Retailers have indicated that, in some cases, they actively prefer dairy beef over suckler-bred beef, according to the president of the Irish Creamery Milk Suppliers’ Association (ICMSA), Pat McCormack.
McCormack made the comments in response to ongoing concerns among beef farmers that animals coming from the dairy industry are contributing to a challenging beef price.
The Tipperary dairy farmer asked: “Why are the factories still operating and supporting a price grid that specifically discriminates against animals coming from the dairy side?
We presently have a grid that won’t recognise that a growing percentage of the overall kill is coming from the dairy side.
The ICMSA leader outlined that some within the beef industry itself have acknowledged that “far from being less commercially valuable, dairy beef is now seen by some retailers as having specific advantages”.
“Against that reality, why are we still using a grid that operates on the basis of the exact-opposite position?” asked McCormack.
The president of the ICMSA concluded by pouring cold water on the “myth” that the collapse of farm margins and returns was the fault of the “upsurge in beef” coming from the dairy herd.
Cattle quotes still ‘stuck in the mud’
Meanwhile, cattle quotes have remained unchanged for the past number of weeks. This time last year, beef quotes were on the decline following a period of relatively higher prices.
Similar to last week, factory buyers are offering 375c/kg for steers and 385c/kg for heifers that are fit for slaughter.
In recent months, prominent beef finishers and suckler farmers have raised concerns relating to the price of beef. Many are fearful that their businesses are in jeopardy and there is no doubt that 2019 is a crucial year for the industry.
When it comes to the cow trade, 260c/kg is on offer for P-grade animals. In addition, procurement managers are starting negotiations with farmers for O-grade cows at 270c/kg and R-grading cows are hovering around the 300c/kg mark.