ICSA Beef Committee spokesperson Edmund Graham has said winter finishers are facing severe financial losses as beef prices remain well back on last autumn’s levels. “Once again, the extreme level of risk being carried by beef producers, and winter finishers in particular, is on full display,” he said.

Continuing, Mr Graham said, “I’ve been speaking to several winter finishers in recent days who tell me they’ve never lost as much money as they are losing right now. Last autumn they were buying store cattle at the going rate when beef was making around €7.80/kg. Today, when they go to sell, they are looking at quotes closer to €7.00/kg. That kind of swing wipes out any margin. When you add in feed and all the costs associated with carrying cattle through the winter, it becomes a massive financial hit.”

“We are talking about farmers who commit significant money to feed cattle through the most expensive period of the year with no guarantee of the price they will receive when they go to sell. How can any business plan around this level of uncertainty?”

He said, “We also know factories are actively looking for cattle and are booking animals weeks in advance. Yet they are refusing to stand over a price, telling farmers they will be given a quote closer to the kill date. That leaves farmers completely exposed. You are expected to supply cattle without knowing what you will be paid.”

Concluding, Mr Graham said factories are currently following a very familiar pattern. “At this time every year, we hear the same narrative about markets being under pressure or demand not being there. But in reality, this is hype being used to instil fear in farmers as a tactic to soften the trade. For them, it is all about managing throughput and messaging while farmers shoulder the financial burden and take the hits. It’s clear this system is only working for one side of the supply chain, and it is not the farmer.”

ENDS