ICSA: Bring beef factories before Oireachtas over price 'collapse'
Beef farmers are facing a "crisis of confidence" due to falling factory prices, the Irish Cattle and Sheep Farmers' Association (ICSA) said.
The newly elected chair of the ICSA Beef Committee, Sean Sherman said farmers are unable to plan due to the "price collapse" and are "questioning the future of the sector".
The Laois farmer, who was elected at last week's ICSA AGM, said the scale and speed of the recent price drop is “simply incomprehensible” to farmers.
"Right now, farmers are receiving around €1.10/kg less for cattle than they were at the beginning of December. That equates to a loss of approximately €450/head for farmers.
"That is completely unsustainable for any beef farmer trying to make a living,” he said.
Beef
Sherman said farmers had made "rational and justified" decisions to hold cattle into the spring "based on clear market signals".
"With the kill projected to be significantly back in the first quarter, farmers were absolutely within their rights to expect that prices would at least remain stable.
"Instead, factories have cut prices dramatically, despite the kill being down by over 62,000 head so far this year.
"That represents a drop of approximately 16% compared to the same period last year and completely ignores the basic laws of supply and demand," he said.
ICSA
The ICSA Beef chair said "farmers made decisions in good faith, expecting to at least cover their costs this spring".
"Once again, those expectations have been completely undermined. It also defies logic that Irish beef prices are around 30c/kg behind those in the UK and across Europe.
"Farmers are rightly demanding to know why we are at the bottom of the EU price league," he said.
Sherman said it is now time for full transparency and accountability from processors.
"Meat Industry Ireland and factory management need to be called before the Oireachtas to explain what is going on.
"Farmers cannot continue to operate in a vacuum where prices can be cut at will without explanation. Beef farmers need answers. They need clarity.
"And above all, they need a system that allows them to plan with some degree of certainty about their future," he said.
