The Irish Creamery and Milk Suppliers Association (ICMSA) has said that the beef price rise will not overshadow the major concerns in the sector.
ICMSA livestock committee chair Michael O’Connell welcomed the price rise, with factories working on securing adequate supplies in the run-up to the Christmas trade.
The latest increase added 5c/kg to base prices, with €5.10/kg the base price for steers and €5.15/kg the base price for heifers.
In addition, the standard breed bonuses of 10c for Herefords and 15c for Angus have been exceeded, with 15c/kg and 20c/kg respectively in some cases.
However, O’Connell said that some processors have already slaughtered cattle out of their own feedlots after 30 days of residency.
“One would have to ask where are Bord Bia quality assurance guidelines here - are these animals being sold as quality assured and is there a quality assurance payment being made?
“If a farmer bought quality assured cattle and slaughtered them after 30 days residency, you can be sure he or she wouldn’t receive the bonus.”
Carcase weight
O’Connell said that he is concerned by what he calls dwindling carcase weights year on year.
In the last year, carcase weight of steers dropped to a record low of 347kg from a record high of 360kg in 2020.
With the number of steers slaughtered in 2023 at 693,933, the ICMSA said this is a total reduction in carcase weight of 9.02m kg of beef.
“The average price of all steers slaughtered in 2023 was €5.04c/kg inclusive of VAT. Therefore, farmers have lost in a short period of time €45m on these cattle,” he added.
UK market
The ICMSA has also cited the difference in price between the Irish and UK for R3 steer as a major concern.
According to the latest Bord Bia figures, the difference lies at €1.04/kg.
“We have State agencies and Department officers jetting off around the world on trade missions selling our beef and lamb, but why isn’t this differential being addressed - it’s the silent elephant in the room.
“It’s no wonder to this day that the UK are our largest customer for beef and when you see the price differential, it’s cheaper for them to buy Irish beef than stock the shelves with UK beef.”
Sustainability
Figures from the Teagasc national farm survey dairy beef factsheet found that the average net margin on a dairy calf-to-beef farm in 2023 was €65/acre.
O’Connell said the sustainability progress farmers are making is “only making one party wealthy - the beef processors".
“Farmers have made huge strides towards sustainability, but are not being recognised for it.
“We, as farmers, are doing everything we possibly can do to help our climate targets - reduction in nitrogen usage, use of clover and MS swards, slaughtering cattle at younger ages and use of LESS to name but a few - and for all this adaptation, we have seen no incremental improvements in return on investment on our farms.”