Organic beef farmers are becoming increasingly concerned that the 20% margin they traditionally receive over conventional beef prices is slipping.

John Fitzpatrick, an organic beef farmer from Co Laois, told the Irish Farmers Journal: “There was always that 20% margin on finished organic cattle but it’s not there anymore and much closer to the price of conventional cattle.”

There are around 1,600 organic beef farmers in the country. However, figures are currently being updated after an influx of over 500 farmers in 2015, according to the Department of Agriculture.

Analysis by the Irish Farmers Journal showed a 16% price difference between the average base grade (ABD) of 409.0c/kg received by conventional farmers and 475c/kg received by organic farmers from the organic processor Good Herdsman last week.

While the margin on organic beef may still seem generous, organic farmers point out that there are strict requirements and increased costs involved in finishing cattle.

“The organic ration that I’m giving my cattle is costing over €400/t,” Fitzpatrick said.

“I looked at a docket last night and with bonuses, a conventional man got 445c/kg. If you continue getting close to conventional prices, you’re not going to stay in business too long.”

Jane Shackleton from Co Cavan also raised the issue of higher input costs and concerns over market prices.

“The market is growing but the price is dropping for us,” Shackleton said.

“Farmers have to have organic feed, a lower stocking rate and half the shed area has to be straw-bedded, which all costs money.”

Slaney and Good Herdsman are the two main organic beef processors in Ireland, with Good Herdsman killing 6,500 cattle in 2017.

Last year, ABP gained a majority shareholding in Good Herdsman, based in Co Tipperary.

Good Herdsman managing director John Purcell said: “We export 52% of our product, with Germany being our biggest market.

“We are competing in France and Germany against their dairy and their suckler cow. Our quality is much better but they’ve set a price and we have to match it or better it.

“Farmers do get a premium and it’s been consistent over the last number of years.”

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