Price Power Balance Shifts Towards Producers
IRELAND - IFA President Padraig Walshe said farmers are not prepared to sell cattle without a very substantial price increase. He said finished cattle supplies are extremely tight and factory procurement managers and agents are finding it impossible to get stock at current price levels ranging from €2.97/kg (106p/lb) to €3.14/kg (112p/lb).
7 January 2008
2 minute read
* "Brazil is now out of the equation. Finished cattle supplies are not available in any volumes in either Ireland or the UK and retail demand remains very strong." |
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IFA National Livestock Committee Chairman John Bryan.
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He said some small numbers of stock had moved at pre-Christmas price deals of €3.14 – 3.17/kg (112 – 113p/lb).
Padraig Walshe said “finished cattle supplies are extremely scarce and farmers with cattle to sell have something factories desperately need. There was a full sell out of beef in both the UK and domestic markets over the Christmas period and there is nothing left in stock. Brazil is now out of the picture and retailers cannot plan for any availability of Brazilian beef considering the recent decision of the EU Commission.”
IFA National Livestock Committee Chairman John Bryan said cattle feeders are determined to secure higher prices for finished stock to cover the substantial feed price increases this year and leave a reasonable margin. He said the dynamics have changed fundamentally since before Christmas. “Brazil is now out of the equation. Finished cattle supplies are not available in any volumes in either Ireland or the UK and retail demand remains very strong.”
John Bryan said factories had the power on price prior to Christmas with large numbers of cattle coming off grass. The price power balance has now shifted to the farmer. Cattle numbers are scarce and farmers must demand a major price increase.
John Bryan said “factories need the cattle and now is the time for cattle farmers to insist on a price that covers production costs and leave a reasonable margin. Factories need to respond positively to ensure a year-round cattle supply.”
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