ICMSA criticises lower beef prices

THE Irish Creamery Milk Suppliers Association claimed yesterday there is no basis for the downward pressure on beef prices this week.

Beef committee chairman Martin McMahon said prices should be rising to bridge the unacceptable gap that still exists between those in Ireland and those in other European Union markets.

“Farmers selling cattle this week are losing money particularly in the context of the significantly higher feed costs relative to 12 months ago.

“The prices they are receiving are simply not adequate to compensate for these additional costs and prices need to rise to reflect that reality,” he said.

Mr McMahon said Irish beef prices are still 23c/kg below prices in England, 11c/kg below Northern Ireland prices and 25c/kg below French prices with this representing a massive gap equivalent to up to €80 per head.

“There is an ongoing and growing deficit in EU beef markets and it is now well past the time that the meat plants closed this gap.

“This latest attempt this week to cut beef prices is very short-sighted.

“There had to be a realisation in all quarters that the future of the beef industry itself was what was at stake and if the sector is to develop further then prices will have to increase to a realistic level,” he said.

IFA livestock committee chairman John Bryan said in over two years he had not witnessed as much anger against the meat factories.

The latest moves by the factories to cut prices was a real kick in the teeth to winter finishers who have endured losses of in excess of €100 per head this winter.

Mr Bryan said winter finishers had provided an all year round beef supply at very high costs to enable factories service high priced consumer markets.

The response from the factories now is to take advantage of the situation for their own gain.

Meat Industry Ireland, representing processors, said earlier this week that the current difficult market situation in the beef sector is attributable to a range of factors.

MII said that despite these factors Irish cattle prices year-to-date are still about 1% up on the same period last year.