Factories' ‘scaremongering’ tactics deserves ‘all guns blazing’ rebuff by farmers, says ICMSA
ICMSA call out factories 'scaremongering' farmers over pricing in live and slaughter trade.
Factories were called out on their "scaremongering" attempts at controlling pricing by the Irish Creamery Milk Suppliers Association (ICMSA).
The chairperson of ICMSA’s Livestock Committee, Michael O’Connell, has ridiculed the “obviously transparent” attempts the factories have made to control both the live and slaughter trade.
Mr O’Connell said this “scaremongering and bluffing warranted nothing but an ‘all guns blazing’ rebuff by farmers”.
He continued by saying that far from anticipating any downward movement in price, factories had always employed these tactics when they saw a tightening of supplies coming down the tracks.
Mr O’Connell went on to advise farmers that: “Our advice is to be very sceptical of the ‘control mechanisms’ that factories are trying to apply; they are in their peak Christmas ‘kill’ period and the demand for beef is intense.
"As we always say, the ‘data doesn’t lie’ and slaughter throughput has drastically reduced versus 2024, and we have all read and heard the factories expressing frustration about the stability of their future supplies of cattle.
“Where was the stability in farmers’ business models when factories undermined and ‘blackguarded’ farmers for the past 20 years? Factories weren't too worried about the stability and viability of the farmers producing cattle then.
"We are sure there is a fine, bulky reserve of funds accumulated from years of underpaying farmers that can be used to pay the present prices for cattle”, he said.
The ICMSA livestock chairperson said this week had seen factories attempting to cut the prices they were paying for prime cattle, including cull cows, as well as talking down the availability of flat prices for traditional breeds — specifically Angus cattle.
He dismissed it as “auld chat” commentary emanating from the factories about the weather, bringing stock out, and cattle being €2/kg ahead of where they were this time last year.
“Sooner or later, the factories are going to have to accept the reality that farmers cannot continue to purchase and feed cattle to be ‘at the mercy’ of the factory when they are fit to kill.
"That’s a massive outlay on the part of the farmers and the element of ‘gamble’ has to be minimised with factories respecting the investment farmers are making,” continued Mr O’Connell.
The ICMSA chairperson said until the factories were willing to give that degree of respect and recognition to the position of the farmers, then the farmers were obliged to look after their own interests.
“Farmers need to sell hard; they should meet the factories ‘all guns blazing’ and tell them that if they need cattle to fill their Christmas orders, which they do, then they have to pay. Call their bluff: they want the cattle, let them come out and buy them,” he concluded.
