Beef Price Cut – ICMSA Urge Farmers To ‘Box Clever’ And Disregard Factories “Mind Games”

ICMSA Livestock Committee Chairperson, Michael O Connell has rubbished the decision by factories to cut beef price by 10c/kg earlier this week. Describing the price cut as “downright sneaky”, Mr O’Connell said that factory procurement staff had casually introduced new base prices once they have adequate supplies of cattle bought at last week’s price.  Observing that Spring 2026 had been ‘one to forget’ for beef finishers, the ICMSA Livestock Chairperson said this latest price cut was “rubbing salt into the wound” of the farmers who had seen €300 – €400 per head wiped off the price of their cattle – excluding feeding costs.

“Similar to last year, at the first hint of uncertainty in the trade, factories pull prices by 10c/kg.   Why does this ‘uncertainty’ have to be passed back to the farmer-producers in the form of a price cut?  And what uncertainty are they talking about?  The only certainty we know of is the fact that beef is scarce globally and food security was never as important. Bluntly, we don’t believe this bluffing about ‘uncertainty’ and we just think that it’s more proof – if that was even needed – that factories can never be considered an ‘honest broker’ and will always act in a way that damages the people supplying them”, said Mr. O’Connell.

The ICMSA beef expert said that we did see record beef prices at the beginning of 2025, but he said that relative to increase in costs of production and value of store cattle, he added that the ‘Good’ 2025 was needed to buffer the preceding below-average years.  

“Factories were never going to let this become an annual occurrence and really ‘turned the screw’ on farmers this year. Farmers’ biggest fear now is that very expensive store cattle will be processed between now and the end of the summer at a significant loss.   As usual, factories have decided on a tactic of citing some unproveable factor and then introducing a farcical price cut .  The narrative that markets are difficult – specifically, the UK market – is deflecting the fact that our beef processors have depended on the UK as first stop for our product for decades.  Now, when there is pressure applied from inferior produce from outside of the EU – most likely imported by the very same processors – we see this self-inflicted ‘challenge’ cited as the reason to ‘clean out’ the farmers.  The commentary regarding market difficulties is nothing new but shouldn’t processors have seen this coming since Brexit and source markets outside of the EU? Or, better still or better, inside the EU to replace the once lucrative UK market?”, asked Mr. O’Connell.

Observing that yet again, the Department has been ‘asleep at the wheel’, Mr. O’Connell said that the much-hyped sales trips to South Korea and China delivered only short-term benefits: “Once there is a whiff of a notifiable disease issue, trade for ‘off-cuts’ is indefinitely stopped.”

“Factories absolutely have a purse of profits in reserve from the last 20 years of blatant robbery from which they could easily pay farmers even allowing for last year’s exceptional prices.  We are well over €1/kg down on base price today from where beef peaked in 2025.   How are farmers supposed to survive after restocking in 2025 at prices €1/kg more than they are being offered now?  Whatever benefit accrued to farmers last year is being lost this year, so we are back to ‘Square One’ and the factories know it well”, he said.

Mr. O’Connell said that the devastating effect of the price cuts was compounding one of the most challenging springs in terms of weather, falling prices and surging costs that farmers could remember.  

“Factories can change the rules regarding pricing in an instant without any communication, again, how is a farmer to base a business model around this?  We are aware of farmers looking at losing €500 per head on these cattle compared to last year.  Is it any wonder that we can’t get young people to go into farming when they are at the mercy of this kind of carry-on”, he said.

“We are well aware of these Factory ‘mind games’ where they reduce kill plans, introduce short weeks, citing uncertainty in demand. These are all designed to create a sense of panic among farmers to try offload cattle before a further price drop. Actually, it’s their preferred method of ‘flushing out’ the last of the shed cattle.  Factories will naturally kill their own feedlot cattle at the expense of farmers cattle. Most factories are reduced to three to four days per week suggesting that they are trying to stretch out a limited availability of slaughter-fit cattle, and we can see with the reduction in cow and young bull kill.  I would urge farmers to ‘box clever’ for as long as they can and sensibly consider their options before giving in to factories.  We don’t believe the cattle are there; the figures have showed reductions of available cattle for the past three years but going forward. Don’t be panicked and look at all options, including the marts”, he concluded.

Ends        12 May 2026

Michael O’Connell, 086-8551015

Chairperson, ICMSA Livestock Committee

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office