Factories urged to ‘take longer term view on beef prices'
The Irish Farmers' Association (IFA) livestock chair, Declan Hanrahan, has also called on factories to 'reverse the recent price cuts they are attempting'.
According to the IFA supplies of finished cattle are 'extremely tight with numbers' – based on Bord Bia projections and the strong live export trade – expected to be down almost 100,000 cattle for processing between now and year end.
Hanrahan today also said that beef production is also down in Ireland's key markets, chiefly the UK and the EU, and this supply demand balance 'must be utilised to benefit Irish and EU beef producers'.
The IFA livestock chair said that he is aware that factories are very concerned about supplies for the coming weeks and months and are 'actively ringing around farmers in attempts to secure cattle for this period'.
Beef prices
He also stressed that the UK and EU markets are the 'most important outlets' for Irish beef and warned of the threat to posed to Irish beef farmers and long-term viable beef prices from 'trade deals that give access to these markets to cheaper beef'.
Hanrahan pointed to recent trade deals concluded by the UK which he said gives more access for beef to their markets and to ongoing Mercosur concerns and the prospect of discussions re-starting with Australia and the EU.
He believes any 'additional access for cheap beef to these markets would only serve to undermine our prices' and has urged the Irish government to stand firm in rejecting any deals that provides more access to the EU market for beef.
According to Hanrahan beef prices in Ireland have only reached levels that reflect the 'actual production costs on farms' and reflect the quality of product Irish farmers are producing.
He believes that it is important for the long-term viability and sustainability of suckler and beef farmers that they are retained.
'To deliver long term viable prices to suckler and beef farmers factories, Bord Bia and our government have key roles to play, factories can and must stand firm in the market place, beef supplies are tight, demand is strong and they must maximise the opportunity that exists to return higher beef prices to farmers supported by Bord Bia highlighting the standards our beef is produced to,' he said.
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