IFA Inputs Project Team Leader John Coughlan said compound feed prices are out of line with ingredient costs.  He called on the industry to reduce ration prices immediately given the perilous state of the beef finishing sector.

John Coughlan said, “Many compound feed mills are not reflecting the significant reduction in cereal prices, which unfortunately for tillage farmers are back by as much as €50/t. The failure by the mills to pass through the significant reduction in cereal costs Is indicative of a major swing by compound feed manufacturers, over recent years, away from the use of native cereals to imported maize and by products. Such a move is potentially undermining the provenance of Irish food production at a time when there is an increased focus on the carbon footprint.”

“The feed sector has a duty to maximise native cereals. It has been shown time after time that livestock rations that include a high level of quality native Irish cereals consistently outperform many compound feed rations based on least cost formulations, which invariably use high levels of imported by-products. Irish cereal production not only has an extremely low carbon footprint, but also enhances biodiversity when compared to imported feed ingredients.”

Prices reported as quoted or paid to IFA Members

• Steer base €3.45/3.50/kg.
• Heifers €3.55/3.60/kg.
• Young Bulls O/R/U €3.20-3.55/kg.
• Cows €2.80/3.30/kg.
• In-spec bonus 12c/kg above base price.

Irish pig producers were left disappointed last Friday with another week when Irish pork processors decided not to follow the European market trends.

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Speaking from the Virginia Dairy Show in Cavan today, IFA National Dairy Committee Chairman Tom Phelan said farmers felt let down that their co-ops’ Brexit preparation strategy seemed to rely pretty heavily on cutting and further talking down milk prices, using farmers’ hard work in terms of increased butterfat and protein content and extra volumes to ‘soften’ the blow.

“With the exception of the West Cork Co-ops, which exceeded it, all other co-ops have paid less than the Ornua Product Purchasing Index for the majority of the last 10 months.  In fact, those co-ops have even widened the gap into July, with the main purchasers cutting their milk prices to levels over 1c/l lower than the Ornua PPI would have returned for the month.  Here in Virginia, I want to acknowledge that Lakeland Dairies have come closest to the PPI over this period,” Mr Phelan said.

“While we recognise that butter market prices have eased, powder prices have picked up on EU markets and in the case of WMP at yesterday’s GDT auction.  Latest European average and spot quotes suggest returns for an Irish product mix equivalent to a milk price of around 31c/l incl VAT –1.5c/l more than some of the larger Irish co-ops are paying,” he said.

“Today, in Virginia, where we celebrate the excellence and sustainability of Irish dairy farming, I call on co-ops to communicate how they will at least hold milk price levels to year end.  This is essential to protect the farmer confidence which is such an important ingredient in the sustainability of the Irish dairy success, and co-ops must not undermine that confidence,” he concluded.

At the conclusion of the beef talks this morning, IFA President Joe Healy said despite movement on a number of issues, beef farmers will be disappointed that there is no increase on the main issue of beef prices. He said the fact that the talks took place on the precondition that price would not be discussed was ignoring the elephant in the room.

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