FARMER: Meat factories must increase prices says IFA
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Thursday February 25 2010
IFA President John Bryan said the meat factories must increase cattle prices in line with returns from our main export markets as the current loss-making prices were squeezing the financial lifeblood out of winter finishers.
He said the facts are all farmers selling cattle are losing money at a base price of €2.90 - €2.94/kg and factories are putting feeders into an impossible situation with their banks.
"Beef factories must pay farmers a viable price for cattle or accept the inevitable consequences of a return to seasonable production, a reduction in the breeding herd and more live exports. If factories want to retain retail markets with a 52-week supply of beef, they must pay viable cattle prices to winter finishers. John Bryan warned the factories their low price short-term gain strategy is driving the beef sector back towards a major seasonality problem and encouraging live exports as the only option to secure profitable prices," he said.
John Bryan said with an additional 26,000 cattle processed in the first six weeks of the year, cattle numbers are beginning to tighten.
"Last week some agents were ringing feeders looking for cattle for killing the next day and enquiring about numbers over the coming weeks. Farmers must put maximum pressure on agents for an immediate price increase. Cattle prices in the UK are equivalent to €3.32/kg and prices across our main EU markets are ranging from €3.30/kg to €3.80/kg. Increased numbers of finished cattle are moving to Northern Ireland at prices of €3.13/kg for R grades," he stated.
Mr Bryan also called on the Department of Agriculture to reassure farmers regarding the accuracy and independence of the mechanical classification machines in the meat factories. He said the Department must reassure farmers and set out the independent audits they undertake on the mechanical classification machines to ensure that they are operating accurately and within the specified EU regulations.
