Ireland-Wintering beef cattle to lose money.

IRELAND-FARMERS WINTER OF DISSCONTENT.

THE CURRENT prices being paid to farmers are totally inadequate and farmers will simply stop winter-finishing cattle unless adequate margins can be made from beef production, according to Mr Martin McMahon, Chairperson of ICMSA’s Beef and Cattle Committee.

Speaking following a meeting with senior management of AIBP Group, Mr McMahon said: "The so-called ’annual crisis in beef production’ is with us again this year but this year is different because the losses being incurred are simply not sustainable and farmers will not repeat the mistakes of this year again. Let’s be very clear: 2009 is a very different year for everyone and will be a defining year for beef producers also.

"For marketing purposes, it is essential that Ireland maintains its 12-month supply of beef. But for this to happen winter finishers must be adequately rewarded and that is not happening in 2009. Against a background of high input prices, the economics of beef production have deteriorated dramatically and farmers will simply lose confidence and discontinue beef production. It is actually that simple," he continued.

"If farmers are to make a profit in 2009, it is essential that prices increase immediately and ICMSA made this very clear in our meeting with AIBP.

Farmers and ICMSA will co-operate in every way possible with the meat processors in seeking out and implementing measures that will improve the outlook for the sector and while there will always be areas of conflict between farmers and meat plants, we have many areas of common interest and we must pursue these matters as a partnership.

That’s the way we want the processors to view their relationship with us and that’s why meat plants must meet their side of the bargain by maximising the price paid to farmers," concluded Mr McMahon.