ICSA say only dairy sector can take comfort from strong product prices
Gabriel Gilmartin, president, commenting on the Teagasc mid-term review of markets and farm incomes, said tight margins in cattle and sheep mean these sectors are extremely vulnerable to higher costs.
Recent squeezes on beef and lamb prices are going to play havoc with cattle and sheep incomes, he warned
Mr Gilmartin said it is clear factories must start paying sustainable prices to primary producers in the cattle and sheep sectors. “Otherwise, the future will be uncertain for these industries.”
Despite a forecast strong beef prices would offset the high costs associated with the fodder crisis, ICSA beef committee chairman, Edmond Phelan sounded a note of caution.
“It is positive that R3 prices were on average 6% higher in the first half of this year compared to the same period last year. However, that trend is very unlikely to continue for the second half of 2013.”
Mr Phelan said this figure is masking the fact that heading into the busiest time of year for beef sales — late summer/autumn — factories are pulling the price of beef.
“The prices for cattle have been falling since early June, from around €4.60/kg to €4.15/kg today. This means that it is far from certain that the higher costs associated with the fodder crisis will be offset to any great degree by the output prices as the year goes on.”
ICSA sheep chairman Paul Brady added that for lamb producers, the lower prices compared to the first half of 2012 make little sense.
“We know that supplies are tight. We also know that exports remain strong.
“However this situation is not reflected in the prices being paid to producers.”
