Cork Co-operative Marts Ltd has pulled out of the calf exporting business. The Irish Farmers Journal has learned that the board of the mart has taken the decision to withdraw from the calf export business, sighting losses incurred.
Cork Co-operative Marts Ltd has pulled out of the calf exporting business.
The Irish Farmers Journal has learned that the board of the mart has taken the decision to withdraw from the calf export business, sighting losses incurred.
Cork Marts has been a significant livestock exporter and is of critical importance to the dairy calf export trade. This spring alone, Cork Marts shipped somewhere between 15,000 and 20,000 dairy-bred calves to the Netherlands and Spain.
To put this development in context, Cork Marts represents 20% to 28% of the total number of calves exported in 2016.
However, it is understood that the livestock export aspect of the business endured significant losses for calves bought this spring. Contracts for calves were secured at a price but due to the heated market, Cork Marts had to pay in excess of the contract price in order to secure stock.
Cork Marts is seen as the standard bearer for well-run and efficient marts in the country. In an exclusive statement to the Irish Farmers Journal, Cork Marts said it is exiting the dairy calf export business in order to protect the overall livestock sales business.
“Cork Co-op Marts have been directly involved in the live export of calves since 2009 and have grown the volumes exported each year up to and including 2016. It has always been a very tight-margin business and we have always struggled to make it profitable while also supporting our calf sellers. The past season was very difficult with further downward pressure on margin and operating costs on an upward curve,” read the statement.
“This decision was a difficult one but was made in the best long-term interests of the mart society and shareholders. We will continue to actively promote our mart calf sales and we will revise our commission structure to incentivise both buyers and sellers to do business at our sales.
“Our objective remains to provide a secure and strong market outlet for our farmers to sell their livestock and we will continue to do that even if we are not exporting calves ourselves.”
IFA livestock chair Angus Woods said Cork Marts’ decision is “disappointing and very concerning for farmers and the livestock trade”.
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