Beef farmers ‘need better prices’
“Unless farmers receive a direct and positive signal from the market place in 2005 that it will deliver improved returns, they will remain sceptical and cut back stock numbers
“The industry must prevent this happening and must provide the necessary incentive from the marketplace that encourages farmers to maintain stock numbers”, he said.
Mr O’Leary said Bord Bia presentations on the prospects for 2005 are very encouraging with decreased EU beef production, increased consumption and a growing deficit in the EU beef market.
Given the improved supply-demand situation that sees an EU deficit of 300,000 tonnes of beef expected for 2005, meat processors are now presented with a major opportunity.
They must generate improving returns from the market place and pass back the improved beef prices to farmers, guaranteeing the future for beef producers who will set their stock numbers accordingly, he said.
IFA livestock committee chairman John Bryan said beef finishers should demand and hold out for a base beef price of 2.80/kg (£1/lb) this January.
He said that, with decoupling, the factories must realise that cattle prices have to cover the costs of production and leave a margin for feeders.
“There is no pressure on any finisher to sell stock and prices will have to increase to meet the real costs of production”, Mr Bryan said.
