Recent market developments are at odds with the “negative and unnecessary” messages from factories and their agents on beef price, according to the Irish Farmers’ Association (IFA).
IFA National Livestock Committee chair Brendan Golden said that Bord Bia Prime Export Benchmark Price has steadied and strengthened in the past three weeks, “moving 16c/kg above our price”.
“This movement in the export tracker is a clear indication of market conditions in our key beef markets, the UK and the EU, and must be reflected in beef prices by factories,” he said.
Beef price
Golden said that “opportunism by factories on beef price will not be tolerated by farmers” who are already grappling with unprecedented production costs.
Supplies of finished cattle are tightening considerably on the ground, he added, with throughput over recent weeks dropping by 1,400 head.
Based on supply projections for the year, the IFA chair said that there will be over 30,000 fewer cattle available to factories over the coming months.
“Farmers should not buy into the factory narrative on price. Very few cattle have been bought at this week’s lower quotes and it is important farmers take back control and sell hard.
“The prices they are prepared to pay is very evident in the competition between factory agents in marts where finished and forward store prices are freely exceeding factory quotes,” he said.
Golden also said there is a “key role” for Minister for Agriculture, Food and the Marine, Charlie McConalogue in helping the beef sector.
“The minister has at his disposal two significant funds to assist suckler and beef farmers, the Brexit Adjustment Reserve (BAR) and the recently-announced additional EU Commission supports, which can be built to €28.5 million.
“Both of these are for the purpose of supporting suckler and beef farmers in dealing with the current issues on farms; the impact of Brexit trade deals; and costs of production,” he said.
“In the first month of Australian access to the UK market, they have strategically targeted the high value cuts, supplying almost 25% of our average monthly supply of steaks to this key market.
“At the same time, bureaucrats and politicians at EU level are intent on forcing through a Mercosur trade deal that will have a disproportionate impact on Irish beef farmers by facilitating an additional 99,000 of tariff free beef from South America into the EU market,” Golden said.