Once again we see the beef industry in crisis territory. As Adam Woods reports, the base price for steers and heifers is back 10-15c/kg on last week

. Weight limits have returned and some of the speciality breed bonuses have been significantly reduced.

The sharp drop in price comes as farmers head into one of the most expensive periods in the year to finish cattle. Based on an autumn store price, farmers selling finished animals this week are incurring losses of €150 to €220 per head.

According to beef processors, the price reflects the market. An overhang created by stockpiling in December in preparation for a no-deal Brexit, a slowdown in burger chain demand and a buy-British focus in retailers have all been put forward as justification for heaping further losses on to farmers.

Unfortunately, a lack of market transparency leaves it impossible for farmers to properly ascertain whether all or any of these market forces merit pulling prices €30-€50 per head. The only real benchmark available is the price paid for finished cattle in the British market. This remains strong, running at €200 to €250 per head higher than currently being returned in the Irish market. Yet as covered in this week's edition, Bord Bia confirms that several key buyers of Irish beef in the British market see it as equivalent to domestic produce.

There have been calls for Minister for Agriculture Charlie McConalogue to convene an emergency meeting of the Beef Taskforce but few will hold out hope of any meaningful impact given its track record. There should have been an opportunity for the taskforce to have transparency conditions attached to the €100m fund for factories, which ironically opened in the week factories decided to pull prices. But unfortunately there seems to have been minimal support among farmer representatives on the taskforce for such an initiative and the opportunity may be lost.

Irish farmers have been forced to incur all the additional costs of producing a premium product only to be paid less

The reality is that the crisis once again engulfing the beef sector reflects the extent to which the Beef Taskforce, and its predecessor the Beef Forum established in 2014, have been talking shops rather than vehicles for meaningful change.

As a result, the sector has continued on a downward spiral in the seven years since, with winter finishers repeatedly suffering heavy losses. It has been accelerated by factories moving to force farmers out of young bull beef production. The associated loss in efficiency, equivalent in beef price to around 40c/kg, has never been replaced in what has been a falling market for steers and heifers.

On our letters page this week, Bord Bia disputes a number of the observations made by Phelim O’Neill in his recent analysis of the beef sector performance over the last decade. They point out some legitimate successes, but there is no masking over the fact that despite a focus on securing premium markets, the value of Irish beef exports is falling.

It has led to a scenario where in recent years Irish farmers have been forced to incur all the additional costs of producing a premium product only to be paid less.

It is a scenario that challenges the financial logic of continuing to produce beef all-year round in the absence of any commitment from processors to deliver forward price contracts. But it is one that will remain for as long as farmers continue to shoulder all the financial risk of winter finishing.

Hold nerve

Meanwhile, in current market conditions, farmers need to hold their nerve. Early February is traditionally an uncertain period in the market as consumer buying habits change in line with the arrival of Christmas credit card bills. It is likely to have created a softening in the market. However, the shock tactics by processors this week are likely to be more aligned to what industry sources have indicated are very strong orders from British retailers for the Easter period – with the exceptionally strong retail demand seen over Christmas likely to be repeated.

Meeting this demand will require throughput to increase again within weeks. Unfortunately, in the intervening period, the strategy appears to be to use this temporary lull to regain control of the base price in a bid to limit the extent of the price rise in March when demand increases.

This week's cartoon:

\ Clyde Delaney

Animal health: proper oversight needed for vets

The Irish Farmers Journal was contacted recently by a group of vets in Northern Ireland expressing concern as to the lack of regulatory oversight around the supply of antibiotics on to farms.

The findings of our investigation into the issue are carried in this week's edition. Clearly there are serious shortcomings in how both the Royal College of Veterinary Surgeons and the UK Veterinary Medicines Directorate are operating in this area.

Meanwhile, there is evidence that controls within some practices in the Republic of Ireland also need to be tightened.

These issues must be dealt with to protect the good work being carried out across the industry and by farmers to ensure the responsible use of animal remedies.

Failure by a few to adhere to existing regulations leads to increased regulations and scrutiny for all.

Sheep: positivity ahead of lambing preparations

The strength of sheep markets at present and a positive outlook for 2021 is invigorating farmers in putting plans in place for this year’s busy lambing period.

The positive market outlook outlined in this week’s lambing Focus is great for the sector and gives an opportunity for farmers to invest in infrastructure and equipment that will streamline efficiency.

Yes, there are some challenges such as growing participation in quality assurance but we have seen time and time again that farmers are willing to respond to market signals provided the right mechanism is in place to reward them for their efforts.

Wellbeing: take some time to phone a farmer friend

Spring is an extremely busy period and with calving and lambing comes highs and lows. As COVID-19 restrictions continue, the opportunity for farmers to get a break from the farm and even discuss issues with others is limited. Throughout February, the Irish Farmers Journal is running a campaign to encourage farmers to take 10 minutes out during the week to phone a farmer friend and have a chat.

It is great to see a host of IFA county meetings and discussion group meetings continue to take place remotely.

This is a spring where as much emphasis should be placed on the health and wellbeing of the farmer as on their livestock or crops.