WINTER FINISHERS FEELING THE PRESSURE OF CONTINUED DOWNWARD PRESSURE ON PRICE

19 JANUARY 2018

ICSA beef chairman Edmond Phelan has slammed beef factories for putting downward pressure on prices this week. Mr Phelan said, “Processors are showing a complete lack of respect for the efforts of producers who are left in an increasingly vulnerable position as far as future viability goes. At the very minimum we need another 20c/kg to keep things going. Winter finishers also need a winter bonus, in line with the winter milk bonus, to cover the huge costs involved. ”

“If factories are serious about winter finishing, there has to be an incentive to feed cattle over a long winter. This year in particular has proven particularly expensive so far with cattle being housed early and the looming fodder crisis means that all bought-in feed will be expensive for the rest of the winter period.”

“We also see that demand for beef across Europe is improving and that UK production levels are slipping. Winter finishing is not viable with falling prices especially when market conditions are favourable for paying a better price at this time. We know there is no lack of profitability in the beef processing sector.”

ENDS