The Irish Creamery Milk Suppliers’ Association (ICMSA) livestock committee chair, Michael O’Connell has called on factories to produce a “roadmap” for beef farmers on what trade and markets are looking like in the upcoming months.
This week’s factory quotes for beef cattle have continued with prices remaining on firm footing.
There was an expectation from most procurement staff that weekly supplies of beef cattle would have increased by now, but as of yet, it seems this trend has not materialised.
O’Connell said that despite “positivity” around current beef trade prices, it is being “undermined” by “mixed messages” coming from meat processors on carcass weights and steak size.
“We recently had a factory representative telling us that Ireland’s supermarkets don’t want striploin steaks from an animal weighing 420kg carcass weight because the consumer won’t pay for them.
“Almost simultaneously, we had another factory representative noting his concern around dwindling carcass weights of cattle over the last number of years.
“So, where is the sweet spot here? Can the meat processors make their mind up?,” O’Connell said.
Roadmap
The livestock chair said it is likely that some of the “big players” will return to the marts in the next few weeks to fill there feedlots for the run up to Christmas trade.
“Farmers drive the beef industry in Ireland and such a roadmap is the minimum required so that they (farmers) can plan accordingly for the immediate months ahead.
“The investments made here are just too big and costly to risk failure or lack of return on investment,” O’Connell said.
“The organic meat processors come out with a pricing model for six months at a time where they allow its suppliers to make decisions that best suit their farms. Why can’t conventional processors follow suit?,” O’Connell added.
ICMSA
There has been a “notable increase” in the number of finished and forward cattle in marts with heavy continental bullocks in the 700- 800kg weight bracket making in excess of €3/kg liveweight, according to O’Connell.
“I don’t believe factories don’t want heavy cattle as when those continental bullocks are fit for slaughter or potentially slaughtered straight out of marts, they most definitely will be north of 420kg carcass weight,” O’Connell said.
O’Connell said that beef producers have had a “tough year” between grass growth and fluctuating prices. He advised farmers with slaughter-fit cattle to explore all of the options before selling.