November 5, 2007

 

Ireland beef farmers call for increased prices

 

 

Beef farmers in Ireland warn they will cease production and will end up losing many of the markets it has developed for ten years unless they receive a sustainable margin, the Irish Creamery Milk Suppliers Association has warned.

 

Association Beef and Cattle committee chairman Martin McMahon said this scenario seems likely to happen unless a determined effort is made to increase beef prices. McMahon said the only solution is an immediate increase in beef prices. Fattening cattle is currently a loss-making business and the future of this sector was now in "red alert" territory, he said.

 

The US cattle herd fell by 400,000 head last financial year, according to Meat and Livestock Australia.

 

The herd was 104.8 million head on July 1, which was 0.4 percent lower than a year earlier.

 

The rate of liquidation was in line with pre-report estimates.

 

However, the rate of decline in the beef-cow-replacement herd caught analysts by surprise, with numbers down 6 per cent compared with a year ago, when pre-report estimates were expecting a 2.3 per cent reduction.

 

There were 33.35 million beef cows, or 100,000 head fewer, resulting in the smallest July 1 cow herd since 1990.

 

Beef prices are now 60 euros a head below compared to October of last year. An Irish steer is currently making 130 euros per head less than the same animal in Britain, while at the same time feed and other costs have also risen.

 

Given the gap in Irish and British prices, it is clear factories can pay more for cattle, says McMahon. If necessary, farmers must go to the retailers for increased returns in order to fully reflect the economics of beef production.

 

He added that increased prices to secure the Irish beef industry's future.