| The beef factories must come forward with contract arrangements at economically viable prices for winter finishers to fatten cattle next Winter/Spring, according to Monaghan IFA Livestock Chairman Andrew Boylan. He said winter finishers have been nailed economically with loss making cattle prices from the factories for the last 3 years and cannot go through another winter of losses. The IFA Livestock Leader said, “Supermarkets and factories have pushed all of the risks and losses back on top of feeders and this is not sustainable. Feeders are demanding contracts and are not prepared to feed cattle at a loss again next winter.” Andrew Boylan said some factory groups are already approaching some feeders about next winter as they realise cattle numbers will be extremely tight and they will not be in a position to meet retail contracts. The IFA Chairman said taking account of the loss making prices of last winter/spring and the higher costs this year, feeders would need prices at least 40c – 50c/kg above last year’s levels, in line with 2008 price levels. “Contracts remove the high economic risk with winter finishing at farm level and enable feeders to provide sound proposals to their bank to finance the enterprise. At retail and factory level, contracts guarantee supply and this will be very important next winter/spring, when all of the projections indicate cattle supplies will be very tight,” he concluded. |
Thursday, 02 September 2010 12:22