The Irish Cattle and Sheep Farmers’ Association (ICSA) is advising farmers to keep their sheds empty this winter, unless there is an improvement in beef prices.
ICSA beef chair Edmund Graham said: “Unless beef prices start to improve, ICSA is advising farmers to seriously consider leaving sheds empty this winter.
“The price cuts we have seen since April are too much to bear for most beef farmers.”
The lowering price of beef in Ireland would mean farmers would be leaving the sector, without the need for a scheme, according to Graham.
The ICSA beef chair added: “It is an exit scheme in everything but name because farmers are being left with no choice but to get out anyway.
“Unless the meat industry reverses these cuts there will be zero incentive for farmers to feed cattle this winter.
“Last winter Teagasc said prices would have to hit €6/kg in the spring to cover our inflated production costs.
“We know now that prices did not even come close to that with steers peaking at around €5.25/kg in April and falling since. No beef farmer can afford a carbon copy of that come next spring.”
Price reductions
Reductions in the prices given to Irish beef farmers have been done so without a valid reason provided to farmers, according to the ICSA beef chair.
Graham said: “Producers are down over €200/head since the spring and we’ve been offered no legitimate explanation for that.
“All we can see is the difference between prices here and the Bord Bia export benchmark getting bigger and bigger, and we can see no sign of the meat industry having any interest in closing that gap and giving local suppliers half a chance.”
The Bord Bia beef market tracker shows that the Irish composite price is currently 19c/kg behind the export benchmark price.
“If the meat industry is serious about expecting cattle to be fed over the winter months, then they need to start with reversing the price cuts we have seen since April and committing to future prices that can justify expensive winter feeding,” Graham continued.
“There will be plenty of customers for silage next spring and selling silage will almost certainly turn out to be more profitable than risking feeding cattle with expensive meal.”