July 24, 2018

 

Irish pig, cattle farmers reeling from low prices

 

 

The Irish Farmers Association (IFA) cited the seriousness of the situation that Irish pig farmers are facing in the light of the low price of pigs, which is below the cost of production.

 

It also took issue with the cattle price cuts at the factory level.

 

The price of Bord Bia (Irish Food Board)-approved and quality-assured pigs has remained static since numerous price reductions in the back end of 2017 and early January 2018 have levelled off at the current price of €1.40c/kg.

 

"Current production costs are well recognised as being at €1.50c/kg. With the price 10c/kg below the basic cost of production, an 83kg pig carcass is losing over €8", said Tom Hogan, chairman of the IFA pigs committee.

 

He added that at current production figures, the real loss for the average Irish pig unit is €3,500 every week "with no significant pig price rise in sight".

 

"The current outlook, after six months of negative return, is where the crisis lies for the pig sector", Hogan said, adding that higher feed costs, labour cost and availability, and the continued increase in worldwide pork production were all combining to keep cost rising.

 

The pigs committee agreed to seek a pig price increase from the primary processors and the retailers who sell the majority of Bord Bia-approved and quality-assured product on the domestic market, which is the most important market for Irish pork.

 

Cattle-price issue

 

IFA President Joe Healy, meanwhile, called on Agriculture, Food and Marine Secretary Michael Creed to intervene by calling the factories to task on the cattle-price issue.

 

"It's time the Minister demonstrated he is on the farmers side", Healy said, as he asked Creed to bluntly tell factories to stop cutting the cattle price.

 

He claimed that the meat factories have cut cattle prices unnecessarily over the recent weeks, destabilising the beef market and eroding confidence in the sector. He said "beef farmers feel very let down by the factories".

 

IFA National Livestock Chairman Angus Woods said the factories can stabilise beef prices "at this critical juncture".

 

IFA has been meeting with factory management at the local level around the country, highlighting the need for stability in the price. He said prime cattle prices must be stabilised and farmers cannot afford any further price cuts.

 

He added that incomes are being washed away with very substantial increase in costs and falling price returns.

— Rick Alberto