'Market returns alone will not maintain suckler/beef sector' - Golden

The outgoing Irish Farmers’ Association (IFA) national livestock chair, Brendan Golden, has warned that “market returns alone” will not maintain the suckler and beef sectors, and that beef farmers “must see direct supports continue to be built on through the Common Agricultural Policy (CAP) and national exchequer payments”.

In a review of the beef sector in 2023, Golden, the outgoing IFA livestock chair, told Agriland “direct financial supports are vital for the viability of Irish suckler and beef farmers”.

He highlighted that “the scale and low-income levels in the sector do not provide the capacity to absorb the levels of input and production cost increases we have seen over the past few years”.

“The suckler and beef sectors in Ireland are key natural resources that must be recognised and respected for the broader societal contributions, in addition to the role played in producing food to the highest and most environmentally-sustainable standards.”

Looking back on 2023, the IFA livestock chair said it was “a challenging year for suckler and beef farmers, as weather and input prices remained highly impactful on incomes”.

Changes to the CAP with the Basic Income Support for Sustainability (BISS) commencing this year hit “the most productive suckler and beef farmers hardest”.

Beef price

Commenting on 2023 beef prices, Golden said: “The average Irish composite price to-date in 2023 is €4.92/kg, up 21c/kg on 2022 levels, with the Prime Export Benchmark price rising only 8c/kg in comparison.”

He said increased levels of beef exports to the UK market during the year was “a significant driver” of beef prices.

He said the UK market remains “the single most important outlet for Irish beef”, and warned that the longer-term impact of the UK – Australian trade deal is “a real concern for beef farmers”.

He continued: “The next most important market for Irish beef is the EU. On-going trade deal discussions in this area have the capacity to disproportionately impact on Irish suckler and beef farmers.

“IFA strongly rejected the advance of these trade deals that will allow additional access to our key markets for beef, including Mercosur, NZ and Australia.”

Live exports

He acknowledged that live exports “provide vital competition for farmers”, and said that a key work area for IFA over the year has been “ensuring we continue to have access to this outlet for calves, weanlings and store/finished cattle”.

He said live exports have performed “very strongly” this year, with export figures operating over 12% higher than the same period in 2022 at over 318,000 head.

“The positive momentum can be attributed to the tightening of cattle supplies across the EU with very positive feedback from customers on the quality, health status and performance of Irish animals when they reach their destination,” he added.

Suckler schemes

Golden noted that a funding allocation of €52 million was provided for the Suckler Carbon Efficiency Programme (SCEP) scheme in 2023, with a payment of €150/cow available on the first 22 cows and €120/cow on the remainder.

He outlined that a further €28 million in funding was allocated to the National Beef Welfare Scheme (NBWS) for 2023, with a payment of €50/cow.

Golden said “it was extremely disappointing” that the Minister for Agriculture, Food and the Marine, Charlie McConalogue included the IBR measure in the scheme.

“IFA strongly rejected the inclusion and requested amendments to the scheme to avoid leakage of monies.

“Only 40% of farmers chose to complete the measure, which has resulted in a significant portion of important funding lost to suckler farmers.

“The mistakes in this scheme cannot be repeated. Commitments provided by the minister of a €200/cow payment for 2024 must deliver the payment in-full to farmers in the schemes for all of their cows with minimum leakage, by ensuring the measures are practical to implement and add value on the farm,” he said.

Food Vision beef and sheep group

Golden said the IFA participated in the Food Vision Beef Group throughout 2023 but “did not sign up to the report due to the absence of any additional funding commitment from the minister to provide long-term economic viability of suckler and beef farms”.

Brendan highlighted the need for “concrete funding measures” that directly contribute to the economic stability and growth of the suckler and beef industry.

He said: “The IFA made a joint beef and dairy submission to the Food Vision process based on providing long-term financial viability for the suckler and beef sector, while addressing the concerns around dairy-beef calf welfare and rearing viability.”

PGI

Golden said that Ireland achieving a Protected Geographical status (PGI) status for its beef within the EU “holds immense significance for the countries beef sector”.

He believes that the PGI status will “acknowledge and protect the unique qualities and characteristics of Irish beef, tying them to the geographical origin of product”.

“The PGI designation can contribute to increased market value, reinforcing Ireland’s position as a producer of premium beef products within the broader European context,” he continued.

However, he said “attaining the PGI status for Irish beef must add value at the farm gate and as farmers, we must see the benefits in higher beef prices”.