*Shannon based Asba Meats owe over €576,000.
FARMERS in Kilnamona and Kilrush are owed over €106,000 by a Shannon based meat operator.
Legislation that provides for the enforcement of payments to farmers from meat producers “could have come in years ago” according to a Judge who is also the daughter of a farmer.
At Ennis District Court, Judge Valerie Corcoran made her comment in an unfair trading practices (UTP) regulations case being taken by the Agri-Food Regulator against Shannon based Halal meat operator, Asba Meats Ltd and director, Tarequr Rahman Khan concerning 24 summons relating to an owed €576,386 at the outset.
Payments have been made to the farmers that have reduced the amount owed to just over €300,000 and solicitor, Marina Keane said that the case is being taken by the Agri-Food Regulator.
Ms Keane acting as legal agent for the solicitor for the Agri-Food Regulator told Judge Corcoran that the regulator monitors and enforces payments that are to be made to small agri suppliers by meat producers.
In response, Judge Corcoran commented, “As a farmer’s daughter I think that legislation could have come in years ago”.
Judge Corcoran added that she imagines that meat producers have also welcomed the legislation.
In the case, Ms Keane requested a day for hearing of the case and said that the case would take two hours in total. Ms Keane said that the application was being made on consent with solicitor, Colum Doherty for Mr Khan and Asba Meats Ltd.
When the case was last before the court in February, Judge Alec Gabbett commented that the farmers concerned then owed more than a cumulative €300,000 by Asba Meats Ltd were being repaid on a ‘drip-fed’ basis.
Judge Gabbett made his comment after solicitor, Colum Doherty for Asba Meats said that his client intends to pay the 10 farmers €1,000 each over next four weeks.
In a letter handed up to Judge Gabbett, Mr Doherty requested an 18 month time-frame to clear the total outstanding balance of €308,455.
In the letter, Mr Doherty has stated that “now that Asba Meats has moved past receivership, they are actively sourcing new contracts to stabilise cash flow. They remain fully committed to meeting their obligations to the remaining farmers”.
Requesting the 18 month time-frame Mr Doherty states that “we believe that this structured approach provides the most reliable path for the farmers to receive their full payments while allowing the company to return to operational strength”.
The letter stated that Asba Meats and company director, Mr Tarequr Rahman Khan wish to have it noted “that they appreciate the regulator’s role in protecting the interests of the farming community and wish to formally submit a proposal for the resolution of these debts”.
Judge Gabbett said that effectively the payments to the farmers are “being drip fed out”.
The letter stated that it “is it important to emphasise the ASBA Meats Ltd have recently emerged from a period of receivership following significant operational and financial difficulties.
The letter stated that “during this challenging period, they have remained committed to their supplies, successfully clearing the debts of a substantial number of farmers on our original list”.
The information Mr Doherty provided to the court showed that Denis Heffernan of Loughcurra, Kinvara, Co Galway is currently owed €91,639 while Fintan Keane, Ballyashee, Kilnamona, Co Clare is owed €59,662.
The third highest amount at €47,563 is owed to Kieran Kelly of Moneen Lower, Kilrush, Co Clare.
Solicitor at Fieldfisher Ireland LLP, Evan O’Brien for the Agri-Food Regulator told the court in February that slight clarity is required on some of the figures Mr Doherty presented to court.
However, Mr O’Brien said that he was consenting to the four week adjournment to allow the €1,000 be paid per complainant farmer.
He said, “My client will need to see a solid payment proposal with solid payments made to each complainant farmer after that.”
Judge Valerie Corcoran said that she would adjourn the case to June 11th for hearing where she has allocated the case a half day and priority.
