'Manipulation' of farmers by processors 'disgraceful' - ICMSA
The Irish Creamery Milk Suppliers' Association (ICMSA) has called on beef processors to call off what is describing as the "charades" regarding ongoing price cuts and the messaging surrounding the beef trade post-Christmas.
ICMSA Livestock Committee chairperson, Michael O'Connell has said that the inconsistency from factories and "manipulation of their farmer population is disgraceful".
According to the association there have seen weekly price cuts of 10c/kg reported by meats plants over the past few weeks but in reality, farmers are not seeing a 10c/kg reduction in average prices reported and paid on a weekly basis.
According to Bord Bia figures, the average price reported for R3 steers for week ending December 6 was €7.32c/kg excluding VAT whereas the previous week was 6c/kg higher, O'Connell outlined.
On the other hand, the Department of Agriculture, Food and the Marine (DAFM) figures reported that the average prices of all steers slaughtered in ROI plants decreased by 4c/kg.
"You don’t need to be a mathematical genius to work out that neither of these figures equate to the factories reported 10c/kg price drop, so it is quite clear that it is it your average beef farmer taking the brunt of the price cuts with no cuts for feedlots.," O'Connell said.
"We are seeing this time and time again where factories are ‘cleaning’ farmers at the expense of their own feedlot cattle or independent feedlot units.
"There is a huge variation in quote prices this week. Some factories are paying €7.30 for bullocks this week, possibly bought since last week, while others are quoting €7.20 and as low as €7.10 for bullocks."
Call for Agri-Food Regulator to investigate pricing by processors
The ICMSA is now calling on the Agri-Food Regulator to investigate this further.
O’Connell added that over the past fortnight, "the rumour mill from agents and factory staff is an embarrassment from so-called people supposedly involved in the industry".
"The false claims that bluetongue virus will have an immediate knock-on effect on beef price is a complete misconception and the fact that factory agents have tried to profiteer from this is totally unjustified," the ICMSA chair said.
"Bluetongue has no effect on human health and hopefully the cases in NI will be isolated. The factory narrative has caused a bit more urgency from farmers to move slaughter fit cattle but there is no need for panic in this regard."
The farm organisation also claims that the rumour mill has continued regarding market conditions of late.
We know where throughput of slaughter cattle has fallen to versus the equivalent weeks in 2024 but saying that market conditions are the main reason needs an explanation," O'Connell continued.
"Understandably, factories are killing based on a plan of what salespeople need to meet orders, but I’m sure that the beef which is filling these orders pre-Christmas wasn’t just sold today or yesterday.
"Supermarkets and retailers are doing their business with processers three to six months in advance, so why not pay the market price which was being paid when these deals were made?"
The ICMSA argues that a 40c/kg drop in the past month or six weeks based on today’s average carcass weights for steers of 345kg equates to €138/head or for a load of cattle, close to €2,000.
"The interpretation of factories having lots of cattle, January will be a tough month, and cattle are going to be €7/kg base price after Christmas is an indication of the usual tactics factories apply when they feel a supply squeeze coming," O'Connell added.
"Bord Bia figures have been 100% accurate all along and credit where credit is due, they reviewed them later this year and have been on the money with their information.
"All indications show a further decline of available slaughter fit cattle based on a reduction of circa 60,000 calf registrations in 2024 and record export levels, it’s not going to be an easy ride for processors and ICMSA believes that the factories biggest fear is that they will be chasing their tails for finished beef, and while the bigger players blamed the smaller, independent processors for driving the mart and finished trade, they were all caught offside."
While global demand for beef continues and production levels are expected to drop, the ICMSA has said that numbers are not as flush as reported and has urged farmers to dig deep and demand fairness in the marketplace.
