Quality Assurance bonus must rise to protect quality, says ICSA Beef chair

ICSA Beef chair John Cleary has said meat processors must increase the Quality Assurance (QA) bonus from its current 20c/kg if confidence in the system is to be restored.

“Factories have spent much of this year paying flat prices, where it has made little or no difference whether cattle were Quality Assured or not. QA status simply hasn’t mattered a jot, with out-of-spec animals treated the same as those meeting all the criteria. This approach has been an own goal by the industry, because it has stripped away any real incentive for farmers to maintain QA compliance. The scheme has, in effect, been allowed to go out the window,” he said.

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Continuing, Mr Cleary said, “A 20c/kg bonus is nowhere near enough to reward farmers who go the extra mile to produce cattle that meet every requirement of the Quality Payment System. Costs have risen and standards have tightened, yet the bonus has not moved in over a decade. Worse still, the way it has or hasn’t been applied in recent times has rendered it virtually meaningless as an incentive. Farmers are rightly asking why they should put in the extra effort and expense when the supposed reward has lost both value and relevance.”

Mr Cleary said the only way to restore farmer confidence in QA is to make it genuinely worthwhile. “That means a meaningful bonus - one that reflects the true premium value of what Irish farmers are producing. Currently, the 20c/kg QA bonus represents just 2.5% of the average carcase. ICSA believes this must increase to around 10% to properly reward farmers. That is the only level that will send a clear signal to farmers that the high-quality product they deliver is actually valued.”

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In addition, he said that the prospect of greater beef imports from outside the EU because of trade deals makes it more important than ever to differentiate Irish beef. “Our QA beef is produced to the highest environmental, traceability, and animal welfare standards. If we want to maintain market share and premium positioning, we must reward quality properly and consistently. The Irish beef sector prides itself on producing a supreme product. If processors want farmers to continue delivering that, then a fair and substantial QA bonus is now essential.”