Beef sector confidence at low ebb, farmer groups tell industry forum
Mr Healy was speaking at the Beef Forum, chaired in Dublin by Agriculture Minister Michael Creed, at which issues within the industry were discussed by the main farmer unions, the meat factories and other key stakeholders. The IFA leader rejected the suggestion that farmers can attain profitability by simply producing more animals for slaughter.
“Growing output alone, without improving incomes on livestock farms is an unsustainable strategy for the Irish beef sector, which is the country’s largest farming sector, worth €2.4bn and involving 80,000 farmers. Meat factory prices must rise.
“With the forecast for an additional 100,000 head of cattle next year, a strong live export trade is vital for calves, weanlings, stores and finished cattle.
“Live exports are essential for competition and to support market balance and viable prices, as well as additional market outlets.”
He also called on the Department of Agriculture to increase resources and dedicated personnel on market access and to prioritise the live trade. He said the minister must work to remove the barriers on the live trade to the North and Britain.
Mr Healy said direct support for the suckler herd must be increased to €200 per cow if beef production is to continue to its key role in Ireland’s rural economy. He cited an IFA-commissioned study by Alan Renwick, of UCD, showing every €1 in direct support to the beef sector underpins €4.28 in output in the economy and all of this remains in rural areas.
Citing figures from 2011 to 2015, the ICMSA estimates that farmers have lost nearly €80m through the workings of the QPS grid introduced by the meat plants. The grid has cost farmers €15m per year on average.
“Even now, years after it was introduced, farmers or even factory agents have no confidence or certainty judging where cattle would ‘kill-out’ on the grid,” said ICMSA president, John Comer. He said a review would be essential to restore confidence .
Meanwhile, the ICSA says its membership is considering downsizing its output as the industry cannot deliver sustainable prices for beef. The group cites European Commission reports projecting further downward price pressure to follow trade deals such as CETA, TTIP and Mercosur.
ICSA president, Patrick Kent, said: “With the uncertainty around Brexit, and the clear signal from the beef processors that they see Brexit and weaker sterling as a reason to cut beef price, it is clear that the Foodwise 2025 strategy of massive expansion of our output (to €19 billion) is now dead in the water.”
Macra president Seán Finan said the Beef Forum has delivered little for beef farmers. He warned that without a clear vision for beef price and income, Ireland was jeopardising a beef industry worth over €2.1bn to the economy, equating to 30% of agricultural output.
