The Irish Beef and Lamb Association (IBLA) has said that forward contracts are a “fundamental requirement” to insulate beef and sheep farmers in the supply chain.
The group was among those who attended the Teagasc winter beef-finishing event which took place at Kikenny Mart on Tuesday (September 13).
The event heard that budget guidelines indicate that a factory price of €5.85/kg (carcass weight) will be needed for farmers finishing continental steers to breakeven this winter.
A spokesperson for IBLA said that “there is nothing new being proposed for winter finishing of cattle”.
“Farmers will continue to be expected to carry 100% of the risk of finishing cattle this winter, with no forward contracts available yet.
IBLA said that supply contracts, including inflation and deflation clauses, should be a “fundamental necessity” before farmers commit to continuing production.
“In this new era in farming, it should not be assumed that farmers will continue as they have done previously, whilst carrying 100% of the financial risk.
“As Meat Industry Ireland (MII) were reminded during the beef protests in 2019, there is no obligation on farmers to sell cattle to processors.
“The wider food supply chain should appreciate that there is also no obligation on Irish farmers to continue to feed Europe at their personal loss.”
“Farmers need to evaluate, as the Revenue deadline for tax returns approaches, if they will have retained 100% of their single farm payment in the previous year.
“If they did not keep 100% of their single farm payment, they have handed over their money for someone else’s benefit in the food supply chain be it retailers, processors, feed and fertiliser merchants or agri-contractors,” the IBLA spokesperson added.
IBLA noted the advice from Teagasc to farmers about technical efficiency at farm level and the importance of high genetic merit in animals.
However, the group said that there was no information provided by Teagasc to compare the carbon footprint of beef produced in intensive meal-fed and extensive grass-fed systems.