Slaughterers' action 'surprises' cooperative too

The Milk Producers Cooperative (KPH) has expressed surprise at the action taken by beef slaughterers on Monday, when no animals were slaughtered for fresh beef.

The action was ordered by the GRTU - Malta Chamber of Small and Medium Enterprises to fight the decision taken by local beef producers, represented by the cooperative, to raise the price of fresh beef for the distributors.

On Monday, the Meatsellers' Association, which represents butchers, had expressed "absolute surprise" at the slaughterers' action.

The KPH said the action was detrimental to producers, butchers and consumers and complained that it had not received any prior warning. In fact, during a meeting on January 8 between the cooperative and the slaughterers it was felt that a basis for agreement had been reached, the cooperative said, adding it had even organised meetings for its members in Malta and Gozo in order to approve the proposals and prices.

As the representative of the milk producers, it had no interest in seeing an increase in the price of local fresh beef for the consumer, even more so in a situation where the local producer must compete with beef products imported levy-free within the EU's liberalised market.

The direct payments given in connection with local beef, namely the beef premium and the slaughter premium, were also extended to the producers in the European Union member countries in line with the Common Agricultural Policy, KPH said.

Without such compensation, the price that the local producer was getting from the slaughterers would be much lower than the one established 10 years ago as the reasonable price to cover the risks and expenses incurred by the producers.

The price that the producer received on the market depended mostly on demand and the competition. This was why it was not in the interest of the producer to see an increase in the price of the local fresh beef for the consumer.

The KPH said that one must also understand that while the slaughterers wanted a fixed price from the producer they did not offer any guarantee that they would buy all the beef at that price. This threw the burden of the risk on the producers who had to face the uncertainties of the market.

The cooperative maintained that, contrary to what had been stated by the GRTU, during the term of an agreement which expired last September, KPH, through its subsidiary Malta Beef Co. Ltd, had always been paid by the slaughterers and it always paid the producers only the price that was agreed upon. This was still the case even though the agreement had expired.

The cooperative said it was doing its best for its members and the slaughterers to continue to have an equitable agreement that would benefit both sides and be in the interest of the consumers.