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Following the calculation of a cost of production for beef including a labour cost, one farm organisation has said it is no longer acceptable to expect farmers to work for free.
In this week’s Irish Farmers Journal, Billy Glasheen, a beef finisher from Waterford who worked as a financial controller in several large companies, calculated his cost of production to be between €5 and €5.30 per kilo of beef.
In contrast to Teagasc figures, which calculate the cost of production to be between €4.kg and €4.54, Glasheen included an annual labour figure of €32,500 based on a 50-hour week at €12.50/hr.
Straight talking
Irish Cattle and Sheep Farmers’ Association (ICSA) beef chair Edmund Graham said Glasheen had brought reality to the discussion and demonstrated the need for straight talking about the sector’s future.
He said there was no other industry where the cost of production ignores basic labour costs.
A complete re-think is required
Graham said: “ICSA has been arguing for years now that it is unacceptable that a farmer is expected to work for free, especially in an economy where there are many job opportunities and where farmers are facing a huge challenge to get help either full-time or part-time."
"We have to get the message out to all stakeholders, including processors, retailers and consumers, that the real cost of production is above €5/kg and that it is utterly unsustainable for farmers to sell beef on today’s market at €3.65/kg.”
Expansion
With expansion continuing in the dairy industry, Graham said the figures served as a wake-up call for the Government that it was not working for suckler or beef farmers.
“A complete re-think is required,” he concluded.
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