ICMSA saying 93,000 less cattle of 12-months plus will help beef prices in ‘back-end’
Speaking following the latest meeting of the Beef Taskforce, the President of ICMSA, Pat McCormack, said that on the basis of the presentation by an Bord Bia on the beef market outlook, the cattle number situation in the second half of 2020 is certainly grounds for optimism for beef producers. According to Mr. McCormack, Bord Bia confirmed that as of 1 May 2020, the number of male cattle over 12 months of age is 68,000 less than 1 May 2019 and in the case of beef female cattle, 25,000 less. In total, this is 93,000 less cattle over 12 months of age for the rest of this year.
“Cattle supplies should be tighter than 2019 providing a level of advantage for the primary producer. In addition, while beef demand has taken a hit due to Covid-19, with restrictions being relaxed across the EU, there is certainly optimism that demand levels will recover over the rest of the year providing a reasonable market outlook for beef that has to be translated into better prices for farmers”, said Mr. McCormack.
“In addition, there appears to be opportunities for live exports over the remainder of the year and resources will have to be allocated to support this hugely important element of competition. In the short term, it is quite clear that beef prices have moved forward in our main UK market, and our prices must follow suit immediately”, he said.
In relation to the PGI proposal, Mr. McCormack said that it was confirmed at last Thursday’s Beef Taskforce that no additional requirements will be placed on farmers in relation to this application; no new rules or regulations.
“The Irish beef sector has the opportunity to get PGI status on over 70 percent of the beef we produce based on the fact that it is a grass-based unique product. ICMSA’s opinion is that, as a sector, we would be very foolish as a sector not to grasp this opportunity given that it also provides a greater level of protection under trade agreements. We are going to have to factor in a potential Mercusor agreement down the line and we have to look at every opportunity to protect our primary beef producers. In addition, while nobody can give any guarantees, an increased market price should flow back from some markets and – given where prices are now – we really have to look at every way of improving farmer beef prices”, said Mr McCormack.
Ends 26 June 2020
Pat McCormack, 087-7608958
Cathal MacCarthy, 087-6168758
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