Banner leading the way in tackling beef crisis

Local farming and mart representatives are leading the way in the battle to prevent hundreds of suckler cow producers facing “decimination” in the wake of the latest beef “crisis”.

Minister for Agriculture Simon Coveney has been asked to take urgent action to deal with the crisis affecting thousands of beef producers at a meeting organised by the Clare Fianna Fáil Agriculture Committee. Their growing concern is highlighted in figures from the Teagasc National Farm Survey 2013, which show the difficulties facing suckler farmers and beef finishers. The figures show that, on average, net losses on suckling enterprises were 167% higher in 2013 than in 2012.

“Suckler farmers lost an average of €123 per hectare, which is more than twice the level of the average negative net margin in 2012. In terms of loss per cow, the figure was €171, more than twice the 2012 figure, clearly representing an unsustainable level of losses,” said ICSA president, Patrick Kent.

“Cattle finishers also fared badly generating, on average, a net loss of €133 per hectare in 2013. This loss per hectare is 166% higher than that incurred in 2012. Of even greater concern is the fact that there doesn’t seem to be any end to this crisis in sight, with the Teagasc Mid-Year Outlook predicting a further decline in margins for cattle finishers this year, despite lower costs of production, ” he added.

The meeting, which was held in the Radisson Blu Hotel on Friday night, was attended by Fianna Fáil agriculture spokesperson Éamon Ó Cuív, Munster FF councillors, Pat O’Rourke from LMC in Northern Ireland and by mart representatives.
Meanwhile, an ICOS delegation of mart managers and chairmen, led by Michael Spellman, chairman of the ICOS Marts Committee, emphasised to Minister Coveney at a separate meeting the urgency of finding practical solutions to obstructions being imposed on the traditional trade between Northern Ireland customers and livestock marts in the Republic.

Liam Williams, chairman of Clare Mart and Martin McNamara, general manager, also attended this meeting.
While recognising the importance of the factory kill, ICMSA chairman Martin McMahon has warned that local suckler farmers face “decimination” and has called for the re-introduction of the suckler cow premium of €200 per animal, to make the enterprise viable again for local producers.

He said the return of the €80 animal welfare premium for weanlings, instead of the current geometric breeding index, would also help revitalise suckler farms, which have been badly hit by falling beef prices and rising costs for feedstuffs, fertiliser and silage.
“Clare beef and suckler farmers are in crisis. Action needs to be taken now to address issues like the ‘numerical cattle’, which is affecting the sale of Clare cattle in the North because it will be too late when an influx of cattle come back into the market next September,” he said.

Clare IFA chairman Andrew Dundas, who led a protest at multiple retail outlets in Limerick last week, acknowledged the situation facing local suckler producers is “very serious” and that the obstacle concerning “numerical cattle” is a huge issue.

Accusing meat processors of “making up the rules” by imposing new penalties when cattle are plentiful, he stressed action has to be taken by Minister Coveney and his counterpart in Northern Ireland to increase live exports.
Councillors at the Radisson meeting identified a number of barriers to this trade and called on the minister to ensure the smooth operation of the live trade market.

Issues around the Bord Bia levies imposed relating to value of the animal, as opposed to a transaction fee, was strongly articulated. Credit assurance for exporters was also raised and the meeting felt that a consistent EU policy should be pursued.

The meeting also heard that the most immediate issue that needs to be tackled is barriers to North/South trade, which is inhibiting Northern buyers from purchasing Southern cattle. This is a direct consequence of labelling matters and has resulted in a situation where cattle reared in the South and finished in the North can neither be labelled as cattle with Irish or British origins on supermarket shelves.

The Dowling report, published recently in relation to live trade by the Department of Agriculture, outlines that this issue can be resolved if there is the political will.

The councillors also called on Bord Bia to engage actively in sourcing new markets for live animals, while further developing existing markets. There were strong opinions that the current Quality Assurance Scheme could be improved and applied more effectively.
A steering group has been established to work on these issues. The group will meet with mart representatives, live exporters and Northern buyers in the coming weeks.

Concluding the meeting, Éamon Ó Cuív expressed concerns around the protection of the national suckler cow herd. “In the longer term, there is a need to ensure the proper functioning of the live trade market as our largest food export and to ensure a fair balance between retailers, processors and farmers to ensure the future of the family farm in Ireland,” he stated.

By Dan Danaher