Beef price cuts by factories 'short-sighted approach' - Mayo IFA

FACTORIES need to take a longer-term view on beef prices and reverse the recent price cuts they are attempting, Mayo IFA livestock rep. Michael Mitchell told the June meeting of Mayo IFA in Castlebar.

He said 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.

Mr. Mitchell said beef production is also down in our key markets, the UK and the EU, and this supply demand balance must be utilised to benefit Irish and EU beef producers.

Despite talking down the trade, 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, he said.

UK and EU markets are the most important outlets for our beef, he said, and the biggest threat to Irish beef farmers and long-term viable beef prices is trade deals that give access to these markets to cheaper beef.

Mr. Mitchell said the UK are doing bilateral deals that gives more access for beef to their markets, and the EU are in the process of trying to conclude the Mercosur trade deal, with indications that discussions with Australia could be recommencing.

Any additional access for cheap beef to these markets would only serve to undermine our prices; it is vital our government stand firm in rejecting any deals that provides more access to the EU market for beef.

Beef prices, he said, in reality have only reached levels that reflect the actual production costs on farms and that reflect the quality of product produced, and it is vital 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,” said Mr. Mitchell.

Government must ensure the vital EU market for Irish beef is not undermined by allowing additional access for cheaper produce in trade deals that all too often trade off farmers for big industry.