An average fall of 10c/kg in factory steer and heifer prices over the last three weeks has been condemned by IFA Livestock chairman Henry Burns.
Burns is accusing factories of unfairly trying to damage cattle prices at a critical time for winter finishers and is calling on farmers to “hold out strongly against the factories and insist on the full value for their stock”.
He said “cattle supplies in 2015 will be back by 120,000 to 150,000 head, feeders know this and they need to dig in hard on price and resist the factory pressure. Some factories are offering to cover full transport costs or foregoing clipping charges and are trying to use this to aid in pulling prices back. Farmers need to resist this pressure and bargain hard on price and all other issues.”
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Burns also questioned the validity of the price reduction, saying: “Any slight weakness in the UK market has been more than compensated for by the continuing strength of sterling to the euro.
“The change from 80p to 73p is worth an additional 47c/kg, or €170/head. Prices have improved in Italy, with Bord Bia reporting R3 bulls up 7c/kg to €4.05/kg including Vat, while in Germany R3 bulls are making €4.22/kg including Vat. Factories are claiming they are finding it difficult to sell beef at viable prices, with the kill at little over 30,000 head/week, there has never been a better time to justify a live trade for calves and weanlings.”
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An average fall of 10c/kg in factory steer and heifer prices over the last three weeks has been condemned by IFA Livestock chairman Henry Burns.
Burns is accusing factories of unfairly trying to damage cattle prices at a critical time for winter finishers and is calling on farmers to “hold out strongly against the factories and insist on the full value for their stock”.
He said “cattle supplies in 2015 will be back by 120,000 to 150,000 head, feeders know this and they need to dig in hard on price and resist the factory pressure. Some factories are offering to cover full transport costs or foregoing clipping charges and are trying to use this to aid in pulling prices back. Farmers need to resist this pressure and bargain hard on price and all other issues.”
Burns also questioned the validity of the price reduction, saying: “Any slight weakness in the UK market has been more than compensated for by the continuing strength of sterling to the euro.
“The change from 80p to 73p is worth an additional 47c/kg, or €170/head. Prices have improved in Italy, with Bord Bia reporting R3 bulls up 7c/kg to €4.05/kg including Vat, while in Germany R3 bulls are making €4.22/kg including Vat. Factories are claiming they are finding it difficult to sell beef at viable prices, with the kill at little over 30,000 head/week, there has never been a better time to justify a live trade for calves and weanlings.”
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