Gap between Irish and British beef prices has doubled, farmers claim

THE gap between Irish and British beef prices is now twice the level that existed in February 2009, the Irish Creamery Milk Suppliers Association has said.

Beef and Cattle Committee chairman Kevin Connolly said the gap has effectively doubled from about €60 per head in February 2009, to €125 per head in February 2010, and that is in addition to the losses the new price grid is imposing on the vast majority of farmers.

He said it may be argued that beef farmers have cried wolf in the past, but factories must realise there is now a full re-assessment of the enterprise mix on many farms.

Mr Connolly said hundreds, if not thousands of farmers, are selling their calves at 2-3 weeks as opposed to keeping them for two years and making a loss to subsidise the factories and retailers.

In the first six weeks of 2010 alone, the ICMSA calculates that 11,062 dairy calves have been exported, up 161% year-on-year.

“If the meat plants want to have stock in two years time they must realise that farmers are not fools and will not continue to supply stock at a loss,” he said.

Mr Connolly claimed the meat plants are engaging in a campaign for short-term gain but will find very quickly that their throughput will decline dramatically.

He said farmers have had enough and dairy farmers, in particular, cannot afford another loss making enterprise.

“Meat plants must immediately raise beef prices, begin to close the gap with Britain and make the necessary amendments to the beef grid if they are to convince farmers there is a future in the beef business.”

Irish Cattle and Sheep Farmers Association beef committee chairman Peter Fox accused processors of “manipulating cattle prices for their own greedy benefit”.

“On the ground, cattle numbers seem to be getting scarce and a price rise in the near future seems to be possible.

“Dairy farmers are getting rid of beef cattle also at the moment because of nitrate directive implications,” he said.

Mr Fox said the processors need to decide if they want beef from Irish farms, and if they do, prices will have to rise.