2 days ago
IFA dubs beef price cuts ‘shortsighted'
Factories need to take a longer-term view on beef prices and reverse the price cuts they have already put in place, urges the IFA.
Irish Farming Association livestock chair, Declan Hanrahan, warned that cattle numbers are set to be down by almost 100,000 for processing between now and the end of the year, based on Bord Bia projections. This appeal from the IFA comes after a further reduction of 10c/kg to beef prices this week was imposed by factories.
Mr Hanrahan explained that beef production is also down in other key markets like the UK and the EU, and the supply-demand balance must be utilised to benefit Irish and EU beef producers. Mr Hanrahan said the UK and EU markets are the most important outlets for Irish beef, and the biggest threat to Irish beef farmers and long-term viable beef prices is trade deals that give these markets access to cheaper beef.
Mr Hanrahan pointed out that the UK is doing bilateral deals that give more access for beef to their markets, while the EU is in the process of trying to conclude the Mercosur trade deal, with indications that discussions with Australia could be on the cards.
Additional access to cheap beef in these markets will undermine the prices of Irish beef. Mr Hanrahan appealed to the Department of Agriculture to stand firm in rejecting any deals that provide more access to the EU market for beef from outside sources.
'To deliver long-term viable prices to suckler and beef farmers factories, Bord Bia and our Government have key roles to play, factories can and must stand firm in the market place, beef supplies are tight, demand is strong and they must maximise the opportunity that exists to return higher beef prices to farmers supported by Bord Bia highlighting the standards our beef is produced to,' Mr Hanrahan said.
Mr Hanrahan concluded by warning the department that the vital EU market for Irish beef cannot be undermined by allowing additional access to cheaper produce in trade deals that trade off farmers for big industry.
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Factories cut beef quotes by 10c/kg despite tight supplies
