40,000 head a week cattle kill for back-end

By John Shirley

There is an extra 40,000 head of beef cattle in the slaughter pipeline for the rest of 2003 but the market should be able to absorb this without taking a serious price hit, Bord Bia market analyst Padraig Brennan predicted this week. He said that the EU was heading towards a net beef deficit for the first time since 1979.

Speaking at an ICMSA beef meeting in Ennis, the Bord Bia man predicted an average factory throughput of 40,000 a week for the rest of 2003, up 2,500 a week on the back-end of 2002. Last week the kill was 36,000 head.

"Compared to 12 months ago Italy, France and Scandinavia are taking more beef from Ireland. In spite of the euro gaining 10% on sterling and 14% on the dollar. The price of R3 grade steers in Ireland was 3% ahead of August 2002,'' he continued.

Looking ahead to 2004 the phasing out of the over 30 month scheme in the UK will challenge Irish exporters to find an alternative market for 70,000 tonnes of beef next year. However, this will be facilitated by the disappearance of the Intervention stockpile which stood at 200,000 tonnes barely a year ago, said the Bord Bia man.

In Bord Bia's first attempt at an analysis of the fallout from decoupling Padraig Brennan suggested that some unloading of cattle could begin in the second half of 2004. However, he predicted a gradual change in output rather than a big bang from decoupling.

ICMSA opt for coupled slaughter premium

The ICMSA is the first farm organisation to come out with a definite policy post Commissioner Fischler's Mid Term Review.

The organisation wants to couple Slaughter Premium but leave all other premiums uncoupled. This policy was announced at an ICMSA beef cattle meeting in Ennis this week by leader Pat O'Rourke. He said that a coupled slaughter premium would involve no applications or bureaucracy but it would help enhance the value of weanlings and calves. A show of hands at the meeting in Ennis showed widespread support for the policy that had just been announced with no hand going up against the decision.

However a survey carried out by the IFJ this week showed very low level of support among farmers for coupling of any premiums including the Slaughter Premium.

Also at the Ennis meeting ICMSA President Pat O' Rourke said that the organisation had extracted a promise from Commissioner Fischler that any new resources that came available would be targeted at calf and weanling producers.