September 1, 2017

 

 

After raising the issue of pigmeat price cuts, this time around the Irish Farmers' Association has expressed "anger" over beef price cuts that run as high as €100 (US$119) per head.

 

IFA President Joe Healy and National Livestock Chairman Angus Woods met recently with the chairman and senior officials of the Meat Industry Ireland (MII), representing the meat factories, in Portlaoise, where the factory price cuts were the major item on the agenda.

 

Healy said IFA made it clear to the meat factory representatives that anger was rising among farmers over the "speed and severity" of the beef price cuts over the last month.

 

IFA made it also clear that the cattle price cuts must stop, adding that the €100 per head cut in cattle prices had gone too far and that stability and confidence must be restored at the farm level.

 

'Undermining confidence'

 

The IFA president accused the factories of undermining confidence in the trade "at a critical time", and using the uncertainty around Brexit and the weakness of sterling to cut beef prices.

 

He said the factory price cuts were not justified based on market returns, pointing out that cattle prices in the UK's main market were equivalent to €4.42 per kilogramme.

 

He added that the meat factories need to invest in their farmer suppliers at a time when currency fluctuates.

 

Woods, for his part, told MII that cattle farmers were under savage income pressure from the price cuts.

 

Sharp decline of sterling

 

Meanwhile, Healy asked the government to urgently act to counteract the "serious damage" being done to farming enterprises in the beef sector arising from the recent sharp decline of the sterling.

 

Joe Healy said, "Sterling has been falling since April, when the UK general election was called, and it was at 85 pence to €1. The decline has accelerated in recent weeks, with sterling falling to 93 pence to €1 by the end of August.

 

"Government cannot afford to wait any longer to provide direct support for beef farmers and mushroom growers who are being impacted today by the Sterling depreciation. Unless action is taken promptly, irreparable damage may be caused to the viability of beef farmers and mushroom producers", Healy.said,

 

"It is imperative that the government now seek EU support for farm level measures that will counteract the price drops being experienced, which are arising directly from the sterling depreciation, independent of other normal market forces", he added.

 

Pig meat price cuts

 

Early last month IFA National Pigs Chairman Tom Hogan accused the pig processing factories of undermining the pig meat market with "unnecessary" price cuts and urged all pig farmers to strongly resist price pressure from processors.

 

Hogan called on the processing sector to refrain from manipulating the market in their own interests and offer back the Irish pig farmer the true value of their product.-Rick Alberto