Beef Price Increase Not Enough to Close the Gap with Key Markets
IFA Livestock Chairman Brendan Golden has strongly criticised factories for failing to reflect the strength of the market conditions for beef in current prices.
He said prices paid by factories are not closing the gap with the Prime Export Benchmark Price which has increased by a further 4c to €3.87/kg.
The Prime Irish Price for the same period increased by 3c to €3.74/kg, leaving a gap of 13c/kg.
“Factories are dragging their heels in reflecting the true value of the market place and the 5c/kg weekly price increases are falling short of where the market is at,” he said.
He said the €3.85 and €3.90/kg being offered this week for steers and heifers is not reflective of the demand for beef and the prices paid in our key export markets.
Brendan Golden said the base line must move to €4.00/kg to reflect the current prices in the UK and EU markets.
“Supermarket demand for beef will strengthen further for Easter and with supplies extremely tight factories must increase prices paid to farmers to bring them in line with the Bord Bia published Export Tracker price.”
Winter finishers are experiencing a continual increase in production costs and beef prices must reflect this.
Brendan Golden said part of the issue is the dominance of supermarkets in the market place and our increased dependency due to the closures of the food service sector which must be called out.
He said offerings of beef at heavily discounted prices by supermarkets to drive footfall in stores is undermining the value of our product and must be stopped.
IFA’s current campaign highlights the behaviour of major retailers and the impact this has on farm incomes.
He said the Minister for Agriculture must ensure the office of the Food Regulator/Ombudsman has the powers necessary to investigate all aspects of the supply chain with robust primary legislation that protects farmers from the powers of large corporations involved in food processing and retail.