Farmers are being urged to resist the lower cattle prices from beef processors that have been seen in recent weeks.
According to the Irish Farmers’ Association (IFA), tight supplies of cattle and strengthening UK beef prices are underpinning the trade at present.
Brendan Golden, the association’s livestock chairperson, said yesterday evening (Monday, July 4) that “despite attempts by factories to offer lower quotes, strong resistance from farmers is returning paid prices of up to 15c/kg above quotes”.
“Factories are paying €5-5.15/kg base prices for steers and €5.05-5.20/kg for heifers, with higher prices for larger and specialist lots.
“R and U-grade young bulls are making €5-5.30/kg. Cow prices are firm, ranging from €4.60-5.00/kg,” he noted.
Golden also pointed out that Bord Bia has revised its slaughter figure for the year, predicting an increase of 100,000 animals from last year.
“This will depend very much on decisions farmers take in feeding over the coming weeks and months for cattle supplies in the back end and early 2023,” he argued.
“It is critical beef prices remain strong and reflect the realities of production costs on farms if normal supply patterns are to be maintained.
“Beef farmers will not and cannot be expected to take on the risks associated with finishing cattle for the winter without firm commitments on strong beef prices,” the IFA livestock chair stressed.
He called on farmers to reject the lower quoted prices offered by factories, saying that the supply-demand situation for beef in the UK and EU is “very much in our favour” as South American beef continues to be directed to the Chinese market.
This, according to Golden, is “creating a real opportunity for Irish beef in the key EU market”.
Golden’s comments echo those of the Irish Cattle and Sheep Farmers’ Association (ICSA), which said yesterday that beef farmers “are in dire straits trying to keep up with rapidly rising input costs”.
Edmund Graham, the ICSA beef chairperson, claimed that meat processors “will end up crushing farmers unless they start showing a bit of solidarity with their suppliers and support them through these tough times”.
“Meat processors should be following the example of many of the dairy processors who are looking at multiple ways of ensuring the viability of their own suppliers,” he said.
Graham argued: “Beef and suckler farmers have been left high and dry in terms of support from the processors.”