Beef farmers have more to be unhappy about now than they had in summer 2019 when the factory gate protests took place, according to the Irish Cattle and Sheep Farmers’ Association (ICSA).
Edmund Graham, the association’s beef chairperson, claimed that 2021 has seen “peak rip-off” of beef farmers by factories.
Speaking today (Tuesday, April 20), Graham said: “Although prices are now starting to head-up, we started 2021 with a steer price differential of 35c/kg compared to the UK. This rose to almost 75c/kg differential in the first week of April.
“Factory arguments about access to the UK retail trade cannot explain this extraordinary chasm.
“Given strong market demand, the reality is that farmers have more to be unhappy about in 2021 than in the summer of 2019 when the beef factory protests took hold,” he added.
The ICSA beef chair went on: “It is also clear that retailers are being let get away with outrageous profiteering when we know that retail beef sales in Ireland, UK and continental Europe are well up on 18 months ago.
“Current low prices, which are well below the published break-even price for winter finishing of €4.50/kg, must also be set in a context of escalating input prices,” he highlighted.
According to Graham, global demand for inputs is leading to higher costs for farmers. He cited fertiliser prices specifically, saying they have “rocketed” in recent months.
He noted that urea is now fetching 50% more on global markets than a year ago, with even larger increases observed for phosphates.
Graham also highlighted the increased cost of oil – which he said would impact on silage making costs – and the cost of steel, which is leading to the “cost of repairs or improvements rapidly getting beyond most beef farmers”.
“Ration costs are also heading in the wrong direction and if these trends continue, beef farmers will need €5/kg just to stay viable,” he argued.
“The re-opening of the UK food service and catering sector means that there is no more room for excuses. This is why I am insisting that beef factory bosses should give an explanation why our prices are so far behind the UK prices at a time of rocketing demand,” Graham concluded.