Factory Beef Price Cuts at Odds with Cattle Supply Situation – IFA

IFA Livestock Chair Declan Hanrahan said factories need to take a longer-term view on beef prices and stop the price cuts of recent weeks.

He said supplies of finished cattle are extremely tight with numbers, based on Bord Bia projections and the strong live export trade, expected to reduce by almost 100,000 between now and year end.

Declan Hanrahan said beef production is also down in our key markets, the UK and the EU, and this supply demand balance must deliver for Irish and EU beef producers.

“Declining beef production across the UK and the EU is a result of flawed policy decisions on CAP and damaging trade deals that have eroded incomes on suckler and beef farms, also severely undermined confidence in the sector. This will have very serious longer- term consequences for the sector and, critically, generational renewal within it,” Declan Hanrahan said.

“There must be an urgent reset from factories, supermarkets and politicians in how they view and support beef production. Suckler and beef farmers cannot and will not continue to operate at a financial loss. The evidence is there for all to see, not only in Ireland but in the UK and the EU, where production continues to fall,” he added.

The preliminary results launched by Teagasc for the 2024 National Farm survey highlight the extent of the income challenges on suckler and beef farms, average Family Farm Incomes of €13,547 and €18,101 respectively are the lowest of all sectors. Direct Payments contribute 132% of this income on suckler farms in 2024 and 87% on beef farms.  

The sector had only reached prices which reflected the actual costs of production and margins required when policy makers, factories and supermarkets started to undermine them again.

Declan Hanrahan said the simplistic narrative from factories and supermarkets of higher prices impacting on consumer purchases rings hollow with beef farmers.

He said the supermarkets are quick to use the production standards on our farms to promote beef and continually look to raise the bar but are found badly wanting when it comes to valuing this product at farm gate level and marketing this value for the benefit of farmers.

Factories can and must do more as the interface with the large multinational supermarkets in returning strong prices to farmers.  Simply rolling over and cutting prices to farmers is not good enough.

Declan Hanrahan said if factories do not stand stronger in the marketplace, they will be the first to lose out.  Farmers will not continue to produce cattle at the current levels of investment required when there is so much volatility.

He said the UK is doing bilateral deals that gives more access to their markets.  The EU is in the process of trying to conclude the Mercosur trade deal, with indications that discussions with Australia could be recommencing.

Declan Hanrahan said any additional access for cheap beef would only serve to undermine our prices; it is vital our Government stand firm in rejecting any deals that provides more access to the EU market.

“To deliver long term viable prices to suckler and beef farmers factories, Bord Bia and our Government have key roles to playa.  Factories can and must stand firm in the marketplace, beef supplies are tight, demand is strong, and they must maximise the opportunity that exists to return higher beef prices to farmers supported by Bord Bia highlighting the standards our beef is produced to,” Declan Hanrahan said.

The Government must ensure the vital EU market for Irish beef is not undermined by allowing additional access for cheaper produce in trade deals that all too often trade off farmers for other sectors.