Tom Elliott, the Ulster Unionists' Agricultural spokesperson and the MLA for Fermanagh and South Tyrone, has expressed concern at parts of the Varney Review on the competitiveness of the Northern Ireland economy.
Among its findings is that the Red Meat Task Force Report will have a devastating affect on farmers and the agriculture sector.
The Varney Report concluded that, due to high production and input costs and no commitment from retailers and processors to increase farm-gate prices, there was little prospect of an economically viable future for a suckler-origin beef or hill sheep farming model.
Mr Elliott said the Report suggests that current suckler-origin or hill sheep producers who wished an economic return would be significantly better off if they used their Single Farm Payment to transition towards diversification, or even towards an exit from the market.
He was speaking after a meeting of the Agriculture and Rural Affairs Committee.
"This Report is of grave concern to the entire farming community and, especially to those who produce suckler-origin beef and hill sheep.
"I know that farmers have been trying extremely hard to reduce their costs and increase efficiency but, with ever increasing input costs and a European-wide demand for cheap meat, it is proving extremely difficult. However, if we do not react to this Report and take co-ordinated and strategic action, the industry will not be able to recover. This would have a devastating effect on farmers and the entire economy of Northern Ireland".
SEMINAR
Mr Elliott said this was why the Agriculture and Rural Development Committee, of which he is vice chairman, had decided to organise a seminar to include representatives of the main players in the debate, farmers, processors, retailers and caterers.
"In Northern Ireland", he went on, " we are reliant on produce being exported and, once we lose those markets, it is extremely difficult to get them back. Similarly in Northern Ireland, we are dependant on a small number of processors who purchase products directly from farms. This means there is not enough competition amongst producers, so farm-gate prices are kept low'.
He said the North's farming community were also significantly reliant on subsidies, both from direct payments and community funds that are delivered through the Rural Development Programme for example. However, this reliance was exasperated by the UK Government's position on voluntary modulation.
"It puts us at a disadvantage compared to our European competitors. The Committee have made strong representations to the Department on the need to create a co-ordinated strategy to save this market in Northern Ireland. We have also written to our colleagues in the Enterprise Trade and Investment Committee in an attempt to implement consolidated action.
"We cannot let this section of the market fail as the consequences of producers and indeed the knock on effect for the entire agricultural sector will be very damaging."
