Beef Farmers Should Hold Firm Against Factories as Prices Rise
IFA Livestock Chairman Brendan Golden said beef farmers should resist efforts by the factories to drag prices down.
“The behaviour of some factories in trying to reduce quotes shows no regard for farmers who have made huge investments in finishing cattle over the winter months,” he said.
Brendan Golden said beef farmers know the impact from the Chinese market and will not be fooled by the usual factory propaganda in attempts to control the market place.
“Factories are acutely aware of how tight beef supplies are. They’re trying to manipulate the situation by reducing throughput. This is unacceptable and must stop. Beef prices must reflect the reality of the market place and the increased demand in higher prices,” he said.
He said Bord Bia predict supplies of beef cattle will be down by 60,000 head this year, with all of this reduction taking place in the first half of the year. Teagasc figures clearly show prices need to be in the region of €6.00/kg for winter finishers to be covered and we are still a long way short of this target.
“Farmers should sell hard and demand immediate price increases. Despite some offering lower quotes, factories are actually doing deals for 10c/kg above quotes to secure enough cattle,” Brendan Golden concluded.