Adam Woods spoke to Eamon Corley and Hugh Doyle this week – key figures in the establishment of the new Beef Plan Movement. They claim to be adding 1,500 farmers to the group every week, although whether these farmers are actively engaging or being added to circulation lists is not clear.
However, for longevity, it is important that proper data management and retention regulations are being adhered to at this early stage in the establishment of the group.
With ambition to grow membership to 40,000 farmers, each contributing financially to the group, there can be no weakness in governance or financial transparency.
Beyond membership targets, the group is setting ambitious goals over the next 12 months, ranging from being in a position to influence the national kill by 40% to significantly reducing the cost of farm inputs.
Combined, both men believe this can return farmers the equivalent of an additional 70c/kg or €250 per finished animal, even if we assume these figures are on a deadweight basis.
Longer term, their ambitions include setting up supply contracts with retailers, developing the equivalent of a Kerrygold brand for Irish beef and reinstating the live trade to Northern Ireland. No one can dispute that delivery on their short- and long-term goals, many of which we have highlighted repeatedly in the Irish Farmers Journal, would deliver hugely for the Irish beef industry. By helping to keep these issues centre stage, the group and those behind it have already done farmers a service.
However, there is a big difference between listing out the challenges facing the sector and implementing a strategy that actually addresses them. Ultimately, farmers will expect delivery – ambitions and targets will only hold farmers’ interest so long.
While many will see the ability to reduce the national kill by 40% by issuing a text message as aspirational, the reality is that it has never been tried before, so nobody knows
The group will live or die on the immediate delivery of the two short-term objectives. It will be critical that when the trigger is pulled on the first communication to tell farmers to stop selling cattle, that farmers do so and then see an impact in the market with the only measurement acceptable: a correlated increase in beef price.
New approach
While many will see the ability to reduce the national kill by 40% by issuing a text message as aspirational, the reality is that it has never been tried before, so nobody knows.
What we do know is that the existing strategy of protesting outside the factory gates has become less effective.
The group has set a high bar stating that it will be in a position to reduce the kill by 40%. It is a target that perhaps underestimates the strong relationship many large finishers have with their beef factories and perhaps the even deeper relationship that exists between beef factories, the factory agent and their farmer clients.
Of course, then there is the added challenge of convincing farmers who did hold stock that they were financially better off by doing so.
There was a good attendance at the first Beef Plan Movement meeting in Roscommon Mart.
The group is also likely to come under much closer scrutiny by farmers in relation to its stance on the future distribution of payments under the Common Agricultural Policy. The group’s stated position that CAP payments should be redistributed to smaller suckler farmers is unlikely to sit well with beef finishers who for historic reasons tend to have the higher payments. There is an obvious challenge in this regard if the group is looking to get the support of the specialist beef finishers. Without the support of this group, and that of commercial suckler farmers, who again to have higher payments due to the fact that they tend to bring their stock through to beef, the ability to influence the national kill will be severely limited.
From a broader perspective, we have highlighted before the risks of farmers being divided on the key issues affecting profitability, mainly through a plethora of representative organisations competing with one another to have their voice heard – a scenario that ultimately provides Government with political cover.
It is ironic that as we see farmers talking at different forums, the beef processors and retailers – which all farmer groups identify as the main challenge – are consolidating.
We should not allow the egos of individuals and/or farm organisations and groups to get in the way of working together to deliver on the key issues affecting farm profitability.
No matter how ambitious or innovative the idea, the reality is that there is a much better chance of delivery if farmers move together rather than going in opposite directions and competing with each other.
Potatoes: lessons must be learned from 2012
Sprouting and secondary growth on irrigated rooster tubers in Cork this year.
In 2017, potatoes were bought once every second in Irish retailers by over 1.67m households. Potatoes have firmly re-established themselves as the dominant carbohydrate among Irish shoppers, accounting for 84% of main carbohydrate meals.
This is no accident and was in part due to a successful three-year marketing campaign to increase consumption levels after their collapse in 2013. Growers will forever remember the disastrous potato harvest of 2012, which lead to a sharp increase in farmgate and retail prices. We learned in 2013 that consumers have a price limit, and once potato retail prices reach those limits, they quickly move to other carb sources.
This has been an unprecedented year for producers, something we’ve reported on since spring. With average marketable yields well back and the lowest planted cropping area on record, all signs are pointing towards a substantial reduction in potatoes coming to the market this year.
Farmgate prices are already at 2012 levels, which is needed to compensate for reduced yields and higher production costs. However, we haven’t seen the same surge in retail prices.
One lesson from 2012 is that retailers must ensure retail prices don’t reach that critical limit, while farmgate prices are held. This may mean a reduction in margins for retailers this year, but isn’t that a fair price to protect recovered consumption levels and our ever-dwindling grower base?
Brexit: clarity emerging at last
An Taoiseach Leo Varadkar and UK prime minister Theresa May.
After almost two and a half years of mainly internal debate in the UK, some clarity is emerging. From Thursday, the UK has 134 days left as an EU member, and only now has it presented a withdrawal agreement to cabinet. This will go to parliament next month, assuming the cabinet approves it. Getting it approved there is another major challenge for UK prime minister Theresa May.
For farmers either side of the Irish border and in Britain, the withdrawal agreement carries a strong clue on how the future trading relationship will work. The transition period until the end of 2020 will kick in after Brexit if the deal is approved by parliament. Conventional opinion is that negotiating a trade deal will take much longer than the time envisaged – five years is suggested as being more realistic.
While details of the proposed withdrawal agreement haven’t been released, indications that it will include the entire UK being part of a customs union should be welcomed. Not only would this allow trade on the island of Ireland to continue as before, but importantly it could also continue on an east-west basis. In addition, the customs union would afford a degree of protection to Irish and British farmers from being swamped by imports from South America, the US or indeed Australia and NZ.
There is still a way to go before farmers can relax on Brexit, but it is a measure of the stalemate that we can say this was one of the better weeks since the referendum.
Dairy Day: skills, talks and adding value to milk
Next Tuesday, we host our second Dairy Day in partnership with Bord Bia. This event comes at a time when the dairy industry is refocusing after a period of substantial growth. Our key industry topic is adding value to milk. That session will air at the same time as our practical demonstrations in the Calf Shed Talks and the Skills Hub. The timing of this debate could not be more appropriate. Farmers are questioning the value of the Kerrygold brand overseas with some looking at alternative ventures to see what further avenues are available to return better milk prices to Irish dairy farmers. Hope to see many of you next Tuesday in Punchestown.
Beet Ireland: bringing back sugar
Beet Ireland has been presenting its plan to tillage farmers. It’s up to every farmer to decide if the project is worth the €1,000 it costs to join the farmer co-op that will be a major shareholder in the business. However, it’s surely worth a few hours of any tillage farmer’s time to go to one of the meetings.
Adam Woods spoke to Eamon Corley and Hugh Doyle this week – key figures in the establishment of the new Beef Plan Movement. They claim to be adding 1,500 farmers to the group every week, although whether these farmers are actively engaging or being added to circulation lists is not clear.
However, for longevity, it is important that proper data management and retention regulations are being adhered to at this early stage in the establishment of the group.
With ambition to grow membership to 40,000 farmers, each contributing financially to the group, there can be no weakness in governance or financial transparency.
Beyond membership targets, the group is setting ambitious goals over the next 12 months, ranging from being in a position to influence the national kill by 40% to significantly reducing the cost of farm inputs.
Combined, both men believe this can return farmers the equivalent of an additional 70c/kg or €250 per finished animal, even if we assume these figures are on a deadweight basis.
Longer term, their ambitions include setting up supply contracts with retailers, developing the equivalent of a Kerrygold brand for Irish beef and reinstating the live trade to Northern Ireland. No one can dispute that delivery on their short- and long-term goals, many of which we have highlighted repeatedly in the Irish Farmers Journal, would deliver hugely for the Irish beef industry. By helping to keep these issues centre stage, the group and those behind it have already done farmers a service.
However, there is a big difference between listing out the challenges facing the sector and implementing a strategy that actually addresses them. Ultimately, farmers will expect delivery – ambitions and targets will only hold farmers’ interest so long.
While many will see the ability to reduce the national kill by 40% by issuing a text message as aspirational, the reality is that it has never been tried before, so nobody knows
The group will live or die on the immediate delivery of the two short-term objectives. It will be critical that when the trigger is pulled on the first communication to tell farmers to stop selling cattle, that farmers do so and then see an impact in the market with the only measurement acceptable: a correlated increase in beef price.
New approach
While many will see the ability to reduce the national kill by 40% by issuing a text message as aspirational, the reality is that it has never been tried before, so nobody knows.
What we do know is that the existing strategy of protesting outside the factory gates has become less effective.
The group has set a high bar stating that it will be in a position to reduce the kill by 40%. It is a target that perhaps underestimates the strong relationship many large finishers have with their beef factories and perhaps the even deeper relationship that exists between beef factories, the factory agent and their farmer clients.
Of course, then there is the added challenge of convincing farmers who did hold stock that they were financially better off by doing so.
There was a good attendance at the first Beef Plan Movement meeting in Roscommon Mart.
The group is also likely to come under much closer scrutiny by farmers in relation to its stance on the future distribution of payments under the Common Agricultural Policy. The group’s stated position that CAP payments should be redistributed to smaller suckler farmers is unlikely to sit well with beef finishers who for historic reasons tend to have the higher payments. There is an obvious challenge in this regard if the group is looking to get the support of the specialist beef finishers. Without the support of this group, and that of commercial suckler farmers, who again to have higher payments due to the fact that they tend to bring their stock through to beef, the ability to influence the national kill will be severely limited.
From a broader perspective, we have highlighted before the risks of farmers being divided on the key issues affecting profitability, mainly through a plethora of representative organisations competing with one another to have their voice heard – a scenario that ultimately provides Government with political cover.
It is ironic that as we see farmers talking at different forums, the beef processors and retailers – which all farmer groups identify as the main challenge – are consolidating.
We should not allow the egos of individuals and/or farm organisations and groups to get in the way of working together to deliver on the key issues affecting farm profitability.
No matter how ambitious or innovative the idea, the reality is that there is a much better chance of delivery if farmers move together rather than going in opposite directions and competing with each other.
Potatoes: lessons must be learned from 2012
Sprouting and secondary growth on irrigated rooster tubers in Cork this year.
In 2017, potatoes were bought once every second in Irish retailers by over 1.67m households. Potatoes have firmly re-established themselves as the dominant carbohydrate among Irish shoppers, accounting for 84% of main carbohydrate meals.
This is no accident and was in part due to a successful three-year marketing campaign to increase consumption levels after their collapse in 2013. Growers will forever remember the disastrous potato harvest of 2012, which lead to a sharp increase in farmgate and retail prices. We learned in 2013 that consumers have a price limit, and once potato retail prices reach those limits, they quickly move to other carb sources.
This has been an unprecedented year for producers, something we’ve reported on since spring. With average marketable yields well back and the lowest planted cropping area on record, all signs are pointing towards a substantial reduction in potatoes coming to the market this year.
Farmgate prices are already at 2012 levels, which is needed to compensate for reduced yields and higher production costs. However, we haven’t seen the same surge in retail prices.
One lesson from 2012 is that retailers must ensure retail prices don’t reach that critical limit, while farmgate prices are held. This may mean a reduction in margins for retailers this year, but isn’t that a fair price to protect recovered consumption levels and our ever-dwindling grower base?
Brexit: clarity emerging at last
An Taoiseach Leo Varadkar and UK prime minister Theresa May.
After almost two and a half years of mainly internal debate in the UK, some clarity is emerging. From Thursday, the UK has 134 days left as an EU member, and only now has it presented a withdrawal agreement to cabinet. This will go to parliament next month, assuming the cabinet approves it. Getting it approved there is another major challenge for UK prime minister Theresa May.
For farmers either side of the Irish border and in Britain, the withdrawal agreement carries a strong clue on how the future trading relationship will work. The transition period until the end of 2020 will kick in after Brexit if the deal is approved by parliament. Conventional opinion is that negotiating a trade deal will take much longer than the time envisaged – five years is suggested as being more realistic.
While details of the proposed withdrawal agreement haven’t been released, indications that it will include the entire UK being part of a customs union should be welcomed. Not only would this allow trade on the island of Ireland to continue as before, but importantly it could also continue on an east-west basis. In addition, the customs union would afford a degree of protection to Irish and British farmers from being swamped by imports from South America, the US or indeed Australia and NZ.
There is still a way to go before farmers can relax on Brexit, but it is a measure of the stalemate that we can say this was one of the better weeks since the referendum.
Dairy Day: skills, talks and adding value to milk
Next Tuesday, we host our second Dairy Day in partnership with Bord Bia. This event comes at a time when the dairy industry is refocusing after a period of substantial growth. Our key industry topic is adding value to milk. That session will air at the same time as our practical demonstrations in the Calf Shed Talks and the Skills Hub. The timing of this debate could not be more appropriate. Farmers are questioning the value of the Kerrygold brand overseas with some looking at alternative ventures to see what further avenues are available to return better milk prices to Irish dairy farmers. Hope to see many of you next Tuesday in Punchestown.
Beet Ireland: bringing back sugar
Beet Ireland has been presenting its plan to tillage farmers. It’s up to every farmer to decide if the project is worth the €1,000 it costs to join the farmer co-op that will be a major shareholder in the business. However, it’s surely worth a few hours of any tillage farmer’s time to go to one of the meetings.
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