Beef & Sheep Update 5th June

General Issues – CAP, MFF, Green Deal – Farm to Fork and Biodiversity strategies 

• EU Commission President Ursula Von der Leyen recently announced a COVID19 Recovery Package for Europe, including a Pandemic Crisis Fund of €540bn, a €1,100 bn MFF for next 7 years and a European Recovery Next Generation Fund of €750bn.
• While the new proposal increases in CAP funding from original Commission proposal, it still involves a 9% decrease from EU CAP Budget 2014- 2020 at constant 2018 prices.

• Included in the CAP is €15bn from the Next Generation Fund to support climate change initiatives in the Just Transition Programme to support rural areas to make structural changes necessary in line with the European Green Deal, Farm to Fork and the Biodiversity Strategies.
• This funding is added to Pillar 2 funding and is available up to Dec 2024. It will be incorporated in Member States CAP Plans.
• IFA has targeted that the value of Direct Payments post 2020 to be set at €2bn/yr. for next 7 years (€1.8bn/yr. currently).
• The Commission proposals are to be discussed by EU Council Heads of State June 19^th and agreement in July. Full package to be agreed by Q4 for implementation from Jan 2021.
• If the Budget is agreed, EU CAP transition rules will mean various farm schemes will operate in 2021 under the “new money old rules” criteria. The details of the next CAP will not be finalised for 1 to 2 years.
• This will impact on the Basic Payment Scheme as a reduced Budget will cut payments.
• For schemes like GLAS, TAMS, ANC’s, BDGP and Sheep Welfare funding will be taken from the next programming period and will reduce the next plan to either 5 or 6 years depending on length of transition.
• The main points in the New Green Deal Farm to Fork + Biodiversity Strategies include;
  • Reducing the use of chemical pesticides by 50% by 2030.
  • Reducing nutrient losses by 50% and the use of fertilisers by 20% by 2030.
  • Reducing the sales of antimicrobials for farmed animals by 50% by 2030.
  • Revising and improving animal welfare legislation based on scientific evidence.
  • Increasing Organic farming to 25% of EU land area by 2030.
  • Clarifying competition rules for collective initiatives to strengthen farmers position in the supply chain.
  • Developing a Green based model rewarding farmers for Carbon sequestration through CAP or market.
  • Planting 3 billion trees by 2030.
  • Reversing the decline in pollinators.
  • Restoring 25,000km of the EU’s rivers to free-flowing state.
  • Protecting 30% of the EU land and sea areas – extension of Natura (Ireland at 13%).
  • Stimulating sustainable food consumption and promote affordable healthy food for all.
• With Government talks at a crucial stage, IFA is undertaking a lobby of key rural TDs and senators this weekend on key issues for farmers.

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Beef

• Latest Beef price update. 4/6/2020. Steer base €3.60/kg. Heifers €3.60/3.65. Young Bulls R/U €3.60/kg. Cows P/O €2.80/2.90/kg.
• Supplies. 31,049 cattle slaughtered for w/e May 31^st, of which steers were 10,349 (33%), heifers 9,162 (30%), young bulls 2,779 (9%) and cows 8,202 (26%). Total YTD slaughter is 699,665 compared to755,145, in 2019, a 7.3% decrease.
• Official Prices. DAFM reported Irish R3 steer prices for w/e May 31^st. was €3.81/kg incl vat. Heifers R3 €3.87/kg. Y Bulls O/R/U €3.47/€3.69/€3.81/kg. Cows P/O/R €2.85/2.95/3.15/kg.
• UK cattle prices. ^. AHBD report another 7.5p/kg increase in cattle prices for w/e may 31^st. R3 steers at £3.51/kg, equivalent to €4.15/kg incl vat.
• Official cattle prices reported to the EU Commission on May 31^st. R3 Young Bulls c/kg excl vat; EU Average €3.48/kg +3.14c/kg, Germany €3.53/kg, France €3.65/kg, Spain €3.49/kg, Austria €3.48/kg Italy €3.77/kg Poland €2.82/kg. Steer Prices; Ireland €3.62/kg, UK €3.90/kg. EU Cow price €2.66/kg +5.16c/kg. Heifers €3.60/kg +2.2c/kg.
• Live Exports. 5,463 cattle were exported in the week commencing 18/5/2020, 4,125 to EU (Except NI). Live exports for 2020 amount to 155,441 compared to 202,997 in 2019.
• Calf exports of 120,493 year to date.
• Keep up to date on all IFA work on ifa.ie/covid19.

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Sheep

• Lamb Price. For 4/6/2020. Strong demand. Factories paying 20/30c/kg over quotes. €5.90/6.00/kg paid. Top prices €6.15/kg paid to 21kgs.Ewes €2.60/2.70/kg.
• From Jan to May lamb price averaged €5.71/kg, up 34c/kg on 2019 levels.
• 57,811 sheep were slaughtered at sheep export premises the week ending May 31^st, compared to 62,610 in the same week of 2019. Sheep slaughtering’s for 2020 are 4% up on 2019 at 1,080,355 head.
• Supplies are expected to continue to rise as the new season lambs becomes fit and ready for sale. The advice is as always – move lambs as they become fit.
• In the UK for week ending May 30^th lambs made £5.27/kg equivalent to €6.24/kg.
• Main New season Bord Bia Lamb TV promotions running from June 1^st to 21^st. Second wave from July 13^th to 28^th as part of EU Lamb Try it-Love it campaign.
• Quality Assurance. IFA has called on factories to increase the QA bonus to 30c/kg in order to increase the number of sheep farmers in the Quality assurance scheme from 12,000.
• IFA will continue to publish lamb prices twice weekly and all of the latest data is on ifa.ie