ICSA Beef chair Edmund Graham has urged farmers to demand more for beef cattle as supplies are scarce. “Factories have been conditioning farmers to accept lower prices, but the reality is that supplies are tight, and factories are actively seeking cattle. There is no reason to accept prices as low as €4.80-€4.90/kg. The cost of inputs has not dropped and there are reasons to be very worried that costs could get worse before they get better.”

Mr Graham said that farmers cannot be expected to produce cattle at this time of year for less than €5/kg. However, he said the real puzzle is whether farmers will be able to finish cattle this winter at all, given the huge escalation in feed costs. “In our view, farmers would want contracts at €7.50/kg for next spring in order to be profitable and there is no sign of this happening.

ICSA is therefore urging all farmers to do their sums carefully. Farmers must be paid not only for the beef but also for their time and for the risk they take. There are better options out there than putting massively expensive ration into finishing cattle in a high-cost winter system.”

ENDS