McDonalds confirms no final residency or retention period required for cattle prior to slaughter

Similar confirmation received by ICOS from Tesco in June

ICOS Marts Committee Chairman Michael Spellman, ICOS Marts Executive Ray Doyle, Martin Walsh of Aurivo and John Humphreys of Cork Marts met yesterday with representatives of Meat Industry Ireland to discuss current meat industry rules on cattle residency and retention periods on farms prior to slaughter. Leaving the meeting, Michael Spellman described the exchange of views as ‘constructive’ where a commitment was given by Meat Industry Ireland to consider and respond to important matters raised by ICOS.

ICOS conveyed the serious concerns of co-operative marts and their 95,000 shareholder members at current measures in place at factories which unnecessarily go beyond the provisions of the Bord Bia Beef and Lamb Quality Assurance Scheme.

Factories currently require Irish cattle to reside for a continuous 70 day period on their last farm prior to slaughter. They withhold a Quality Payment System bonus of approximately €50 per animal (as a penalty) if this is not complied with and they also withhold it if cattle have had more than four farm residencies prior to slaughter, even if all farms to which the animals resided are quality assured.

Meat Industry Ireland maintains that this is due to consumer requirements whereas ICOS contends that it is a somewhat unnecessary and trade distorting measure.

However, yesterday ICOS provided information to Meat Industry Ireland where McDonalds Restaurants have confirmed to ICOS that McDonalds do not stipulate any provisions above those of the Bord Bia Beef and Lamb Quality Assurance Scheme. McDonalds effectively does not require any final residency or retention period for cattle prior to slaughter.

The national Bord Bia Beef and Lamb Quality Assurance Scheme allows for free movements between any number of quality assured farms during the final 70 day period. It does not require a 70 day continuous residency on the last farm prior to slaughter. This also facilitates the free trade of factory fit animals in livestock marts.

However, the meat industry Quality Payment System has led to a situation where mart traded animals do not qualify for the bonus. As a result, the trade in marts, of slaughter fit animals has been greatly reduced.

The volume of factory-fit animals going to slaughter via a livestock mart has decreased significantly and there is also an ongoing decrease in the cull cow trade in marts. Since the introduction of QPS, 8 years ago, only 2.48% of factory fit animals are now being traded in a mart. The 70 days residency stipulation is also affecting forward store sales in marts.

McDonalds and retailer Tesco are the two biggest buyers of Irish beef.  ICOS obtained confirmation in June that Tesco’s final farm residency requirement for cattle prior to going to slaughter in meat factories is just 20 days of continuous residency on the last quality assured farm before slaughter.

The factory QPS bonus is 12 cents/kg or approximately €50 per animal. ICOS contends that this may be construed as a form of price fixing for fat stock sales as a farmer loses this payment if an animal has been traded through a mart in the 70 day finishing period prior to slaughter.

The requirements of the major beef buyers do not reflect requirements as stated by the meat factories.

McDonalds purchases some 40,000 tonnes or approximately €110m worth of Irish beef annually (10% of Irish output) which it uses in its Irish restaurants and exports across European markets where 1 in 5 McDonalds burgers sold is of Irish origin. Tesco purchases approximately €177m worth of Irish beef annually.

ICOS (the Irish Co-operative Organisation Society) represents co-operatives and organisations in Ireland – including the Irish dairy processing co-operatives and livestock marts – whose associated businesses have a combined turnover in the region of €14 billion, with some 150,000 individual members, employing 12,000 people in Ireland, and a further 24,000 people overseas. Outside of ICOS member co-ops, it is estimated that over 3 million Irish people are members of at least one co-operative.

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