Beef groups progress

Beef farmer producer groups which can negotiate contracts for sale of cattle and purchase of farm inputs will begin to take shape before the end of the year.

Details given at this week’s beef roundtable meeting indicated that the beef producer organisations (POs) must have at least 50 members producing at least 500 head of cattle in total per year.

Members committing to trade at least 75% of their cattle through the PO is seen as an important factor for success.

POs are likely to carry out joint selling, transport, promotion, organising of quality control, use of equipment or storage facilities, management of waste, and procurement of inputs, on behalf of members, for beef or enterprises such as live exports.

Agriculture Minister Simon Coveney said, “After detailed and comprehensive stakeholder consultation, I am now moving ahead to provide the necessary legislation to give recognition and legal standing to producer organisations in the beef sector for the first time in Ireland.

I have always said that these POs are key to rebalancing the supply chain and will give farmers improved negotiating positions on issues which affect their farm margins on both the input and output side.

I will now be bringing forward the required provisions in the autumn together with consideration of possible kick-starter funding to help POs get up and running”.

Facilitators can be employed to assist POs, under the advisory services measure of Ireland’s rural development programme. Facilitators would advise on business plans, negotiation practices, best governance, promotion activities etc.

Meanwhile, the National Ploughing Championships in September has been revealed as the publication target date for Teagasc’s new blueprints for beef farmers.

Minister Coveney welcomed progress on the blueprints as a very good basis for any beef farmer to realise greater profitability.

A Bord Bia market overview at the roundtable confirmed the year-to-date finished cattle supply is down 5% or 42,000 head, and the June 1 cattle census showed 60,000 fewer males and 40,000 fewer females in the 12-36 months range. But younger cattle numbers are up 86,000 for males and 51,000 for females.

Calf registrations were up 6.6% to July 10 (116,000 extra calves included 97,000 dairy and 19,000 beef calves). The only main calf breeds decreasing are Charolais (0.5%) and Belgian Blue (8%).

Live exports to June 27 are down 20% (15% for calves, 48% for weanlings and stores, and 2% for adult or beef cattle).

Bord Bia figures show a 380kg carcase is worth 17% more compared to 2014; a 550kg store is worth 16% more; and a 350kg weanling is worth 18% more.

On the demand side, in the second quarter, beef consumption is down 4.7% in France year-on-year, 1.7% in the UK, and 1% in Germany, continuing a 6% fall since 2011.

Processors represented by Meat Industry Ireland welcomed progress on key beef issues, and said the 30-month age requirement is still a key factor across many markets, and an essential part of retailer specifications across Europe, the UK, and Ireland.

“The clear trend amongst customers is towards lighter and younger animals,” according to MII.