This week, Adam Woods presents the stark facts around the financial challenges facing our suckler sector. Based on Teagasc figures, the suckler beef production system requires a beef price of €4.40-€4.55/kg in order to obtain a margin.

Although we have no place asking a market to return a price to prop up inefficient production models, these figures are based on farmers who are completing the Teagasc profit monitor, indicating a higher than average level of efficiency. While we must be unrelenting in demanding the best market price, we cannot ignore reality: a beef price of €4.50/kg would in today’s market catapult Ireland into one of the highest priced beef markets in the world. While an aspiration, how realistic is it?

There can therefore be no letup in the need to further drive technical efficiency within the production chain and examine all aspects of the cost base.

We cannot ignore the potential inside the farm gate and Matt Dempsey gives first-hand experience of how superior genetics are driving efficiencies of his beef finishing enterprise.

Meanwhile, the Government clearly has a decision to make: does it want to maintain the national suckler herd? The Teagasc figures show just how important direct supports are to the feasibility of the production system.

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Beef trends: factories struggling to regain control