Irish Cattle and Sheep Farmers’ Association (ICSA) organics chair Des Greene has welcomed the increase in organic beef prices, but called for a further premium.
The increase to €7/kg, from a set price of €6.50/kg since June, put organic beef prices on par with conventional cattle prices.
"While this adjustment is welcome, it is unsustainable for organic farmers to receive the same price as conventional cattle when their costs are significantly higher," Greene said.
Greene said that it is "vital" that organic farmers receive a price premium to reflect the additional costs associated with organic production.
"Organic farmers must adhere to strict standards, including the use of organic meal, which is significantly more expensive than conventional feed.
"Currently, organic meal costs around €600/t for beef cattle. If organic farmers cannot secure a financial premium that reflects these costs, the entire organic sector is at risk," he said.
Greene said that organic farmers need to achieve a price of at least 15-20% more per kilo than conventional beef prices to remain viable.
"In the past, organic beef commanded an additional 70c to €1/kg over conventional beef, which was essential to covering the higher costs of organic production.
"This premium must be restored if organic farming is to remain an attractive and viable option for farmers. Farmers will not switch to organic if they do not see a financial reward for doing so.
"We need a pricing mechanism that ensures organic farmers are always paid a guaranteed premium over conventional beef prices. If we do not act now, the collapse of organic beef production is a very real possibility," Greene said.
Greene urged processors and policymakers to ensure that organic beef prices reflect the true cost of production. He said the next steps must include guaranteeing a secure "pricing model".