| IFA President John Bryan said there is rising anger and frustration among cattle farmers at the way the factories are systematically cutting cattle prices against market trends. John Bryan warned the factories that the price cuts must stop as their actions are undermining confidence and incomes in the livestock sector. John Bryan said farmers are particularly angry at the way factories have taken advantage of the latest weather conditions to undermine confidence at farm level by slashing cattle prices. The IFA leader said the facts are factories have pulled prices by 9c/kg or €32/head over the last 2 weeks, while at the same time cattle prices in our main export market in the UK are rising, up 6c/kg over the same period. John Bryan said the factories price cuts must stop as they cannot be justified based on market returns. “Prices on our main export market in the UK are rising and are at the equivalent of €3.40/kg. This price is a massive 43c/kg over Irish prices or €150/head. It is clear the factories have opened up a major margin between Irish and UK prices.” On cattle supplies, John Bryan pointed out that the kill to date this year is up 108,000 head and Bord Bia are projecting supplies to be back by 30,000 to 40,000 head by year end. Live exports are very strong and heading for a 8-year record level at 380,000 head. He said cattle supplies will tighten considerably as the year progresses. AIM/CMMS figures point out that there are 260,000 less cattle in the country. In addition, as well as rising UK and EU prices, the sterling exchange rate is very favourable for Irish exporters. World market supplies are tight and prices in Brazil, Argentina and Uruguay are up by over 50% on last year. The price of cattle hides are double last years’ levels at €40/head and the value of the fifth quarter is also up. The IFA President warned the factories that farmer anger was at the point of boiling over. He said there is serious mis-trust of factories among farmers and this has been compounded when producers see cattle prices being cut systematically week on week in an unjustified manner. |
Friday, 17 September 2010 16:31