Beef factories urged to produce viable contracts for winter finishers

BEEF factories were urged yesterday to come forward with contract arrangements at economically viable prices for winter finishers to fatten cattle next winter and spring.

Irish Farmers Association National Livestock Committee chairman Michael Doran said winter finishers have been nailed economically, with loss-making cattle prices from the factories for the last three years. They cannot go through another winter of losses.

“Supermarkets and factories have pushed all of the risks and losses back on top of feeders. This is not sustainable. Feeders are demanding contracts and are not prepared to feed cattle at a loss again next winter,” he said.

Mr Doran said some factory groups are already approaching feeders about next winter as they realise cattle numbers will be extremely tight and they will not be in a position to meet retail contracts.

Taking account of the prices of last winter/spring and the higher costs this year, feeders would need prices at least 40c-50c/kg above last year’s levels, in line with 2008 price levels.

“Contracts remove the high economic risk with winter finishing at farm level and enable feeders to provide sound proposals to their bank to finance the enterprise.

“At retail and factory level, contracts guarantee supply and this will be very important next winter/spring, when all of the projections indicate cattle supplies will be very tight,” he said.