Factories have been accused of “manipulating the trade to fill their own feedlots”, by the chair of the Irish Cattle and Sheep Farmers’ Association (ICSA) .
Edmund Graham was highly critical today (Friday, September 29) of what he believes is a deliberate move by factories to “direct the trade” in their favour.
“Prices being pulled this week is a disgrace as there is no real justification for it. The average Great Britain price – England, Scotland, Wales – has increased by the equivalent of 20c/kg excluding VAT since the start of August.
“Meanwhile, after a few weeks of improved prices, factories are attempting to drive Irish prices to a new low for 2023. This is not acceptable,” Graham warned.
In his opinion factories “have their own reasons for pulling prices” but he firmly believes that this has nothing to do with market demand and more to do with “manipulating the trade to fill their own feedlots.”
He has accused factories of cutting prices “at the expense of ordinary beef farmers who have spent over the odds getting these cattle finished”.
Graham added: “We know that beef type animals have gotten scarcer in the marts, that supplies are tight, and that demand is buoyant, so it is outrageous that local suppliers cannot count on being treated fairly, especially when all market indications show that prices should be going up – not down.
“The fact that we are already well behind UK prices just adds insult to injury.
“Around 30% of the weekly kill is now coming from feedlots, which is almost one in three”.
He said that the numbers coming from feedlots has been growing steadily over recent years and “these numbers are being used more and more to keep a lid on prices”.
Graham said: “It is clear factories are using this tactic to pay farmers here significantly below what they should be paying for cattle.”
Meanwhile the Irish Farmers’ Association (IFA) has also called for beef processors to pay prices for cattle that keep pace with prices in the key markets for Irish beef.
The association has said that strong demand for beef in those key markets is driving prices at present.
Brendan Golden, the IFA’s national livestock chairperson, said that supplies of cattle for Irish processors are remaining tight.