Nov 13th, 2009

ICMSA say growing gap between Irish and UK beef prices must be bridged

In the month of October, the gap between Irish and UK beef prices has grown by a further €60 per head bringing the gap to over €150 per head at a time when Irish beef farmers are on their knees. There is absolutely no justification for such a price gap between Irish and UK cattle prices and this gap must be bridged immediately by meat processors, according to Mr. Martin McMahon, Chairperson of ICMSA’s Beef and Cattle Committee.

‘The facts demonstrate that since the start of October beef prices have actually increased in the UK while prices have fallen in Ireland with the result that the average steer in Ireland is now being sold at €150 less than its equivalent in the UK. At the start of October, the gap stood at €90 per head. The reason the gap has grown is simple. With the increased kill over the past month, meat processors are simply taking advantage of the increased supplies and are profiteering at the expense of farmers by pulling prices. These cattle are now being sold at a loss and farmers will simply not be able to stay in the business unless prices return to sustainable levels. Once again, our processors take a short term benefit with no account taken of the long-term damage to the overall sector’, stated Mr McMahon.

“The UK accounts for over fifty percent of Irish beef exports and prices are rising in that market so the drop in beef prices over the past month simply cannot be justified. The cost of the price gap for Irish farmers on steers alone is over €11m for October. Farmers cannot afford such losses and yet again they must appeal to the processors to pay fair prices that will safeguard the future of the sector and ensure a supply of Irish beef’, continued the Beef Chairman.

“Our main market for beef over the past month has seen increased beef prices and it beggars belief to see processors pulling prices here and taking extra profit themselves when they know that the beef farmers are facing extraordinarily difficult circumstances’, concluded Mr. McMahon.

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