Cattle number decline to be reflected in strong prices for all categories

FARMERS can expect strong prices for all categories of livestock in 2012, according to Michael Guinan, the new chairperson of ICMSA’s beef and cattle committee.

Mr Guinan said it was quiet clear from analysis released by Bord Bia yesterday that finished cattle numbers in 2012 will be down between 50,000 and 80,000 head. This output reduction will force meat plants to compete for cattle, ensuring that farmers will be able to dictate the prices at which they sell their cattle. With the number of 18-30 month cattle down 129,000 head on October 1, 2011, it is clear that meat plants will find it more difficult to source cattle, he noted.

“The first thing to note is that farmers producing beef have been operating in a loss-making situation for many years and current prices are required to keep the farm business viable,” Mr Guinan said.

“Farmers are operating in a more positive environment but that progress is coming from a very low base over the last decade and we should also acknowledge that we operate in an increasingly volatile market strongly influenced by outside factors — such as the current economic crisis. Policymakers cannot ignore this fact.”

The ICMSA’s new beef spokesman said with EU beef production projected to continue to decline up to 2018, beef farmers must set out their strategy to ensure the maximum price is passed back to beef and cattle producers.

“The changing EU beef supply balance will provide opportunities for the Irish beef and cattle sectors and it is ICMSA’s view that new market opportunities will arise for both beef and live cattle of all ages. It is the responsibility of An Bord Bia and the Department of Agriculture, Food & Marine to ensure that Irish beef and cattle have access to these markets under reasonable conditions and it then is up to our industry to avail of these market opportunities.”