Beef Price Cuts Opportunistic, Irresponsible and Reckless – IFA

IFA Livestock Chair Declan Hanrahan said the relentless cuts to beef price by processors is opportunistic, irresponsible, reckless and without basis.

He said at a time when beef supplies in the UK and across the EU are extremely tight and demand is strong in these key markets, the behaviour of factories here is unacceptable and must stop.

“We are told by Bord Bia and the factories we must be Quality Assured to compete. We have delivered the standards on our farms. Winter finishers have invested heavily in stock and inputs to have supplies for factories at this time of year. We have played our part, delivered on our commitments but factories and Bord Bia have yet again come up short for farmers,” he said.

Irish prices are currently the worst in the EU. We are lagging behind the latest Bord Bia Prime Export Benchmark Price by 24c/kg, a gap in real terms that is more likely over 30c/kg behind the markets when recent cuts are factored in.

The IFA Livestock Chairman said compounding the issue for beef farmers is the current input cost inflation; uncertainty and volatility for supplies; and prices for key inputs for the year ahead.

He said for factories to ignore the realities of the challenges and costs facing beef farmers in their opportunistic pursuit of higher margins is irresponsible and reckless and will not be tolerated.

IFA Livestock Committee members have contacted all meat factories since last Friday to meet and discuss the current beef price crisis. Not one has had the courage to come forward yet with a meeting date to engage directly with farmers on the issue.

Declan Hanrahan said if factories are not prepared to facilitate meetings with farmers, they may find themselves engaging with us in a different format.

The silence from Bord Bia since factories started undermining beef prices has been astounding.

He said there was no shortage of press releases, media comments and advertising on national radio and television when they tried to undermine farmers’ issues with their Chair, but not a word from them when farmers’ incomes are been destroyed by weak selling or profiteering of meat factories.

Declan Hanrahan said Bord Bia were quick to take the credit for higher beef prices last year, but where are they now when our key markets are being undermined by our own factories.

“The cuts to beef prices must stop. Factories must stand up and be counted in the marketplace and stop hiding from meeting with farmers across the country,” he concluded.