Factories need to take a longer-term view on beef prices and stop the price cuts of recent weeks, Irish Farmers' Association (IFA) livestock chair Declan Hanrahan has said.

Supplies of finished cattle are extremely tight, Hanrahan said, with numbers, based on Bord Bia projections, expected to reduce by almost 100,000 between now and year end.

Beef production is also down in Ireland's key markets - the UK and the EU. This supply-demand balance must deliver for Irish and EU beef producers, he said.

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“Declining beef production across the UK and the EU is a result of flawed policy decisions on CAP and damaging trade deals that have eroded incomes on suckler and beef farms, [and] also severely undermined confidence in the sector.

"This will have very serious longer-term consequences for the sector and, critically, generational renewal within it,” Hanrahan said.

“There must be an urgent reset from factories, supermarkets and politicians in how they view and support beef production.

"Suckler and beef farmers cannot and will not continue to operate at a financial loss," he said.

National farm survey

The preliminary results launched by Teagasc for the 2024 national farm survey highlight the extent of the income challenges on suckler and beef farms, Hanrahan said.

The average family farm incomes of €13,547 and €18,101 respectively are the lowest of all sectors.

Direct payments contribute 132% of this income on suckler farms in 2024 and 87% on beef farms.

Hanrahan said the simplistic narrative from factories and supermarkets of higher prices impacting on consumer purchases rings hollow with beef farmers.

He said the supermarkets are quick to use the production standards on our farms to promote beef and continually look to raise the bar, but are found badly wanting when it comes to valuing this product at farmgate level and marketing this value for the benefit of farmers.

"Factories can and must do more as the interface with the large multinational supermarkets in returning strong prices to farmers.

"Simply rolling over and cutting prices to farmers is not good enough," he said.

If factories do not stand stronger in the marketplace, they will be the first to lose out.

Farmers, he added, will not continue to produce cattle at the current levels of investment required when there is so much volatility.

"The UK is doing bilateral deals that gives more access to their markets. The EU is in the process of trying to conclude the Mercosur trade deal, with indications that discussions with Australia could be recommencing.

"Any additional access for cheap beef would only serve to undermine our prices; it is vital our Government stand firm in rejecting any deals that provides more access to the EU market," he said.

"Factories can and must stand firm in the marketplace. Beef supplies are tight, demand is strong and they must maximise the opportunity that exists to return higher beef prices to farmers supported by Bord Bia highlighting the standards our beef is produced to,” Hanrahan said.