Beef prices exercised a room of 1,300 passionate farmers at the Irish Farmers Journal Beef Summit on Thursday night.
Farmer after farmer questioned a panel of high-profile industry speakers, demanding answers on beef returns, genetics in the BDGP scheme and the amount of money processors make from the fifth quarter of each carcase.
Suckler farmer John Flaherty from Castleisland in Co Kerry reacted to the presentation made by Cormac Healy of Meat Industry Ireland.
“Cormac Healy says farmers were being paid for the fifth quarter. I’m glad he thinks that, because he’s the only one in the room who thinks it,” said Flaherty.
“Unless we get paid for our cattle, we’ll be going the way of the corncrake in Ireland, destined for history.”
Responding, Cormac Healy said: “Every part of the animal, from the hide to 200 different parts of the carcase, we are trying to find a market for. That feeds back into the return from the animal and feeds into the price of cattle.”
Grading machines
A representative of the Irish Natura and Hill Farmers' Association (INHFA) asked if grading machines would be reviewed, given there had been 10 new iPhones since machines were first introduced.
Responding, Cormac Healy told farmers that a trial had been undertaken with the Department of Agriculture, aimed at future-proofing grading machines. He said a report was due at the end of May which would look at areas such as digital cameras and LED lights.
Cormac Healy of Meat Industry Ireland at the IFJ Beef Summit. \ Dave Ruffles
Fifth quarter
“I’m blue in the face talking about the carbon efficiency of Irish beef,” Thomas Cooney of the IFA said.
He asked Healy for a breakdown of what processors received for beef cuts in the first quarter of 2019, 2018 and 2017. He also asked what the meat factories received for quality assured animals and asked for a guarantee that “it’s not going in the one box”.
Healy replied: “Anything that isn’t QA is not going to a customer that is buying and wants QA beef.”
He said he didn’t have particular figures on him for the question asked.
“I would suggest that the figures that I have referenced are checked by the Irish Farmers Journal, Bord Bia figures and the Department of Agriculture. I’m not here to mislead farmers.”
Genetics
Ger Dineen, a west Cork suckler farmer, challenged Andrew Cromie, technical director of the ICBF, about the profitability of even herds of the highest genetics.
“My herd is in the top 5% in the country. I’ve been in suckling for 40 years, using AI for 20 years,” he said.
“I do all my costs. Last year the cost of production on my farm was €5.38/kg. We’re getting €3.70/kg,” the farmer said.
“My question is, how are we going to make a profit? Our costs of production are way out of kilter with the price we are getting. 2017 was a better year, my cost of production was €5/kg. Where are we going if we don’t get a proper price?” he asked.
Roscommon farmer James Young, from Strokestown, claimed the board of ICBF had not been properly elected and that there was no representatives on the board from the west.
Andrew Cromie strongly refuted this claim, saying the ICBF board was made up of the shareholders who first invested in the cattle in 1998, including farming organisations, the IFA and ICSA.
He said there were six farmers on the board, including farmers from the west.
Price comparison
Eoin Donnelly of the Beef Plan Movement criticised the price comparison used between Irish and European prices.
“Does he think we’re stupid, that you compare a steer to a bull continuously? Why don’t you compare a steer to a steer? Show that Irish farmers have been paid less for their steers and heifers. Put up the graphs for a P3 cow.”
In response, Cormac Healy said that the comparison with an EU price is because that is the price that is prevailing in European markets that we are selling to.
“Yes, differentials are wider in the pricing systems in some other member states and that’s one factor that has to be looked at. We have to look at it," Healy said.
“The €5 cost of production and I was asked a question about that, and I don’t know where €5 is going to come from out of the market. That’s the genuine question we have to ask. €5 seems and insurmountable challenge, but we have to ask a question: how much beef are we going to sell at that price?”
Viable income
Angus Woods, IFA livestock chair, said farmers needed a decent, viable income.
“There’s never been a clearer time when a targeted payment was needed for sucklers – how does Meat Industry Ireland intend to return a viable price back to suckler farmers in the room?”
In response, Cormac Healy said: “When the market is there, [price] is buoyant and when demand is there, price has gone up, it has responded. When the price is there in the market, it is returned.
“The price has moved on in recent weeks. When the market is there, the price will move on.
“I do see a higher price [on last year], there has been higher prices and this time last year I think the price for steers was 428-430c/kg. Price is recovering at the moment but we have to depend on what’s coming on to the market.
Read more
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Beef Summit: what will the Irish suckler cow look like in 2030?
Beef prices exercised a room of 1,300 passionate farmers at the Irish Farmers Journal Beef Summit on Thursday night.
Farmer after farmer questioned a panel of high-profile industry speakers, demanding answers on beef returns, genetics in the BDGP scheme and the amount of money processors make from the fifth quarter of each carcase.
Suckler farmer John Flaherty from Castleisland in Co Kerry reacted to the presentation made by Cormac Healy of Meat Industry Ireland.
“Cormac Healy says farmers were being paid for the fifth quarter. I’m glad he thinks that, because he’s the only one in the room who thinks it,” said Flaherty.
“Unless we get paid for our cattle, we’ll be going the way of the corncrake in Ireland, destined for history.”
Responding, Cormac Healy said: “Every part of the animal, from the hide to 200 different parts of the carcase, we are trying to find a market for. That feeds back into the return from the animal and feeds into the price of cattle.”
Grading machines
A representative of the Irish Natura and Hill Farmers' Association (INHFA) asked if grading machines would be reviewed, given there had been 10 new iPhones since machines were first introduced.
Responding, Cormac Healy told farmers that a trial had been undertaken with the Department of Agriculture, aimed at future-proofing grading machines. He said a report was due at the end of May which would look at areas such as digital cameras and LED lights.
Cormac Healy of Meat Industry Ireland at the IFJ Beef Summit. \ Dave Ruffles
Fifth quarter
“I’m blue in the face talking about the carbon efficiency of Irish beef,” Thomas Cooney of the IFA said.
He asked Healy for a breakdown of what processors received for beef cuts in the first quarter of 2019, 2018 and 2017. He also asked what the meat factories received for quality assured animals and asked for a guarantee that “it’s not going in the one box”.
Healy replied: “Anything that isn’t QA is not going to a customer that is buying and wants QA beef.”
He said he didn’t have particular figures on him for the question asked.
“I would suggest that the figures that I have referenced are checked by the Irish Farmers Journal, Bord Bia figures and the Department of Agriculture. I’m not here to mislead farmers.”
Genetics
Ger Dineen, a west Cork suckler farmer, challenged Andrew Cromie, technical director of the ICBF, about the profitability of even herds of the highest genetics.
“My herd is in the top 5% in the country. I’ve been in suckling for 40 years, using AI for 20 years,” he said.
“I do all my costs. Last year the cost of production on my farm was €5.38/kg. We’re getting €3.70/kg,” the farmer said.
“My question is, how are we going to make a profit? Our costs of production are way out of kilter with the price we are getting. 2017 was a better year, my cost of production was €5/kg. Where are we going if we don’t get a proper price?” he asked.
Roscommon farmer James Young, from Strokestown, claimed the board of ICBF had not been properly elected and that there was no representatives on the board from the west.
Andrew Cromie strongly refuted this claim, saying the ICBF board was made up of the shareholders who first invested in the cattle in 1998, including farming organisations, the IFA and ICSA.
He said there were six farmers on the board, including farmers from the west.
Price comparison
Eoin Donnelly of the Beef Plan Movement criticised the price comparison used between Irish and European prices.
“Does he think we’re stupid, that you compare a steer to a bull continuously? Why don’t you compare a steer to a steer? Show that Irish farmers have been paid less for their steers and heifers. Put up the graphs for a P3 cow.”
In response, Cormac Healy said that the comparison with an EU price is because that is the price that is prevailing in European markets that we are selling to.
“Yes, differentials are wider in the pricing systems in some other member states and that’s one factor that has to be looked at. We have to look at it," Healy said.
“The €5 cost of production and I was asked a question about that, and I don’t know where €5 is going to come from out of the market. That’s the genuine question we have to ask. €5 seems and insurmountable challenge, but we have to ask a question: how much beef are we going to sell at that price?”
Viable income
Angus Woods, IFA livestock chair, said farmers needed a decent, viable income.
“There’s never been a clearer time when a targeted payment was needed for sucklers – how does Meat Industry Ireland intend to return a viable price back to suckler farmers in the room?”
In response, Cormac Healy said: “When the market is there, [price] is buoyant and when demand is there, price has gone up, it has responded. When the price is there in the market, it is returned.
“The price has moved on in recent weeks. When the market is there, the price will move on.
“I do see a higher price [on last year], there has been higher prices and this time last year I think the price for steers was 428-430c/kg. Price is recovering at the moment but we have to depend on what’s coming on to the market.
Read more
Beef Summit: 'It is time for the beef sector to fight back' – Creed
Beef Summit: maybe it’s time to review beef grid - factories
Beef Summit: what will the Irish suckler cow look like in 2030?
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