The Irish Cattle and Sheep Farmers Association (ICSA) has declared that winter beef finishing is “finished”, due to factories cutting prices weekly.
ICSA beef chair Edmund Graham said that at current beef prices and feed costs, farmers looking to finish cattle out of the shed this winter are “utterly insane” and warned that that they “can forget about it”.
ICSA beef chair Edmund Graham. \ Dave Ruffles
“In fact, the economics of any winter finishing system do not stack up, as prices have fallen nearly €1/kg since June. This week, factories are quoting as low as €4.55/kg, which is totally unsustainable considering current escalating costs,” he said.
Feed costs
The ICSA representative made his comments in response to beef price cuts and increased feed costs.
“[The] ICSA has engaged with Teagasc about feeding costs. Some of our producers are calculating daily feed costs (including all fixed and variable costs) of up to €9/day. Teagasc have a sum of €6/day, but that includes a period of low-cost grazing in the autumn.
“Typically, we might aspire to a carcase weight gain of 0.6kg/day. At a price of €4.55/kg plus quality assurance bonus of 20c/kg, a typical R3 steer will fetch €4.75/kg. This works out at €2.85/day, which makes intense winter finishing utterly insane.”
Figures not stacking up
Graham said that the ICSA is “strongly urging” winter finishers to “do their sums now” and suggested that they inform their factories that they are not feeding cattle this winter to finish in springtime because the “figures do not stack up”.
The economics of any winter finishing system do not stack up, says ICSA.
“It will make a lot more sense to let cattle thrive more slowly and finish them off grass next summer,” he said.
‘Beyond belief’
The farmer said that it is “beyond belief that beef is still being off-loaded in supermarkets at the exact same prices that consumers were paying three years ago”.
“This is not economically sustainable. Farmers are being lectured continuously about what consumers want, but supermarkets cannot expect that this can be delivered at a loss by farmers.
"If consumers want more sustainable beef, retailers need to explain to consumers this comes at a cost,” he said.
Read more
Beef Trends: farmer frustration mounting
The Irish Cattle and Sheep Farmers Association (ICSA) has declared that winter beef finishing is “finished”, due to factories cutting prices weekly.
ICSA beef chair Edmund Graham said that at current beef prices and feed costs, farmers looking to finish cattle out of the shed this winter are “utterly insane” and warned that that they “can forget about it”.
ICSA beef chair Edmund Graham. \ Dave Ruffles
“In fact, the economics of any winter finishing system do not stack up, as prices have fallen nearly €1/kg since June. This week, factories are quoting as low as €4.55/kg, which is totally unsustainable considering current escalating costs,” he said.
Feed costs
The ICSA representative made his comments in response to beef price cuts and increased feed costs.
“[The] ICSA has engaged with Teagasc about feeding costs. Some of our producers are calculating daily feed costs (including all fixed and variable costs) of up to €9/day. Teagasc have a sum of €6/day, but that includes a period of low-cost grazing in the autumn.
“Typically, we might aspire to a carcase weight gain of 0.6kg/day. At a price of €4.55/kg plus quality assurance bonus of 20c/kg, a typical R3 steer will fetch €4.75/kg. This works out at €2.85/day, which makes intense winter finishing utterly insane.”
Figures not stacking up
Graham said that the ICSA is “strongly urging” winter finishers to “do their sums now” and suggested that they inform their factories that they are not feeding cattle this winter to finish in springtime because the “figures do not stack up”.
The economics of any winter finishing system do not stack up, says ICSA.
“It will make a lot more sense to let cattle thrive more slowly and finish them off grass next summer,” he said.
‘Beyond belief’
The farmer said that it is “beyond belief that beef is still being off-loaded in supermarkets at the exact same prices that consumers were paying three years ago”.
“This is not economically sustainable. Farmers are being lectured continuously about what consumers want, but supermarkets cannot expect that this can be delivered at a loss by farmers.
"If consumers want more sustainable beef, retailers need to explain to consumers this comes at a cost,” he said.
Read more
Beef Trends: farmer frustration mounting
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