Bull finishers are outraged by reduced factory demand for slaughter-fit bulls. Lower factory activity in recent weeks has resulted in a massive backlog of bulls on finishing farms across the country, with out-of-spec Friesian bulls being the worst hit.
In the past few weeks, some factories have reduced their activity for bulls and, in some cases, have stopped killing bulls over 16 months completely.
In many cases, even large finishers who are working closely with factories are struggling to move stock.
The backlog has resulted in significant price pressure on both continental and Friesian bulls, with the latter receiving the lowest interest from factories.
IFA national livestock chairman Henry Burns said: “Factories are now turning their backs on farmers and imposing penal price cuts on them.”
In recent days, quotes for average quality Friesian bulls have dropped to as low as €3.40/kg, while farmers with continental bulls aged 18 to 20 months are receiving quotes of €3.70 to €3.90/kg.
The problem was compounded by an increased focus by factories on slaughtering their own stock from feedlots, which resulted in reduced demand for farmer-owned cattle.
This has caused a backlog of slaughter-fit stock resulting in factories becoming choosier with in-spec stock and in some cases no longer slaughtering bulls.
Henry Burns said: “The antics of the factories on bulls and prices are extremely damaging for the Irish livestock sector.”
He warned that anger among farmers feeding bulls is boiling over. “The factories have created a problem with bulls to undermine and erode the beef price. This is totally unacceptable and avoidable.’’
In the last 18 months, some factories have occasionally signalled consumer demand issues with beef from aged bulls, particularly for the British market.
The horsemeat saga of spring 2013 led to reduced demand for aged bulls and increased the demand for in-spec quality assured cattle.
However, despite this, factories continued to offer similar beef prices for out-of-spec and bulls over 16 months throughout the year as was paid for in-spec steers.
As a result, bull finishers feel they were lured into a false sense of security with regards to the price gap between out-of-spec and in-spec bulls and the demand for these bulls.
They are angry that in many cases there was little to no warning given to finishers about the current issues regarding bulls. In some cases, finishers were encouraged to continue finishing aged bulls as recently as October and November.
Larger finishers which have loyally slaughtered stock with their factories are, in most cases, being accommodated.
However, finishers with out-of-spec bulls or farmers who are new to the game with small numbers are struggling to find a purchaser for these bulls.
Large bull finishers in the northwest are reported to be amongst the worst hit, following much-reduced demand for bulls by Foyle Donegal.
It is reported that farmers who have been supplying Kepak are being accommodated, as are farmers supplying Dawn factories.
ABP have been reported to be much more active for in-spec quality assured steers and heifers, with lower numbers of bulls being slaughtered at some factories.
Some of the independent factories have also reduced their activity for bulls over 16 months, but in some cases are accommodating loyal suppliers.
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