A Co. Louth-based TD has said he firmly believes it is time for the beef manufacturers and the beef producers to “become friends and deliver what is needed for this industry, which is forward pricing”.
Fianna Fáil TD for Louth and East Meath Declan Breathnach spoke in the Dáil on Fianna Fáil’s motion on the beef crisis in agriculture.
Breathnach said: “It is as simple as this; if a farmer has price certainty in expectation from calf to beef he can adjust his cost base.”
He believes a forward pricing arrangement is “achievable”. He remarked: “From a farmer’s perspective, a poultry farmer in Poland can fix his price 12 months in advance and a grain farmer in Ireland can forward sell his grain.
The main stakeholders – the beef producers, the manufacturers and the purchasers – are indicating that they are up to doing this.
“What is needed to make it happen is proper coordination and assistance from the department and the representative farming groups.”
Breathnach added: “The farming community is not seeking a handout; it is seeking the minister’s commitment to support them, and to explore the necessary measures to make it viable.”
The Louth TD explained: “Minister Creed in the Dáil said that he agreed with my suggestion regarding forward pricing. He outlined how producer organisations, negotiated contracts and strengthening the position of farmers in the supply chain will be explored.
“The minister outlined that in this regard his department has approved a number of organisations to act as facilitators for producer organisations.”
Highest kill in 15 years
Breathnach drew attention to the difficulties faced by beef farmers last year. He said: “In 2018 we had the highest kill in 15 years, with 1.8 million cattle – 80,000 more than in 2017.
“Obviously those increased numbers have had an impact on both supply and demand. The perfect storm has been brewing and the minister has known about it for a long time.”