A number of Irish livestock exporters are in the hunt for the latest contract to supply live cattle to Turkey.

This includes shipping family company Purcell Brothers. The company is in advanced negotiations for a contract for over 40,000 head of cattle to be supplied by autumn 2017. However, that contract is not signed, the Irish Farmers Journal understands.

The Irish Farmers Journal understands that Co Meath-based Viastar is also negotiating for this business. It exported close to 20,000 head to Turkey last autumn.

The key issue for farmers will be what price is agreed in any contract for Irish cattle signed with the Turkish Dairy and Meat Board. A higher contract price would allow shippers to pay farmers more for cattle. The price agreed for last autumn’s cattle was over €4/kg liveweight delivered.

A shipper must feed stock for the 21-day quarantine period, carry out vaccinations and veterinary tests, and charter a livestock vessel. That cost alone would be from €500,000 per trip upwards depending on the size of the ship.

People involved in cattle exporting suggest that the total of these costs would be around €1.20/kg liveweight. They suggest that any price lower than that of last autumn might not be viable for weanling, feeder cattle at current mart prices.

In addition, the successful bidder has to pay, up front, a multimillion performance bond as a guarantee that it will fulfil the contract. This bond – usually in the region of 4% – is refunded on completion of the contract.