Farmers and meat processors clash over cattle prices

LIVESTOCK farmers and meat processors clashed yesterday over cattle prices.

The Irish Farmers’ Association said winter finishers are furious with the factories over the way they have attempted without market justification to manipulate a pull in quoted beef prices.

However, Meat Industry Ireland, representing the processors, insisted there are no questionsto be answered on the cattle price returned to producers by the industry.

IFA National Livestock Committee chairman Michael Doran said cattle finishers were strongly resisting the price cuts from the factories which will drive finishers out of business.

“Any move by the factories to drive down prices will compound the losses for winter finishers and bankrupt many efficient operators,” he said.

Mr Doran said prices in Britain are strong and the sterling exchange rate has improved since Christmas. Europe has a beef deficit of 600,000 tonnes.

Brazilian imports into the European Union are severely restricted.

Meat Industry Ireland spokesperson Cormac Healy said that Irish cattle prices have increased by almost 40% since 2003.

While today’s prices are behind the levels of this time last year, for many valid reasons, they are still considerably ahead of price levels in 2007, 2006 and 2005.

Mr Healy said that Meat Industry Ireland conservatively estimates that, at today’s values, €45-50 million may be the loss to the industry in 2009. On top of this, tallow and other by-product prices are under pressure.

The economic recession continues to deepen across Europe with projections on retail spending and job losses worsening by the day.

Beef is not immune from these pressures and consumer demand continues to be focused on the best value offerings. Sales of high value steak cuts remain weak.

Mr Healy said the competitiveness of the Irish processing sector is also challenged by higher labour and energy costs than those of its EU competitors.

However, Irish Cattle and Sheep Farmers’ Association beef committee chairman Seán Scully said there has been a drop of €100 an animal in prices from this time last year. Prices are also running €100 a head behind British prices.

“It has been a disastrous year for winter finishers. We need someone to show leadership in guaranteeing a supply into the continental markets going into the future,” he said.