ICMSA Livestock chairperson, Michael O’Connell, has completely contradicted what he said was “a fairy story” being put about by the factories to the effect that the market is experiencing downward price pressure.
Mr O’Connell said there was no basis for these reports considering the opportunities across UK and EU for Irish beef currently. He said that this impending “downward pressure” spin is the follow-up to the factories previous attempt to talk down price when they were warning of an imminent ‘correction’. Both rumours were utterly baseless and were as transparent as they were without any real credibility.
“Over the past month, we have seen the price of the Irish O3 and R3 steer increase by 20c/kg respectively as well as a notable shift to bigger kill plans to correspond with the increased appetite for prime cattle that has emerged over the past five to six weeks. There’s an obvious direct line from the ban on imported beef into the EU to the significantly increased throughput and price. ICMSA has already called for an ‘all industry’ approach to capitalise on the opportunities across the EU and UK and that’s already to be seen in the UK where they are quite anxious for Irish beef between now and Christmas with volumes anticipated to increase further.
“UK imports for Q4 of 2026 are anticipated to grow by 3%, which is even more encouraging if you consider the micro-management that the factories have tried to exercise on Irish kill volumes over the last six months. We know that instructions have gone out to agents and procurement staff to focus on the prime cattle throughput – and that’s a surefire indication of the strong demand for Irish beef.
“Factories wouldn’t increase kill plans unless they see benefit in so doing, and that’s why they should save their breath and what’s left of their credibility and forget about these fairy stories about ‘downward pressures and ‘market corrections,” said Mr O’Connell.
As further evidence, Mr O’Connell cited the activity of a number of factories ‘ringside’ where he observed they are paying significantly more than they would be paying farmers to send the cattle in.
“We are back to the age-old question of the Irish beef sector: how can processors give up to 20/30c/kg more for cattle ringside than they would pay farmers to kill them? We have the slightly ludicrous situation where farmers sending cattle into factories directly are being asked to pay for the higher prices for the factories’ own cattle and cattle coming from CFUs – whether factory owned or factory controlled.”
The ICMSA chairperson said the factories’ antics last Spring had left a very sour taste in the mouth of farmers and finishers alike and – even at today’s prices – cattle bought last autumn and spring are not covering their costs.
“For all their huffing and puffing trickiness, it’s actually all unnecessary,” said Mr O’Connell, “we are fed up of calling it out. Processors need to stop trying the tricks and instead build relationships with farmers. For all their dealing and double-dealing, the factories have to realise that no-one – absolutely no-one – can be expected to fill sheds again paying current prices on the basis of a factory whim or a ‘nudge and a wink’ from the factory agent.
“There is too much money involved now and all the variables outside the farmer’s control – feed, fertiliser, and energy costs – are all rising. We need commitment, a guarantee, for these farmers. We cannot see a repeat of last Spring and the people who ‘broke’ it, are going to have to ‘fix’ it; it’s up to the factories to start accepting reality and pay what the current markets are dictating,” he said.
“And I’d advise them not to waste time thinking about this; if they don’t get out there and offer farmers the kind of prices that will convince them to finish cattle over this winter 2026/2027, there won’t be any cattle next spring. Once bitten, twice shy”, concluded the ICMSA Livestock chairperson.
