Cattle farmers urged to ‘strike a hard bargain’

CATTLE farmers have been strongly advised this week to ‘strike a hard bargain’ with the meat plants and the agents as supplies begin to tighten in the run-up to the Christmas period.

Heifer and bullock prices have steered steadily up to the €4/kg mark following the IFA’s long running battle with the factories that culminated in last month’s demonstrations outside the meat plants.

Galway IFA Livestock Chairman, Michael Flynn, told the Farming Tribune that all the indications pointed to a strong change in the balance of supply and demand over recent weeks.

“It’s more of a seller’s market now and we are strongly advising all farmers to bargain hard with the meat plants and the agents if they have cattle to sell.

“All the cattle coming off grass have now been sold, so supplies will be tight in the run-up to Christmas and into January as well. Farmers just have to shop around,” said Michael Flynn.

He also said that the weanling trade was very lively over recent weeks, helped by a solid live export trade, while the coming on stream of the second part of the Single Farm Payment was also a help.

IFA National President, Eddie Downey said the Christmas market demand for beef, especially in the main Irish market of the UK, was particularly strong, where prices had reached the equivalent of €4.75/kg for R3 grade steers.

He said with all of the ‘grass cattle’ gone at this stage, farmers selling cattle out of sheds needed to see prices rise, in order to make a margin. A lot of different deals on prices are being done to get cattle, ranging from a base price of €4.00/kg for heifers to an all-in price of €4.10/kg for R grade steers in some outlets.

IFA National Livestock Chairman Henry Burns said the Teagasc headline that beef farm incomes were down 5% in 2014, completely hid the real income crisis in the livestock sector and concealed the fact that the latest income fall comes on top of cuts in the order of 13% to 22% in 2013, when livestock incomes ranged from €9,469 to €15,595 per annum.

He said the stark reality of the situation is that most livestock farmers suffered a price cut ranging from €150 to €200 per head on finished cattle all year and lost money.