There is no excuse for factories to keep prices at current low levels, according to ICSA beef chair, Edmund Graham.
He said the low take-up of Aids to Private Storage (APS) illustrates that factories are “needlessly keeping prices at an unsustainably low level”.
“Demand is clearly exceeding supply and factories have no business keeping downward pressure on prices.”
Latest European wide figures on APS indicate that Irish processors have placed just 20 tonnes of beef, or 1.32% of the EU total, into storage.
Meanwhile, the beef chair added, soaring supermarket demand in the UK has seen beef prices there continue to rally.
“So much so that prices paid to UK farmers have increased by £0.40/kg over the last number of weeks and are now at their highest point for more than 12 months.”
UK beef price
He pointed out that by June 10th, British farmers were receiving £3.63/kg which breaks the €4.00/kg mark when converted.
“Processors here have just been far too slow in getting back to realistic pricing levels and they’re just not going to get away with it much longer.”
“Processors are misguided if they believe that farmers will continue to finish beef at today’s prices.”
“Cattle cannot be fed at current prices and farmers will just stop doing it.”
“If the demand is there, factories are going to have to get real and pay a price that at least covers the cost of feeding the animals they need to stay in business.” the ICSA official concluded.