Factories are purchasing steers at a base of €3.75/kg and heifers at a base of €3.85/kg, but there is already talk of further cuts next week.

Speaking to the Irish Farmers Journal at Ploughing 2018, Charlie McConalogue, Fianna Fáil spokesperson for agriculture, said a strong spotlight needed to be maintained on factories.

He acknowledged that factories operated in a world market but insisted that the beef sector was a partnership and factories would only do well when farmers were able to produce sustainable beef.

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He called on Minister Creed to ensure farmers were not exploited on the back of a difficult year.

International markets

He said: “The minister must do all he can to ensure factories do not take advantage of farmers. There will be a bigger kill this autumn. It is important that factories do not undercut prices here at national level in a way that is not happening in international markets.”

He called on the minister to convene the beef forum immediately in order to hold the factories to account and let it be clear all eyes were on them.

Loans

McConalogue also reissued calls for the immediate implementation of low-interest loans that were promised to farmers in last year’s budget.

He said the fact it was less than six months to Brexit, with the loan scheme yet to happen, was a very poor reflection on Minister Creed’s performance. He said the Government to date had not steeped up to the mark and there was still an element of hoping for the best.

Support

“We didn’t see enough support last year and that was for a large part due to the fact the government spent much of the winter and spring in denial. As late as April, the minister denied to me that there was a fodder crisis.”

He added that a hardship fund was now needed for farmers who had no access to credit but needed support for the coming winter.