Meat plants plough ahead with new cuts

IT seems to be now only a matter of ‘where and when’ as regards a major farmer protest over the falling price of beef at the Irish meat plants – this week the factories pressed ahead with more cuts despite a series of meetings across the country last week seeking to stabilise the market prices..

Galway IFA Chairman, Michael Flynn, said that the meat plants seemed ‘hell bent’ on running the Irish beef industry into the ground with the latest series of cuts following what he described as a shocking year in Irish farming.

“This price cut agenda is being driven purely by greed and short term gain. The factories just cannot see beyond their noses – as long as they can increase profits from one week onto the next, they don’t give one jot about the future of the Irish cattle producers,” said Michael Flynn.

He said that he envisaged major protest moves over the coming weeks by farmers who had once more ‘just taken enough’ at the hands of the factories at a time when beef prices in the UK were at an all-time high.

IFA Livestock Chairman Henry Burns said that the beef factories have cut cattle prices by 35c to 50c/kg across the different categories or €130 (steers), €150 (heifers) and €145 (cows) since early/mid-June. 

“Price cuts of this magnitude are inflicting severe financial and income damage on livestock farmers and acutely eroding confidence across the livestock sector,” said Henry Burns.

He said that since early June cattle supplies had remained tight with the weekly kill in the 26,000 to 28,000 range. Major factory price cuts at these levels pointed to a real lack of price competition, leaving farmers very sceptical of the industry’s Food Industry 2020 plans to grow output towards 40,000 head per week.

“This points to a real need for more competition and more live exports. The latest price cuts have seriously damaged confidence in the beef sector and particularly the suckler cow herd. Recent ICBF data shows a 29% increase in beef cows leaving the herd and a 7.4% drop in calvings this spring,” said Henry Burns.

A further 5c per kg. was ‘shaved off’ the price of steers this week by the factories bringing them back to the €4.10/€4.15c per kg. price range.

There have also been suggestions this week that the protests over the beef price cuts could be taken to the doors of major fast food outlets such as Burger King and McDonalds, who strongly promote the image of locally sourced product.

“The factory price cuts combined with other factors have also impacted negatively on store and weanling prices. Mart data shows male store cattle are back €60 to €100 per head on last year. Heifer store prices are back €75 to €100. Weanling bulls are back €70 to €110 and heifers are back 30/50c/kg lw or €100 to €125 per head. Beef price cuts and store and weanling price falls of these levels will impact very negatively across the incomes of all livestock farmers this year,” said Henry Burns.

 Following one of the most difficult winter and spring periods on record with a severe fodder crisis Henry Burns said farmers encountered major cost increases and are left with large bills to pay. “It is critical livestock farmers have a period of strong stable and profitable cattle prices to overcome these challenges and recover.”