Organic beef farmers will be somewhat reassured by a €5.30/kg forward price guarantee issued by processors Good Herdsmen and Slaney Meats this week, according to the Irish Cattle & Sheep Farmers' Association (ICSA).

ICSA organics chair Fergal Byrne said this commitment from processors offers some level of reassurance to organic farmers facing into an expensive winter of feeding.

Byrne made his comments as he announced that “a price structure has been set by these companies for the next 10 weeks”.

“While quotes for this week are coming in at €5.10/kg, the base price will be a guaranteed €5.30/kg in the first week of February 2022.”

Price guarantee

The ICSA said it understands that this price guarantee is likely to be extended into early June next year.

Sources have indicated to organic beef farmers that prices will reach “around the €5.60/kg mark throughout the spring and into the early summer”.

However, Byrne noted that “this price is inclusive of the quality assured bonus”.

He also highlighted his dissatisfaction with the grid payment structure for organic cattle.

“The positive is that there is now a built-in bonus for U grade cattle, but it is capped at +18c/kg compared to a top grid price of +24c/kg for U+ cattle in the conventional grid.

“Also, the cuts for O grade cattle in some instances are more severe than on the conventional grid.”

Organic beef feasibility

The Kildare mixed organic farmer said: “It must be remembered however that the cost of feeding organic cattle is significantly higher than the cost of feeding commercial cattle.

“The price of organic ration is a real issue for winter finishing of organic cattle and this is going to get worse before it gets better.”

Byrne called on the Government and Bord Bia to intensify efforts to secure new market opportunities for organic beef to ensure demand for what farmers are producing.

“Government policy is to significantly increase the levels of organic production here. This is all well and good, but only if we have the markets, and that’s going to take a considerable effort.”