Irish Meat processors control beef prices
If only our Government was able to control public spending like our meat processors control beef prices, then there would be no need for last weeks emergency budget.
In fact, we would probably be the envy of all the rest of the EU. As it stands we are not and our beef farmers are most definitely not the envy of any farmer in other beef-producing countries.
In pure and simple English, the Irish beef processors are just not treating the farmer fairly or properly. How long it can continue, I'm not sure, but I am sure that it is not a sustainable situation. When the increased costs and expenses over the past 12 months are taken into account, it is nothing short of disgraceful to see the factories paying prices of 40c/kg less at the moment than what was being paid this time last year.
I know of a few farmers currently selling R grades at 308c/kg, whereas in early April 2008 they were getting 347c/kg. Forty cent/kg on a carcass weighing 400kg equates to a whopping €160. If a farmer is selling 50 animals, he or she is down €8,000 on price alone.
It is time for someone to step up and call a halt. I do not say this lightly especially in the current climate but I feel that the situation is a lot more serious than the powers that be are taking it to be. No farmer can sustain those types of losses to his income.
Maybe I am missing something obvious and if I am I would welcome the MII propaganda machine to explain to me how our very own meat processors are able to pay our neighbours (and importantly also our biggest market) 28c/kg more for similar grade stock over in the UK.
In any case the general quotes for O, R and U grades remain at 298c/kg, 308c/kg and 314c/kg respectively. Good underage heifers are commanding a 6c/kg premium over the steer price from most of the factories.
It is possible to bargain for 302c/kg for O grade steers and 314c/kg for Rs and this is common enough, especially in the northern half of the country. Plants further south are a bit stickier. Prices of 300c/kg for Os and 311c/kg for Rs were reportedly got in Kildare while Dunbia was mentioned as paying a little more. They were also mentioned as not being interested in cattle killing out over 400kg.
Staying in the north east, Eurofarm Duleek was said to have paid 325c/kg for heifers.
Prices in Donegal Meats show no change for the quality assured R and U grades at 314c/kg and 322c/kg with a bit more also on offer for the heifers.
IFA's Michael Doran said that cattle prices should be at least another 10c/kg up from where they are and urged the factories to stop manipulating the market. This was echoed by ICSA beef chairman Sean Scully, who added that farmers have been questioning what they believe are excessive trim levels and fat scores in some factories recently and that the situation is being monitored on an ongoing basis.
The general run of quotes for cull cows is in the 258c/kg to 269c/kg range. Donegal is paying tops of 286c/kg while tops in Moyvalley is 280c/kg for good quality cows.
The cattle trade improved last week according to Bord Bia, as supplies remain relatively tight, with signs of some recovery in market demand. Quotes for R grade steers are generally in the region of 308-311c/kg. Heifer prices are generally 3-6c/kg ahead of steers for select lots.
Cow prices picked up slightly, with quotes in the region of 258-268c/kg for 03 grade animals.
In the UK, demand for hindquater cuts has shown some signs of improvement with a somewhat better trade reported for ribs and striploins. However, there has been a seasonal slowdown in the forequarter trade. Reported prices from the AHDB for the week ended March 29 showed a slight increase in the average GB R4L steer price to Stg 286p/kg dw (equivalent to 329c/kg inclusive of VAT dw).
On the Continent, demand for forequarter cuts has slowed seasonally while hindquarter cuts are reported to be picking up slightly in most markets as consumers stock up in advance of the Easter period.
