Events of the past few months show just how little has changed in the beef sector since 2014 – a year when farmers were forced to stand outside the factory gates due to a price collapse fuelled by a 12% increase in cattle throughput. It was this trading environment that saw factories seize upon the opportunity to impose severe price penalties on what were classed as out of spec stock and pay a price equivalent to €350 per head less than in the UK.

It is therefore little wonder that with forecasts of an 6% increase in finished cattle throughput, farmers are not looking ahead to 2017 with any great sense of confidence.

Without doubt one of the greatest failings of the past two years has been the inability of the beef forum to tackle the real issues facing the sector and deliver meaningful change to protect farmers. There have of course been plenty of well-crafted press releases issued after each of the meetings that have taken place since autumn 2014 – but unfortunately for farmers practically zero delivery. We only have to look at the lack of delivery on actions agreed as far back as autumn 2014 to see the extent to which the beef forum has failed farmers.

The big ticket items agreed then included:

1 The formation of producer organisations which Minister Coveney, the then Minister for Agriculture and forum chair, forecast within a few years would have groups of 5,000 to 10,000 farmers negotiating with meat processors.

2 The development of a new market index, based on the different beef categories in the main markets served by Irish product.

3 Review of the Quality Payment System by mid 2015.

4 The end of dual pricing.

5 Greater use of price contracts for winter finishers to provide greater security.

6 Stronger controls in relation to carcase trim.

The fact that stakeholders around the beef forum table failed to deliver on all fronts is the reason why winter finishers are heading into 2017 in exactly the same position as in 2014. Producer groups have been shown to be the red herring that they were, dual pricing is once again widespread and, over two years later, the Department of Agriculture has made no obvious attempt to address the oversight issues around carcase trim. Why has there been no review of the QPS to ensure price differentials continue to reflect the meat value across the range of grades? It is a science-based tool that, unfortunately for suckler farmers, has become a political football which no one wants to touch. Rather than see contracts become more prevalent in the sector, forecasts of increased supplies next year have seen factories actually pull away from contract structures that shared the risk, instead forcing finishers to accept price plus contracts that offer no protection from a market collapse. At the same time, failure to deliver a transparent market index means farmers continue to have zero oversight over factory margins.

Beef meeting

Meanwhile, the IFA beef meeting held last week, was a useful platform for farmers to vent their frustration over what they see as a complete lack of commitment to the sector. Unfortunately, as Adam Woods reports on page 14, it appears to have followed a similar pattern to previous years where the immediacy of the problem overshadows the need to develop a long-term plan.

How many winter crisis meetings are needed before the economics of the system are challenged and along with it Ireland’s year-round beef production system? It is this type of leadership that we should be seeing coming out of the beef forum.

With flat year-round pricing policies now pertaining in all our main export markets, it is disappointing that Teagasc and Bord Bia have not carried out an analysis of the impact on farm profitability of moving back to a lower-cost seasonal beef production model. As Pearse Kelly of Teagasc pointed out on the night, the current suckler beef model needs a beef price of €4.55/kg just to return a modest margin per cow – is this achievable or aspirational?

If aspirational, as current markets would suggest, then clearly the model needs to change. Unfortunately, the lack of delivery would suggest that some around the beef forum table appear content with maintenance of a system where for a beef finisher to make a margin, a suckler farmer or store producer has to lose out or vice versa.

Given the obvious challenges that face the beef sector in 2017, mainly increased supplies and Brexit uncertainties, Minister Creed must review the performance of the beef forum and implement the necessary changes to ensure it starts delivering for farmers.

As chair, the minister has put himself firmly in the driving seat when it comes to forcing all stakeholders to develop and implement a strategic plan that delivers for farmers.