Aug 14th, 2009

McMahon says live exports will continue to grow until Irish processors give farmers a fair margin

Responding to comments by Meat Industry Ireland on the growth in live exports from Ireland, Mr. Martin McMahon, Chairperson of ICMSA’s Beef and Cattle Committee, said that the level of live exports from Ireland is directly related to the price of beef being paid by Irish beef processors and if they want to keep Irish cattle in Ireland, they will have to pay a price that can compete with prices in other European markets and leave a reasonable margin for the farmer.

‘The facts are that there are over 90,000 farmers involved in cattle and beef production in Ireland and the story of 2009 has been one of declining beef prices relative to 2008 and heavy losses being suffered by cattle and beef producers. The reality today is that the average Irish steer is getting about €100 less per head than the equivalent animal in the UK. Calf, weanling and stores prices are also well back on 2008 and without live exports, the position of these farmers who are already facing mounting losses would be very substantially worse. The live exporters have built up good markets for Irish cattle, operate in a very professional manner, and it is absolutely essential that state agencies provide the maximum support to these exporters so that Irish farmers can receive the best price possible for their cattle, at a time when incomes are so depressed, stated Mr McMahon.

Mr McMahon said that Irish farmers are more than willing and very professional in fattening cattle but it is clearly acknowledged and supported by figures published by Teagasc that the margins from cattle rearing and fattening are appalling and this is the reason that live exports are increasing as the margin from that trade is higher than can be made in fattening these stock in Ireland. It is quite clear what the meat plants need to do if they wish to maintain their throughput: prices will simply have to increase to comparable levels in other EU markets and to a level that will leave a reasonable margin for farmers.

‘Farmers will simply not continue to produce and fatten cattle at a loss to facilitate Irish beef processors. They are entitled to a fair margin and if the Irish processors won’t pay that then they’ll export to countries and markets where they will get their margin. It’s that simple’, concluded the Beef Committee Chairman.

BACK TO 2009 ARCHIVES