IFA seek meeting on ‘riddle’ of beef price cuts
THE IFA have been in contact with all of the country's meat processors over the past 10-days in an effort to 'find out what's going on' with the ongoing cuts in factory prices for cattle.
At a time when the UK and international markets continue to remain very buoyant for Irish beef, factories have again this week put in place further price cuts.
Bullocks and heifers at the meat plants are averaging out at around €6.70/kg with tops of €6.80/kg, with rumours of further price cuts next week.
Galway IFA Chairman, Micheál Haverty, said that the IFA had been in contact with all of the major processors with a view to setting up a meeting with them to try and ‘get to the bottom’ of the price cuts.
"We are quite simply baffled as to what's going on. Irish farmers are producing a top-class, quality assured product which we know that there is a strong market for -domestically, in the UK, the EU and other countries.
"And yet we are now seeing a situation where the price being paid for cattle here in Ireland is falling behind the UK average by 20c to 30c per head. We just don't know what the factories are at," Micheál Haverty told the Farming Tribune.
He also said that winter finishers were being particularly hard hit by the latest round of price cuts with mart prices for heavier cattle also easing slightly.
Despite the factory cuts, Galway marts reported a strong trade for cattle in the past week with lighter quality cattle in demand as the summer grass buyers begin to appear around the ring - although the soft ground conditions have put something of a damper on that.
IFA Livestock Chair, Declan Hanrahan, has also hit out at the behaviour of meat factories in dropping prices for the most expensive cattle to produce - when Ireland's key export markets were very strong.
“EU beef prices have risen over 65c/kg since last June. Our prices over the same period have dropped almost 30c/kg, representing a turnaround of almost €1/kg.
EU beef prices have risen over 65c/kg since last June. Our prices over the same period have dropped almost 30c/kg, representing a turnaround of almost €1/kg.
"In the outlets for 90% of our exports, prices are almost 30c/kg above ours as EU and UK beef prices align. Both these high value markets have reduced production, so they need more imports.
“Winter finishers will not take this unacceptable behaviour lying down. Farmers have made huge investments in buying stock and finishing them for factories at the most expensive time of year, only to find themselves faced with weak selling and opportunism from factories,” he said.
Declan Hanrahan said factories and Bord Bia were continually telling farmers of the need for Quality Assurance to access the high-value UK and EU markets.
Last week, Gort Mart reported an outstanding sale at their Charolais Weanling Show. Here, Ch heifers made up to €7.13/kg and averaged €5.42/kg. Charolais bulls averaged out at over €5 per kg. Loughrea Mart described their weanling heifer trade on Saturday as being 'on fire'.