Latest beef quotes described as ‘sneaky'

Agriland

a day ago

The Irish Creamery Milk Suppliers' Association (ICMSA) has said that farmers will feel frustrated and disrespected by the 'sneaky' 10c/kg cut in beef quotes late last week.
Chairperson of ICMSA's Livestock Committee, Michael O'Connell said the price drop was 'slyly introduced' by procurement staff introducing new base prices from mid-week onwards.
'It's strikingly similar to last year; at the first sign of uncertainty in the trade, factories pull prices by 10c/kg.
'Why does this 'uncertainty' always manifest itself in the form of price cut to the farmer primary-producer?' he added.
The ICMSA stated that the only certainty is that beef production is down globally.
Noting the record beef prices since the turn of the year, O'Connell pointed out that set against the costs of production and value of store cattle, these price increases were needed.
He said that returns for beef farmers in recent years had been very marginal and farmer hopes had been high that this year might see prices provide a 'buffer' against that trend.
'We had hoped that this year would see the kind of beef prices that the market indicated and that long-suffering farmers deserved. But, as usual, factories have 'thrown the toys out of the pram' in an attempt to regain control over the trade with this farcical price cut.,' O'Connell continued.
'When we look at the prices paid to beef farmers this spring, it is perfectly obvious that factories have had the capacity to pay well for cattle when there is a demand.
'…In 2019, at the time of the beef protests at factory gates around the country, prices were at an all-time low of €3.40/kg for steers and heifers. Today, we [have] seen base prices of €7.60-7.70 for steers and heifers – more than double. What has changed in this period?
'The answer is the mindset of Irish farmers as well as the cattle herd size across Europe and internationally,' he said.
The ICMSA chair said that the numbers of suckler cows has reduced dramatically, while the age demographic of Irish farmers has steadily increased.
He stated that farmers are now testing the marketplace by selling factory fit cattle in marts and leaving factory agents and procurement staff to battle it out ringside.
Alongside that trend, huge pressure has been put on factories by the increasing number of calves, weanlings and beef cattle being exported into Europe and further afield, according to the ICMSA.
'For the past two or three years, cull cows have insulated and propped up factory throughput. But the latest throughput figures have shown that the cull cow kill has peaked with current figures falling below last year's,' O'Connell continued.
'Young bulls are also falling steadily, but this has been an ongoing trend due to the blatant 'blackguarding' of young bull finishers over the last number of years.
'That group who finished young bulls are falling rapidly at exactly the same time as we see huge developments in live exports.
'And this is where the factories' 'mind games' have caught up with them; they've spent so much time deliberately manoeuvring to keep prices low with reduced kill plans, short weeks and instilling uncertainty in demand that no-one can, or should, believe them.'
Reduced kills
The ICMSA Livestock chairperson said that reduced kill plans were nothing more than a price controlling measure.
'It creates a sense of panic among farmers to try offload cattle before a further price drop but realistically, it is a method of 'flushing out' the last of the shed cattle,' he said.
'Factories will naturally kill their own feedlot cattle at the expense of farmers' cattle. Most factories are reduced to three to four days per week suggesting that they are trying to stretch out a limited availability of slaughter-fit cattle – and that analysis is supported by the reduction in cow and young bull kill.
'I would urge farmers to sensibly consider their options before giving in to factories and particularly where we're talking cattle off grass. It is very early to kill cattle from grass, with or without feed.
'Cattle may look fleshy and fit, but it is amazing the thrive the cattle would do in the next month, and I believe farmers would be disappointed with returns on these cattle.'
The ICMSA is urging farmers, particularly with grass cattle, to consider the mart, as the 'dying power' would not be in these cattle yet.
The farm organisation has said that the mart trade this week is ahead of factory trade with beef Hereford and Angus cattle making up to €4.10/kg liveweight.
'No matter what way you add it up, a base price of €7.50 with a breed bonus of 20c and taking your chance on the 'mysterious' grid is not going to come up to €4.10/kg liveweight in the mart,' O'Connell explained.
'Continental steers and heifers are commanding up to €4.30 and up to €4.50/kg in cases of better-quality cattle. I'd really urge those farmers with cattle off grass to consider the marts.'