A possible move by factories to lower beef prices next week has “infuriated” farmers who are struggling with production costs, the Irish Cattle and Sheep Farmers’ Association (ICSA) has said.
Edmund Graham, the association’s beef committee chair, said prices need to “go up, not down”.
“The goal should be to get prices to at least the Teagasc cost of production figure of €6/kg, not drive prices down to even more unsustainable levels.
“After feeding intensively for the last three to four months farmers needed to see prices rising,” Graham warned.
According to the ICSA beef chair there had been assurances that farmers would be “adequately rewarded” when they went to sell, but Graham said the reverse has happened and prices have reverted back to where they were in December 2022.
“It is a desperate situation when you consider that the beef farmer is the one bearing all of the risk,” he said.
According to Bord Bia’s latest cattle and beef update, cattle supplies at export approved meat plants remained subdued at 31,666 head during the week ending May 14th, 2023 (Week 19).
“Total throughput for the year-to-date is 641,507 head, a decrease from 674,568 the same period last year.
“Prime cattle numbers have tightened so far in 2023 in line with Bord Bia forecasts while forecasts for cull cow throughput have been revised upwards to reflect the stronger than anticipated number of cows being processed,” the Irish food board outlined.
Beef price gap
The ICSA has queried why the gap between Irish and UK prices has not narrowed.
Graham said:
“A significant differential has opened up between Irish and UK steers prices in recent weeks, with UK prices about 33c/kg higher (VAT exclusive) at the moment.
“In the past three months, UK steer price has increased steadily by 35c/kg whereas our price has stagnated,” he added.
The ICSA also highlighted that in the last week there has been a major Irish presence at Asia’s largest food and beverage show – SIAL – in Shanghai and beef farmers will want to see results from this show.
The association’s beef committee chair said:
“It is vital that business done at this show translates into better prices for farmers.”
“Processors need to give their suppliers some real clarity around what is going on with beef prices; we are all tired of the conveyor belt of vague excuses they roll out as they slash prices – all of which have a very clear impact on farmers’ livelihoods and their very ability to stay going.”