Farm leader’s warning to factories
Amid producer fears of more cuts in factory prices, IFA Munster Vice-President Donal Kelly has threatened ’strong action’ by farmers against the first factory to bring the price under 90p/lb, “because it will not be accepted by producers who have already suffered from severe cuts in price”.
He said there was no justification to lower prices and any attempt to do so would see farmers protesting to protect incomes, “with over €70/ head being wiped off cattle prices over the past month” and returns to producers trailing prices in the North and Britain for similar type cattle.
He said the factories had not explained a difference of 15p/lb in the price paid for similar grade cattle by processors in this country and the price received by producers in Britain, where most Irish beef is sold.
“Farmers’ incomes are being wiped out because of the cuts in prices at the factories. Farmers will act against the first factory that brings the price for O grade cattle under 90p/lb. That is the lowest farmers can take, a lot less than their counterparts in Britain receive,” he said.
Mr Kelly said prices being paid for cull cows have been reduced by up to 17p/lb in the last month and factories are making a killing with the low prices.
The price drop represented up to €150/head in cow prices.
There is concern among beef producers that factory prices will be cut again soon as supply to factories increases to autumn peak levels.
