Northern Ireland
Assembly

Paul Carlisle
Clerk to the Committee for
Agriculture and Rural Development
Parliament Buildings
Stormont
Belfast
BT4 3XX

Martin Stanley
Chief Executive
Competition Commission
Victoria House
Southampton Row
London
WC1B 4AD

5 January 2009

Dear Mr Stanley

DISPARITY BETWEEN BEEF PRICES IN NORTHERN IRELAND AND THE UK

The Committee for Agriculture and Rural Development, a statutory committee in the Northern Ireland Assembly, has expressed concern over the continuing disparity of beef prices offered to Northern Ireland farmers and those in the remainder of the United Kingdom.

The level of the disparity has increased alarmingly throughout 2008 as is evidenced in the tables attached. At the end of 2008, Northern Ireland R3 Steer prices were 256.6pence/kg, whilst prices for the same animals in England and Wales were 269.6p/kg and Scotland sat at 283p/kg. This represents a negative differential of 5% and 10% respectively in respect of Northern Ireland beef produce. A more severe disparity exists in respect of R4 Steer prices, with Northern Ireland prices being 22.2p/kg (8.7%) less than those in England and Wales and 32.6p/kg (10.87%) less than Scotland.

As you will appreciate, Northern Ireland farmers produce their beef produce to, at a minimum, the same exacting health and welfare standards as their counterparts throughout the remainder of the UK. They also similarly face increasing input costs and competition in a global market. They feel, however, that their ability to compete is being eroded as a result of these disparities and would seek the opportunity to conduct their farm businesses on a fair and equitable basis.

The Committee for Agriculture and Rural Development would, therefore, ask your office to investigate the disparities that exist in respect of prices being offered to Northern Ireland farmers and those in the remainder of the United Kingdom.

I look forward to hearing from you in due course.

Yours sincerely

Paul Carlisle
Clerk to the Committee for
Agriculture and Rural Development

Cc: Chairman
Deputy Chairman
Members