October 18, 2022

Irish cattle farmers told to reject low quotes and sell high as prices strengthen

Cattle farmers in Ireland are being urged to reject low quotes by factories and sell high as prices in the UK and EU have strengthened over the past week, the Irish Examiner reported.

Brendan Golden, livestock chairman of the Irish Farmers' Association livestock, said prices paid to farmers by factories do not accurately reflect the strength of the market.

He said that the market strength is reflected by the fact that the most recent Prime Export Benchmark price is EUR 0.27 (~US$0.27; EUR 1 = US$0.98) higher than the Prime Irish Composite price.

Golden said prices have risen in the UK and the EU over the past week, and factories need to offer higher prices that reflect the full value of the current market. 

He said rising production costs have reached a point where cattle finishers cannot risk them and the industry is unable to absorb them, adding that strong beef prices in the upcoming months are essential to cover these expenses,

He also said attempts by some factories to talk down the trade are unjustified, and this week, there is a difference of up to EUR 0.10 (~US$0.10) per kg between quoted and paid prices.

Golden said there is "no justification" for prices to be EUR 0.27 (~US$0.27) per kg lower than the Prime Export Benchmark price, and farmers "will not tolerate" falling prices.

He said market conditions are favourable, and farmers should "sell hard" and reject lower quotes from factories.

Golden has urged Charlie McConalogue, Ireland's Minister of Agriculture, to offer assistance to farmers who feed livestock in the winter to help them offset the unprecedented expenses they must incur in order to maintain their production systems.

-      Irish Examiner