ICMSA: Farmers going ‘off the grid’ to slaughter cattle due to prices

DAIRY farmers are going “off the grid” to slaughter cattle due to dissatisfaction at the prices being delivered by meat factories using the QPS beef grid, says the ICMSA.

Kevin Connolly, chairman of the ICMSA’s beef and cattle committee, estimates that almost 75% of steers are getting at or just around the absolute base price payable under the MII beef grid.

Based on Department of Agriculture, Fisheries and Food figures on the cattle kill from April to November, Mr Connolly said a breakdown of that 75% was even more revealing: of the 75% paid prices at or below the base price, 53% are getting less than base price, with only 22% getting the base price.

“It is quite clear that the vast majority of farmers have not benefited under the grid and, in particular, dairy farmers cannot benefit under this grid,” said Mr Connolly.

“It will surprise no one to learn that farmers want to get their cattle killed off the grid. With the reduced kill since early December, more and more farmers are finding that factory agents are now prepared to buy cattle ‘off the grid’ or ‘on the grid’ with some adjustments. If your own agent will not give you this option, ICMSA suggests that farmers should seek out other agents who will give this option,” he added.

This view was echoed by IFA national livestock committee chairman Michael Doran, who has advised cattle feeders to hold out on prices. He said €3.36/kg of a base price has been paid for steers and €3.42/kg to €3.50/kg for heifers and bulls. Quality cows have made €2.94/kg to €3.08/kg. British cattle prices are at €3.61/kg. EU cattle prices range from €3.58/kg in France to €3.95/kg in Italy for R grade males.

Mr Doran said: “Finishers must dig in on cattle prices and strongly reject the scare-mongering and concerted efforts of the factories and agents to undermine beef market confidence and cattle prices.”