U-grade beef in Ireland does not get enough of a bonus on the grid at meat plants, according to general secretary of the Irish Cattle and Sheep Farmers’ Association (ICSA), Eddie Punch.
He was speaking on the latest episode of the AgriFocus podcast on Agriland, where he discussed the current state of the suckler sector and its prospects for the future.
Punch said that suckler beef, reared on a grass-based diet is not receiving the premium it deserves in Ireland, compared to other countries such as Italy.
“It’s true that suckler numbers are in decline. Some of that is linked to the ending of milk quotas. Some of the bigger farms switched over to milk or got into enterprises related to milk,” Punch said.
“We have to face the fact that there are profitability difficulties in the suckler sector. The reality is that a lot of suckler farmers have seen the value of their direct supports come down.
“But we also have to look at the bigger picture in terms of the price of beef. This has been a huge challenge for the suckler sector because the profitability of people who buy their weanlings is hugely important and of course some suckler farmers finish their cattle as well.”
Punch said that one of the most important elements needed to ensure the sustainability of the suckler sector is to implement a specialised marketing strategy for suckler beef.
“There has been €6 million allocated to a suckler brand strategy but, in our view, it’s going too slow,” he continued.
“We’re not convinced yet that there is enough buy-in from meat factories to really try and drive a premium market for a natural grass-fed, but also a naturally reared animal.
“You have to look at the grid as well. U-grade cattle in Ireland do not get enough of a bonus, when you consider their much higher yield of meat… there is a lot higher yield of the high-value cuts as well.”
Punch explained that when you compare top-quality suckler type beef, it’s more valuable in other European countries such as Italy and France, claiming that there is a fundamental structural problem in terms of pricing in Ireland.
Suckler farming
The ICSA representative told the podcast, that suckler farming already lends itself to the type of production system which is more environmentally sustainable for the future.
“Suckler farming is less intensive, that’s good in some respects. It’s also vitally important to the smaller scale farms and broken-up farms where farms are fragmented; those kinds of farms can’t get into dairying and don’t want to anyway,” Punch continued.
“So, it’s really important from the point of view of the west of Ireland in particular, but also a lot of regions in Ireland, that we have a vibrant suckler sector and it’s a really important part of our beef business.”
Punch said that there is some negativity surrounding the suckler sector and there is also an age profile problem.
“As people get older, suckler farming is not easy. Those are realities,” he admitted.
“But on the other hand, we [ICSA] want to see a vibrant suckler sector because we don’t want suckler farming to be seen as some sort of ‘quick fix’ for climate change demands; that’s not really a win-win solution.
“When it comes to climate, we need win-win solutions, because at the end of the day, there is a huge global demand for quality protein and the suckler herd is part of that,” Punch stated.
You can listen to the interview with Eddie Punch in full on the AgriFocus podcast on Spotify or Apple Podcasts or by clicking here.