Meat factories "are determined to keep base prices down at all costs" for beef, one farm organisation has claimed.

The Irish Cattle and Sheep Farmers' Association (ICSA) has asserted that processors are "continuing to use every trick in the book to keep prices down, despite the scarcity of cattle and overall increase in demand".

Speaking this evening (Tuesday, September 21), Edmund Graham, the association's beef chairperson, said: "The reality is prices should be higher, given how hard the processors are finding it to get stock.

"However, what we are seeing is an effort by processors to keep the base price down, even if it means doing deals on bonuses or haulage costs," Graham claimed.

He said: "Reports are coming in from our members of bonus top-ups for Angus and Hereford in particular, whereby processors will choose to pay €0.30/kg and upwards of a bonus rather than increase the base price.

He suggested that some processors are offering to cover the cost of haulage "to keep a lid on the base price".

"It's important for farmers to be aware that this is going on and to fight for every cent available," Graham urged.

He also stated that factory agents "are very active" around mart rings.

Commenting on the rising cost of feed, the ICSA beef chair said: "Feed prices have been increasing across the board, which is piling on the pressure for winter finishers.

"These farmers will absolutely need €5/kg to justify feeding cattle from mid-November onwards, so as farmers we need to keep the pressure on the factories," Graham concluded.

Beef processors are extremely reluctant to move base prices forward and are – generally speaking – holding quotes at the same level as last week.

However, while base prices may be holding and respective Quality Assurance (QA), grid and breed bonuses are all still in place, additional bonuses are being offered in some cases to secure cattle without moving on last week’s base price.

Seven weeks ago, cattle price began to come back from its peak-price this year and 10c/kg was taken off heifers and steers over a two-week period, while cows have generally held at the same price.