IFA SAYS FARM PROFIT INCREASE ESSENTIAL TO DRIVE FOOD HARVEST BEEF GROWTH
Sunday, 03 July 2011 11:43

 

Monaghan IFA  Livestock Chairman Andrew Boylan said to deliver on the increased growth targets for beef of 40% in Food Harvest 2020, profit levels across all beef enterprises must increase significantly. He said lack of profit or low profit is the biggest obstacle to growth.

 

Andrew Boylan said the Report from the Food Harvest 2020 beef implementation group chaired by Michael Dowling was an important document on the future of the Irish beef and livestock sector. It contains a number of positive recommendations to drive growth and expansion in the sector. He said the IFA focus is firmly on increasing farm profit.

 

The IFA Livestock Chairman said strong viable cattle prices on a par with UK levels and the prices paid in our main EU export markets are essential for growth and farm profitability. "Maintaining these price levels is essential for profit. This is the challenge to the factories and it must be delivered on." He said Irish beef is now on the shelves of the main UK and EU retail multiples. Irish farmers are now entitled to EU prices.

 

Andrew Boylan said it is a major concern for farmers, that when cattle supplies exceed 30,000 head per week, prices always come under pressure.

 

The IFA Livestock Leader said Ireland must to be very careful about the projected expansion in dairy beef. He said, "First of all it must be profitable. Secondly, it cannot be used to undermine prices. That is exactly what happened in the UK, when farmers were encouraged by processors and supermarkets to keep dairy calves to beef. It proved to be a costly experience for all beef farmers."

 

Andrew Boylan said price competition is essential for the beef sector. Live Exports are fundamental to price competition and market outlets.

 

The IFA man said we must have more certainty for winter finishers.  Winter finishers need to be able to avail of the recommendation in the report of a winter finishing minimum price, from the factories this autumn.

 

On marketing and An Bord Bia's role, Andrew Boylan called for a strategy which will capture the benefits of our positive image as a producer of top quality sustainable beef in the market place and ensure these benefits are passed back to producers.