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IFA Hit Back at Factory Price Cuts

10 March 2009

IRELAND - IFA National Livestock Committee Chairman Michael Doran has hit back at the factories and their agents this week accusing them of using negative and false propaganda to undermine confidence and cattle prices.

Michael Doran said factories were using their cattle agents to spread as much bad news as possible and inflict maximum damage on cattle prices.

Michael Doran said that cattle numbers had tightened over the last week and feeders are not going to part with cattle at less than €3.08/kg for R grades and €2.97/kg for O grades. He said at these low prices winter finishers are losing between €200 and €300 per head.

The IFA livestock leader said Bord Bia is reporting the UK price at £2.90/kg, which is the equivalent of €3.43/kg. Bord Bia are also reporting an increase in prices across the Continent with the price in Italy having moved up to €4/kg for R grade bulls.

Michael Doran said as supplies tighten, factories are finding it more difficult to get stock. Despite all the negative propaganda factories cannot buy cattle at less than €3.08/kg for Rs. He said some factories had paid €3.14 - €3.19/kg for heifers.

The IFA livestock leader said there is real anger among winter finishers at the way the factories have cut cattle prices and destroyed their incomes over the last number of weeks. In recent meetings he told the three main factory players AIBP, Dawn and Kepak that €3.08/kg must be the bottom of the prices and cattle prices would have to rise substantially for finishers to survive this spring.

Michael Doran said all three factory groups, AIBP, Dawn and Kepak said they are not imposing price penalties on heavy carcases over 420kgs. He said the three factory groups said they were not encouraging feeders to keep cattle to heavy carcase weights but their policies had not changed and they were not imposing any price penalty on carcases over 420kgs .

TheCattleSite News Desk



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