Factories Are Hijacking Drought Conditions to Cut Beef Prices

IFA President Joe Healy has accused the factories of hijacking the drought conditions to cut beef prices and undermine the market. He said, “Factories are taking advantage of the drought conditions and imposing unjustified price cuts ahead of the market”.

Joe Healy warned the factories to stop price cutting and undermining the beef market. He said over the last 4 weeks, prices have been cut by 20c/kg or up to €80 per head, which is the profit margin in most cases.

Joe Healy said Agriculture Minister Michael Creed needs to get tough with the factories and demand they stop the unnecessary price rot. He said the Minister can no longer remain silent on the factories; he must demand that they show some level of respect for his work on market access and he cannot allow them to throw it all back in his face with unjustified price cuts.

IFA National Livestock Chairman Angus Woods said the beef market demand remains strong, especially around the manufacturing trade with the World Cup, and the price cuts are not justified.

Prices in our main export market in the UK remain strong and steady, with the R3 steer price at £3.79/kg, equivalent of €4.54/kg.

Angus Woods said last week’s beef kill was 33,900 head, which was in line with the numbers this time last year of 33,615 head.