Poor weather conditions and cash-flow problems are forcing beef farmers to accept lower prices, according to the chairman of the Irish Cattle and Sheep Farmers Association.
Edmond Phelan said sudden beef price drops in July called into question the wisdom of food harvest 2020 expansion targets of 40 per cent.
“It is clear that price cuts in July were not due to oversupply,” Mr Phelan said. “It is likely that they were just taking advantage of farmers who were in a weak position.”
He claimed beef processors lacked a commitment to maintaining long-term sustainable margins for farmers.
“Instead of partnership, trust is again breaking down. Factories seem to look for every chance to capitalise on any weakness among sellers.”
Accusing banks of “not walking the walk” in terms of credit, he said, “a farmer who has cattle to sell should not have to sell under pressure if it is more advantageous to wait or to feed for a few weeks.
“Soft selling is always something that we try to encourage farmers away from,” Mr Phelan added, “ but it’s not always easy when the weather is so atrocious.”