The EU Commission will have to introduce an emergency EU financial aid package for those member states where COVID-19 problems have resulted in significant market and price losses, IFA livestock chair Brendan Golden has said.
The Commission has all the data on the price and income losses pre- and post-COVID-19 and is in a position to target direct income support to the farmers in the member states that have been affected the most, he said.
“Family farmers selling 50 cattle are facing losses of €10,000. They simply cannot afford this level of loss, especially having come through two very difficult years in 2018 and 2019,” he said.
Cattle price
Golden said there are some small positive signs on the cattle price side, with some factories paying a base of €3.45/kg for steers and €3.50/kg for heifers this week as the numbers of in-spec finished cattle continue to tighten.
He said the number of in-spec finished cattle has tightened and will continue to get tighter over the coming weeks and that cow prices are also rising, with good R grade cows up 15c to 20c/kg over the last week to 10 days.
This reflects increased market demand for manufacturing beef based on higher retail sales and as some burger and manufacturing plants plan to reopen, the IFA said.
Golden called on supermarkets to pass back some of the higher revenues from consumers back down the chain to hard-pressed farmer finishers.
Financial calamity
“Agriculture Minister Michael Creed can no longer ignore the financial calamity that has played out on beef finishing farms before and since the COVID-19 crisis,” he said.
Prior to COVID-19, beef prices were extremely poor due mainly to Brexit uncertainty and exchange rate problems and farmers selling cattle were facing losses in the order of €100 per head, the IFA said, adding that beef prices have since fallen from a base of €3.65/kg to €3.40/kg and inflicted another €100 per head in price losses.
Golden said Minister Creed must add to the unspent BEAM funding and immediately put in place a direct payment scheme to help make up for the price losses on finishing farms this spring.
Last week, Minister Creed told the Irish Farmers Journal that the €20m underspend in the BEAM scheme was "actually reallocated in Budget 2020 for the BEEP 2".
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The EU Commission will have to introduce an emergency EU financial aid package for those member states where COVID-19 problems have resulted in significant market and price losses, IFA livestock chair Brendan Golden has said.
The Commission has all the data on the price and income losses pre- and post-COVID-19 and is in a position to target direct income support to the farmers in the member states that have been affected the most, he said.
“Family farmers selling 50 cattle are facing losses of €10,000. They simply cannot afford this level of loss, especially having come through two very difficult years in 2018 and 2019,” he said.
Cattle price
Golden said there are some small positive signs on the cattle price side, with some factories paying a base of €3.45/kg for steers and €3.50/kg for heifers this week as the numbers of in-spec finished cattle continue to tighten.
He said the number of in-spec finished cattle has tightened and will continue to get tighter over the coming weeks and that cow prices are also rising, with good R grade cows up 15c to 20c/kg over the last week to 10 days.
This reflects increased market demand for manufacturing beef based on higher retail sales and as some burger and manufacturing plants plan to reopen, the IFA said.
Golden called on supermarkets to pass back some of the higher revenues from consumers back down the chain to hard-pressed farmer finishers.
Financial calamity
“Agriculture Minister Michael Creed can no longer ignore the financial calamity that has played out on beef finishing farms before and since the COVID-19 crisis,” he said.
Prior to COVID-19, beef prices were extremely poor due mainly to Brexit uncertainty and exchange rate problems and farmers selling cattle were facing losses in the order of €100 per head, the IFA said, adding that beef prices have since fallen from a base of €3.65/kg to €3.40/kg and inflicted another €100 per head in price losses.
Golden said Minister Creed must add to the unspent BEAM funding and immediately put in place a direct payment scheme to help make up for the price losses on finishing farms this spring.
Last week, Minister Creed told the Irish Farmers Journal that the €20m underspend in the BEAM scheme was "actually reallocated in Budget 2020 for the BEEP 2".
Read more
Coronavirus recovery fund will not be at the expense of CAP – Creed
Taoiseach calls for EU support for farmers through CAP
Taoiseach intends to share plan to ease COVID-19 measures on Friday
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