ICMSA say massive discrepancy between factories’ “fairy story” narrative on beef price and market reality

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” is the follow-up ‘spin’ 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 upto 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.  It is plain to see when you look at average prices reported by DAFM on a weekly basis. Factories quoted and paid base prices of between €6.60-6.70c/kg and even up to €6.80c/kg for steers for the last fortnight. But if you look at average prices paid ringside for R3 and P3 steers of €7.04c/kg and €6.69c/kg respectively, they are a long way ahead of what a farmer is being paid on average for his or her cattle. Even when you take into account the deductions from the grid for P+3 and P=3 steers of 30c and 36c respectively, it does not reflect the base prices stated previous. With CFU herds accounting for upto 25% of the throughput in factories, it is obvious to see that factory-owned and CFU cattle are being priced, effectively, at the behest of farmers.  The moral of the story is that farmers are subsidising what is being paid for their own cattle and CFU cattle”, he said

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

Ends    21 October 2026

Michael O’Connell
Chairperson, ICMSA Livestock Committee

Or

Cathal MacCarthy
ICMSA Press Office