Meatsellers "surprised" at slaughterers' action

The Meatsellers Association, which represents 274 butchers, was astounded to learn through the media that no animals would be slaughtered for fresh beef at the abattoir yesterday.

The action was taken by the GRTU - Malta Chamber of Small and Medium Enterprises, to fight the decision taken by local beef producers, represented by the Milk Producers Cooperative (KPH), to raise the price of fresh beef.

The fresh-beef slaughterers and distributors were yesterday ordered by the GRTU not to buy live animals for slaughter, leaving butchers without fresh beef.

However, the association is insisting that the least anybody could have done was provide consultation so that the butchers would be prepared to face consumers.

"We learnt only through the media that no live animals would be slaughtered for fresh beef - the news came as an absolute surprise," association officials said.

The association said most butchers still had a supply of fresh beef available, since business was slow, so consumers should not be affected by this decision for a few more days.

A meeting between the GRTU and KPH is scheduled for Thursday in the hope of agreeing on an acceptable price structure before next Monday when butchers are next expected to buy their beef from the abattoir. The meeting is to be chaired Dr Philip von Brockdorff, permanent secretary in the ministry for rural affairs.

When contacted, GRTU director general Vince Farrugia said that in some cases KPH wanted to double the price beef distributors paid for the animals, which was unacceptable.

"The prices KPH is asking for go beyond the profitable margin of the distributors, who would have to step up their prices for the butcher, who in turn would have to charge the consumer more," Mr Farrugia said.

The GRTU is insisting that the price increases go against its agreement with KPH, signed in October 2002, which establishes the prices of cows and calves sold by farm owners for slaughter.

Mr Farrugia said the farm owners were trying to milk the situation by refusing to sell animals at the agreed rates.

"This is the last chapter of the protective age in Malta and the situation will no longer remain the same once we become EU members in May," he said.

Until 2002, beef distributors benefited from a Beef Intervention Scheme, which subsidised the price they paid to producers.

Since then, the government subsidy has gone to producers under the Dairy Compensation Scheme in conformity with EU regulations.

The GRTU is arguing that farm producers should not expect to benefit from the local captive market for fresh beef while still enjoying protection and being heavily subsidised by the government.

The GRTU is insisting that if no agreement is reached on Thursday, the government and the European Commission should reconsider the subsidies given to farm producers.

Farm producers had to face the reality that they could not continue to receive subsidies while pushing up prices for consumers and forcing distributors out of business.

When contacted, KPH did not wish to comment, saying instead that it would release a statement today.