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Rosderra Refuses To Give What's Due

by 5m Editor
4 March 2008, at 1:16pm

IRELAND - Michael Maguire, Chairman of the IFA Pigs and Pigmeat Committee led a delegation to meet with the new Rosderra pigmeat company yesterday (Thursday).

The meeting was requested by producers in order to give the Glanbia buy-out team the opportunity to inject some confidence back into the flagging pig industry at this time of crisis.

Mr. Maguire said that the company has consistently paid less than their competitors in the south, arguing that the market could not yet cope with increases.

"The company is in a dominant position, with half of Ireland’s slaughter pigs moving through one of the Rosderra plants on a weekly basis,” he added.

No to Price Increase

At the meeting there was no contest from either party in terms of the market beginning to turn, but Rosderra management said that it could not increase prices at this time.

What angers producers is that both consumer and wholesale pigmeat prices have risen considerably in the past month and other processors in the Republic passing this back to their suppliers.

Mr. Maguire commented “There is no argument that the current crisis is an EU-wide problem, but when you look at the figures closely, it does not make sense that Glanbia/Rosderra have on average paid 2c/kg less (according to the pig league recorded since last November) than others in the Republic of Ireland and the EU average since November 2007.”

A member of the delegation highlighted that by selling 400 pigs a week to other processors over Rosderra would have meant being €7,000 better off since November. This situation is completely ridiculous.

Glanbia producers have stood loyally by the processor throughout the difficulties of the last year and are now being punished by having to watch their competitors in the EU, North of the Border and even in the Republic receive the benefit of a rising market, Mr. Maguire said.

Where is the Support

Banks and feed companies are putting considerable pressure on producers. These organisations are in contact with their EU counterparts and have seen the increases being returned back to the producers. The banks and feed mills are asking the same question as the producers ‘Where is the increase for the Irish producer?’

“Rosderra as the dominant player in the industry must now demonstrate to their suppliers that they have the capability to drive this industry forward. Sitting on price increases that are being passed back elsewhere will destroy the faith in the company that was built up in the past” Mr. Maguire concluded.

IFA have been on a campaign to ‘reclaim the home market’ since last Autumn. This campaign will not only continue but will be ramped up. Despite all the activity and increased awareness of the Origin Ireland logo, pig producers have not seen the benefits and are still losing over €25/pig.

5m Editor