that there is evidence from various sources that on average the industry is one of low profitability.

The Report also concludes that there is no scope for alleged manipulation of prices by wholesalers and retailers. The Group’s analysis consequently refutes the allegation that changes in farm-gate prices are not reflected in prices at retail level.

The Group also made a number of recommendations including one that the status of collective negotiations, as sought by the farming organisations in the dispute that led to the inquiry, be clarified in the context of competition law.

In announcing the publication of the Report, the Tánaiste said "I have accepted this recommendation of the Group and I will be asking the Competition Authority to let me have their views on the matter as soon as possible."

The Group also made a number of other recommendations as follows:

That an annual census of the economic performance of the food and drinks industry, as has been carried out in Northern Ireland since 1989, be initiated in the Republic.

That the Minister for Agriculture, Food and Rural Development should bring forward proposals designed to modernise the meat inspection system, and

That every means be used to promote integrated action in the food industry where farmer, processor and retailer work in harmony to meet consumer requirements.

In regard to these recommendations the Tánaiste said "My colleague Joe Walsh, The Minister for Agriculture, Food & Rural Development will examine, in consultation with the CSO, the recommendation relating to an annual census of economic performance in the food and drink industry. As regards the meat inspection service, considerable work has already been done to ensure the service best meets the growing requirements of food safety, both on the domestic and international markets. The recommendation of the Independent Group both on meat inspection and on greater integration within the industry will be addressed in the context of Government policy for the future development of the beef sector and in the light of legislative changes at EU level arising out of the Commissions White Paper on Food Safety."

The Tánaiste concluded "The Group has conducted a very detailed analysis of the issues and has reached clear and definitive conclusions. I would like to thank Kevin Bonner, who chaired the Group, Colm McCarthy and Professor Seamus Sheehy for their work. Their report is a valuable contribution to a better understanding by all parties of the dynamics of the beef industry."