The director of Meat Industry Ireland (MII) has acknowledged the escalating levels of grievance beef farmers across the country are expressing on “unfair” price returns.
Speaking tonight on FarmLand, Cormac Healy stated that he is aware of the newly-formed Beef Plan Group 2018-2025, also known as the Beef Plan Movement; however, he rejected a number of claims put forward by the group – most notably assertions that factories are profiteering off the backs of primary producers.
“Certainly we are aware of the Beef Plan Movement and we’re aware of the significant coverage it has received in the media.
I suppose a lot of the issues raised in fairness are on the agenda and are in discussion and in dialogue in the sector.
“We are always open to dialogue and if there are new ideas or good ideas that add to the overall sector, certainly that can be looked at,” he said.
‘Sensitivity’
Healy moved to address contentions around “the unfairness of price” and return to farmers.
“I would say to the individual beef producer – be they suckler or finisher – that as an industry I think it’s unfair to have the very negative narrative around price delivery from the industry.
“Over the last decade the strategy for Irish beef, the marketing for Irish beef in terms of premiumisation and European markets and UK markets, has evolved to deliver on price.
“If we look at the current climate – and I know there is an extreme level of sensitivity around beef prices at the moment – the point is we are very much in line with where market conditions are at the moment.
The price today is equivalent to this time last year, overall year today price is up 1%.
Acknowledging that prices were particularly strong during the summer months, Healy said they have come back now because of market conditions.
“Price, as we stand, today is in line with what is happening in the market; it is inline with what is happening on the continent.
“If you look across a lot of the continental markets year-on-year their prices are behind, so there is a significant delivery at the moment on price – albeit and I understand that farmers are frustrated and would like to see an increase in price at this time of year.”
Increased kill
Although Healy recognises that farmers would have expected a price increase by now, he stated a lot more animals have been processed over the last couple of months.
One clear message I’m getting from industry is that stock levels held by companies are rising and that is a signal of weaker demand in the market.
“So, despite those challenges, what we are seeing is a stable price; prices have been stable over the last number of weeks or even two months despite a challenging market place,” he said.