‘Farcical price cuts’ by factories

AS THE controversy on the latest round of factory price cuts for prime cattle begins to build, Michael O’Connell, chairperson of ICMSA’s Livestock Committee, has questioned the rationale behind the latest factory cuts and said that the very future of finishing cattle is now in question.

“All the evidence we have seen in the last couple of months has indicated that beef prices were heading for close to record levels and that was supported by Bord Bia figures indicating between 60 and 70,000 less cattle to be slaughtered in Ireland this year.

"Essentially, out of the blue we have this series of sudden price cuts and the levels of mistrust and suspicions won’t have been helped by a recent press article where a factory agent was quoted as saying the factories approached its bigger and more loyal suppliers in February to finish cattle for the May period due to expected tightness in numbers.

"What does that mean for these finishers who have had the carpet pulled from underneath them buying and feeding expensive store cattle for this period to face two weeks of lower price quotes?

“The obvious question – and ICMSA is asking it right now - if was there a guarantee in place for these cattle at the expense of the ‘average’ farmer? Are the finishers outside the factories’ definition of ‘bigger and more loyal ‘ now being paid less to subsidise the factories preferred finishers?

"The idea of so many cattle being fed on for slaughter indoors instead of turned to grass as usual doesn’t stack up to me and it won’t stack up for the vast number of farmers selling at present”, said Mr O’Connell.

The ICMSA official concluded by observing that we are three to four months away from the biggest purchasing and sales periods of the year and confidence will be at an all-time low unless stability is shown in the beef trade.