The Irish Creamery Milk Suppliers’ Association (ICMSA) is calling on factories to explain the recent “farcical price cuts for prime cattle”.
The chair of the association’s livestock committee, Michael O’Connell has questioned the rationale behind the latest factory cuts.
He claimed that future of finishing cattle is now in question as a result of a series of sudden price cuts which he said has come “out of the blue”.
“All the evidence we have seen in the last couple of months has indicated that beef prices were heading for close to record levels and that was supported by Bord Bia figures indicating between 60 and 70,000 less cattle to be slaughtered in Ireland this year,” he said.
ICMSA
O’Connell said that farmers who are “doing everything by the book”, including producing lighter and younger cattle to the highest standards, are hugely frustrated.
He said that factories are increasing their profits while at the other end of the scale, farmers are exiting beef production because “the sums are not adding up”.
“Quotes of €5.05 to €5.10c/kg base price for steers and heifers are being offered but deals of up to €5.25c/kg base are still being paid.
“At the lower quote of €5.05, this will leave a P+3 frieisan steer at a price/kg of €4.75c/kg, a mere 35 to 40c/kg ahead of the price commanded by the same grade cow.
“How does this work? Can it be explained? How is this justifiable? The answer that farmers are coming up with is ‘No’,” O’Connell said.
Exports
ICMSA recently highlighted the importance of exports of finished cattle to Northern Ireland as well as Northern customers fuelling the mart trade over the past few months.
“The Northern feeders have a relationship and confidence in their processors, and they wouldn’t be travelling south of the border week-in and week-out if they weren’t making money.
“The contrast in the south is very obvious and is destroying the sector: There is no confidence or trust amongst farmers with our processors in the Republic,” O’Connell said.
The ICMSA Livestock chair appealed to factories to “show a bit of respect and courage”.
He urged processors to make a statement on how they have arrived these price cuts and why they are killing less cattle on a weekly basis.
“Farmers are fed up with listening to the age-old yarn of ‘there’s too many cattle, there’s no markets, trade is slow’. What will the next excuse be?
“As of yesterday (Wednesday, May 15), there is a new market open in South Korea, this is a sign that the demand for Irish beef is alive and well, but it needs to be reflected in the prices our farmers are receiving. And right now, it’s not being reflected in our prices”, O’Connell said.
The ICMSA Livestock chair advised farmers to “resist these price cuts and disrespectful quotes and explore their options over the next couple of weeks, whether mart or Northern outlets”.