Brexit, beef price and Mercosur – a triple threat to Irish and European beef farmers.
Brexit has been hanging around like a bad smell since June 2016. Deal or no deal, election, vote, failure, vote again, and again, resignation, election and on and on it goes.
Meanwhile, Irish farmers suffer a depressed beef price. It is impossible to budget for future investment or even plan when is the best time to market stock. The 31 October 2019 is a date lurking in the future, threatening even the most optimistic farmers and an empty can likely to be kicked further down the road for who knows how long.
While a beef fund of €100m will cover some of the losses incurred to date, it will by no means cover all the losses incurred
A lack of certainty in any business is dangerous and farming is no different. While there is no definitive decision on Brexit, farmers are frustrated and worried about what the future holds. While a beef fund of €100m will cover some of the losses incurred to date, it will by no means cover all the losses incurred and, with the drop in beef prices over the past month, much of this money is already lost.
The summer show circuit continues around the country, with owners taking great pride and much time in preparing their animals, in the hope of taking home a red rosette or sash for a champion. Unfortunately, the price these owners will eventually receive for the prize animals is well below the time and effort they deserve.
Weanling sales
Autumn weanling sales are soon on the horizon and without some guidance from beef processors, beef finishers will be taking a huge chance on a future beef price when calculating how much they can afford to pay for suckler weanlings.
Suckler farmers will want more for their stock, just to cover the cost of keeping the cow and making a small margin, while the finisher gambles on a future beef price.
Mercosur
In the middle of Brexit and the beef fund, a European Commission in its last days in office agreed a trade deal with South American countries – Mercosur, the latest threat to European farmers.
While farmers in the EU must adhere to the highest environmental, welfare and traceability standards, adding to the cost of production, South American farmers can produce and export beef, well below our costs.
Yes, an extra 99,000t of beef will reduce the base price of Irish beef. Now is the time to point out the contradictions to the European Commission agreeing this trade deal
Irish farmers are asked to reduce the carbon output of their cows, while South American farmers cut away the rainforest to make way for livestock. This makes no sense and is why Irish farmers are so incensed by this trade deal. Yes, an extra 99,000t of beef will reduce the base price of Irish beef. Now is the time to point out the contradictions to the European Commission agreeing this trade deal.
While some commentators and economists point to the advantages of this deal to the wider economy, especially some other European economies, they are ignoring the environmental impact this deal will have.
So, while beef farmers may often be criticised for playing the poor mouth all the time, now is a difficult time to be optimistic with the “Triple B” threat: Brexit, beef price and bad Mercosur.
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