The reversing of price cuts, increased reluctance from farmers to reduce quotes and a slight rise in average prices paid weekly indicate that factories are anxious for cattle, chair of the Irish Creamery and Milk Suppliers Association (ICMSA) livestock committee Michael O’Connell has said.

As the pressure has come off farmers to move cattle, the ICMSA chair predicted an increase in beef price as factories actively hunt for cattle.

“Grass growth has resumed and a lot of the traditional breeds of cattle have been moved on before 30 months. It’s inevitable that cattle prices are going up and we need that sooner rather than later,” he said.

ADVERTISEMENT

Noting that it was in their own interests to "sort out" supply and give farmers encouragement to buy cattle for finishing, O’Connell cited the opportunity provided by the Brazilian ban.

Opportunity

“Irish processors have opportunities to exploit EU markets which the Brazilian had in their sights. Declining herds all over Europe puts us in a great position to look to the markets the Brazilians had hoped to fill,” O’Connell stated.

“But that’s going to mean that farmers have the confidence to buy now for slaughter next spring and that, in turn, is going mean that the factories give some indication of the prices those farmers can expect and then hold to those commitments.

“There’s a chance for all of us involved in producing beef to make a margin if the factories can curb their usual instinct to take advantage of their suppliers and wipe them out when those farmers are most exposed.”

Winter and spring finishers

Against the background of what he called the “farmer margin massacre” that had been inflicted by factories in the latter half of spring 2026, he said that processors must outline proposals for winter and spring finishers.

He said that the presence of factory agents ringside was driving the trade for those forward cattle to feed and slaughter from January onwards.

“We just cannot have a repeat of the late spring 2026 scenario that saw beef price drops of on average 8c/kg to 10c/kg per week.”

O’Connell pointed to a study the ICMSA carried out into the difference in prices for the second quarter of 2025 versus 2026.

“A startling €109m was lost by farmers on prime steers and heifers in this period in 2026 compared [with] the previous year based on an average of 97c/kg of a loss over this 13-week period. We must also note that farmers were waiting three to four weeks to get cattle slaughtered, which would have further added to outstanding feed bills.”

Not sustainable

He said no farmer can take this hit, as it is not sustainable, and added that it had a knock-on negative effect on the wider rural economy.

He added that farmers can’t be playing Russian roulette – feeding cattle with no direction of travel on final price – and said feeding cattle has become increasingly specialised, with one dent in efficiency or market value possibly detrimental to the viability of the farm.

“We must see a direction of travel; we must see a pricing model indicative of what markets can return over the next six or eight months. Now that we see the ban on Brazilian imports sink in, we see processors increasing their kill plans and increasing their presence ringside and across the countryside.

“The beef is wanted – we know it and so do they – it’s now time to put your cards on the table and ensure that there some degree of protection and return to the farmers who have been supplying beef to your factories all their working lives.

“And this isn’t a request; it’s a warning. Because no family farm can withstand another spring like the last,” said O’Connell.