Factories have been caught 'bluffing again' on beef prices - ICMSA
The Irish Creamery Milk Suppliers' Association (ICMSA) has accused factories of trying to "bluff prices downwards” again.
According to Michael O'Connell, chair of the ICMSA's Livestock Committee, factories have been engaged in a "supply and demand" tactic.
He said since the re-opening of marts following the Christmas break factory agents "have been very active for all types of forward and beef cattle".
O'Connell added: "The figures we have heard being bought in sales - in particular fat stock sales - is a sure sign that factories are expecting barren times 60 to 70 days from now.
"As highlighted before, the mind games from processors are like dodgy weather forecasts that tell you one thing is going to happen only for another completely different event to occur."
ICMSA
The ICMSA's Livestock Committee chair believes that it is evident from cattle numbers and supplies around the world that cattle are tight and finished cattle are tight.
"There is room for negotiation with processors at present, up to 10c/kg more for in-spec underage cattle with up to 30c/kg Angus bonuses being paid with all the talk being that flat prices will shortly be on the table again.
"€7.10c/kg base for steers and €7.25c/kg for heifers are prices we are reporting as paid to members although discussion with agents and factories are beginning at €7.00 and €7.10," he added
According to O'Connell the ICMSA is telling farmers to "battle hard for prices".
He said marts are a "hugely viable option" and some prices can be higher than the equivalent cattle types in factories.
Bluetongue
According to O'Connell the fact that an outbreak of bluetongue was confirmed over the weekend and that the bluetongue virus has been identified in three more herds in Co. Wexford should not be used to "pressurise" farmers to kill earlier.
"There's no effect on humans and no discernible effect on demand," he added.
Separately the ICMSA's Livestock Committee chair said he is disappointed about recent closures of factory boning halls and a plant by processors.
However he said this has nothing to do with cattle supply.
"Live export has put manners on processors, the exporters have secured good markets for calves, weanlings and forward stores.
"We would encourage processors to have a look at how their businesses are run before pointing the finger at a low supply base.
"Our main destinations for cattle across Europe are a lot more competitive for our beef pricewise than here, so don’t believe for a second that there isn’t options for Irish store cattle”, O’Connell added.
