Farmers warned beef disruption will not solve difficult market conditions

MEAT Industry Ireland (MII) has warned livestock farmers that disruption of beef processing activity will do nothing to solve the current difficult market conditions in the cattle and beef trade.

The Irish Farmers Association protested last week outside three meat plants over cuts in the prices producers are being paid for cattle.

It warned that the slump in prices will erode their incomes and force many winter finishers out of the beef industry.

But the MII, representing the processors, has again pointed out that livestock prices are a reflection of the European Union beef market facing tough challenges presented by the fallout from the international credit crisis.

It said this fallout is in the form of weaker consumer spending on beef generally, especially on higher value cuts, weaker currency exchange rates, most notably sterling, and the reduced values of hides and offal.

MII director Cormac Healy said IFA references to strengthening beef prices in export markets is selective and continues to ignore the price premium of domestically produced beef over imported Irish product.

“Irish beef processors have delivered year-on-

year cattle price increases to beef farmers where the market conditions permitted. Today, the level of cattle price, which we acknowledge is hurting beef finishers, is a reflection of beef market conditions. This, however, does not justify the ‘shoot the messenger’ approach being adopted by the IFA.

“The reality is that beef processing is itself under extreme pressure as evidenced by recent announcements on job losses in the sector,” he said.

Mr Healy said MII believes the Beef Forum, chaired by the Department of Agriculture, should be immediately reconvened.

It could consider what measures could be introduced to alleviate the pressure on both beef finishers and beef processors. The reality, he said, is that the marketplace cannot always provide the solution, he said.

Meanwhile, the Irish Cattle and Sheep Farmers Association Beef Committee chairman Sean Scully said the disposal pattern of finished cattle is changing as farmers continue to resist downward pressure on beef prices.

It’s that time of year when all involved in the beef industry have an anxious few weeks. There is a worrying factor creeping into the disposal pattern of finished cattle.

“There are certain signs at the farm gate that things are going to change radically in beef production in the coming year,” he said.Mr Scully He said there are indications that farmers are not intending to have an intensive beef finishing system in place for next winter.

“People involved in the industry at all levels must address these problems within the next couple of weeks and if the retail sector wants a continuous supply of beef products they must be prepared to reward the producers.

“As is evident from our study of a boned out heifer in recent weeks, there is a profit to be made in the sector. A more equal distribution of the profits will help keep the beef producer in business.” he said.