Beef farmers are entering a crisis of confidence and are faced with huge uncertainty for the future, newly elected beef chair of the Irish Cattle and Sheep Farmers’ Association (ICSA) Seán Sherman has said.
This week, the Irish Farmers Journal reported that losses of between €300-€500/head are being incurred on finished cattle.
Sherman said that the sudden price drop is “simply incomprehensible” to farmers.
“Right now, farmers are receiving around €1.10/kg less for cattle than they were at the beginning of December. That equates to a loss of approximately €450/hd for farmers. That is completely unsustainable for any beef farmer trying to make a living,” he said.
Sherman has stated that based on clear market signals, beef farmers made justified decisions to keep cattle into the spring, saying “with the kill projected to be significantly back in the first quarter, farmers were absolutely within their rights to expect that prices would at least remain stable.
“Instead, factories have cut prices dramatically, despite the kill being down by over 62,000 head so far this year.
“That represents a drop of approximately 16% compared to the same period last year and completely ignores the basic laws of supply and demand.”
Farmers made decisions in good faith, expecting to at least cover their costs this spring
Sherman went on to say that farmers might have thought twice about holding on to cattle into the spring if they had known that factories were going to reduce prices.
“Farmers made decisions in good faith, expecting to at least cover their costs this spring. Once again, those expectations have been completely undermined. It also defies logic that Irish beef prices are around 30c/kg behind those in the UK and across Europe. Farmers are rightly demanding to know why we are at the bottom of the EU price league,” he said.
Sherman has called for immediate and full transparency and accountability from beef processors.
“Meat Industry Ireland and factory management need to be called before the Oireachtas to explain what is going on. Farmers cannot continue to operate in a vacuum where prices can be cut at will without explanation. Beef farmers need answers. They need clarity. And above all, they need a system that allows them to plan with some degree of certainty about their future,” he stated.
Read more
Beef prices slashed by €5m
Beef farmers are entering a crisis of confidence and are faced with huge uncertainty for the future, newly elected beef chair of the Irish Cattle and Sheep Farmers’ Association (ICSA) Seán Sherman has said.
This week, the Irish Farmers Journal reported that losses of between €300-€500/head are being incurred on finished cattle.
Sherman said that the sudden price drop is “simply incomprehensible” to farmers.
“Right now, farmers are receiving around €1.10/kg less for cattle than they were at the beginning of December. That equates to a loss of approximately €450/hd for farmers. That is completely unsustainable for any beef farmer trying to make a living,” he said.
Sherman has stated that based on clear market signals, beef farmers made justified decisions to keep cattle into the spring, saying “with the kill projected to be significantly back in the first quarter, farmers were absolutely within their rights to expect that prices would at least remain stable.
“Instead, factories have cut prices dramatically, despite the kill being down by over 62,000 head so far this year.
“That represents a drop of approximately 16% compared to the same period last year and completely ignores the basic laws of supply and demand.”
Farmers made decisions in good faith, expecting to at least cover their costs this spring
Sherman went on to say that farmers might have thought twice about holding on to cattle into the spring if they had known that factories were going to reduce prices.
“Farmers made decisions in good faith, expecting to at least cover their costs this spring. Once again, those expectations have been completely undermined. It also defies logic that Irish beef prices are around 30c/kg behind those in the UK and across Europe. Farmers are rightly demanding to know why we are at the bottom of the EU price league,” he said.
Sherman has called for immediate and full transparency and accountability from beef processors.
“Meat Industry Ireland and factory management need to be called before the Oireachtas to explain what is going on. Farmers cannot continue to operate in a vacuum where prices can be cut at will without explanation. Beef farmers need answers. They need clarity. And above all, they need a system that allows them to plan with some degree of certainty about their future,” he stated.
Read more
Beef prices slashed by €5m
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