Beef farmers have been told that the “ball is back in their court”, with prices from processors “hardening”.
That’s according to Edmund Graham, the beef chairperson of the Irish Cattle and Sheep Farmers’ Association (ICSA), who said that the past week has seen “a marked change with factories actively looking for cattle, and quotes increasing by as much as 10c/kg”.
“It is now time for farmers to toughen when selling cattle and seek higher prices,” Graham added.
“Prices have been far below the level paid in our export markets for most of the summer and factories have taken excess profit. It is now time to claw back some of this.”
Citing Bord Bia’s market tracker for the most recent available week, Graham said that Irish prime beef prices have been 34c/kg behind the EU comparable figure, which, he said, cannot be explained away.
He said: “The last time we saw prices here on par with UK prices was back in January of this year. Since then, a significant price gap has opened, and UK prices have remained consistently higher than what is being offered to Irish producers.”
Graham added: “The most recently listed comparison on Bord Bia’s Beef Market Tracker – from August 12 – puts UK prices for prime R3 cattle at [a converted] average of €5.33/kg with Irish prices for similar stock languishing at an average of €4.66kg, excluding VAT. This is a staggering difference of 67c/kg or €240 on a typical 360kg carcass.
“This explains why we are seeing an increase in the numbers of cattle being bought at Irish marts and brought to direct to slaughter in Northern Ireland.”
According to the ICSA beef chair, beef producers are becoming increasingly despondent at not being paid a fair price.
“Morale is definitely low, but anger is growing too. It is shameful that there has been no acknowledgement from the processors that it is costing more than ever to produce beef. It is shameful that our beef farmers are expected to produce at below any recognised Teagasc cost of production figures,” he added.
This is occurring at the same time as escalating costs, Graham said.
He encouraged farmers to fight for the best price possible.
He said: “Each and every farmer who has dealings with the big processors needs to push hard for prices as there is more to be had than general quotes would suggest. It is still not enough but we need to keep the pressure on to close those price gaps.”