The Irish Cattle and Sheep Farmers’ Association (ICSA) has demanded that meat processors be held to account over beef price reductions in recent months.
John Cleary, the chair of the association’s beef committee, said that “the actions of meat processors throughout the summer regarding the management of beef prices are nothing short of disgraceful”.
“They persist in using weak arguments in an attempt to justify unjustifiable price cuts and refuse to consider contract prices under any circumstances.
“We in ICSA are demanding transparency from meat processors about the future direction of prices as we head into the back end of the year, especially since they know exactly what prices they are receiving from retailers,” he said.
ICSA
Cleary said that it is now clear that farmers can no longer rely on their Basic Income Support for Sustainability Scheme (BISS) payment to support beef production.
“We have now reached a point where each sector must depend entirely on farmgate prices to determine the survival of their enterprises,” he said.
The ICSA Beef chair said market analysis shows beef imports into the UK are up by 11% this year, with most of that extra beef coming from Ireland.
“Meanwhile, production here is down on last year, which should all add up to better prices, not price cuts. There is simply no logic to excuses the processors are trying to peddle.
“Meat processors must be held accountable and provide clear, honest answers about the trajectory of beef prices,” he said.
The Teagasc National Farm Survey, published yesterday (Tuesday, July 23), shows that income for beef finishers and farmers with cattle (other than suckler and dairy farmers) declined by almost one-fifth in 2023.
These farms had an average family farm income (FFI) of €14,735, a 19% drop on the 2022 level.
The proportion of “cattle other” farms reporting an FFI below €5,000 increased to 38%, up 12 percentage points compared to 2022.
“The National Farm Survey 2023 results released yesterday have made it abundantly clear that incomes are so low many beef producers will simply not be able to continue unless these big processors treat their suppliers in a more just manner,” Cleary said.