News – January 2009
30th January 2008 – ICSA Beef Chairman Calls for Focus on Continental Markets
ICSA beef chairman Seán Scully has called for an increased emphasis to be placed on high priced continental markets for beef exports. Speaking at an ICSA beef meeting in Carrick on Suir on Wednesday (28th January) Mr Scully said “we will never get a better opportunity to get Irish beef onto shelves on the continent given the expected shortages in beef production in key countries. Bord Bia has an obligation to beef farmers to look at developing these markets.”
Mr Scully demonstrated how this valuable market for Irish beef must be expanded to stem the overreliance on the UK market given the volatility of sterling.
The problems with prices for weanlings and costs associated with suckler farming were also identified as a key issue for the entire industry and the government, and not just suckler farmers. ICSA vice beef chairman Martin Coughlan said “we can’t allow suckler farming to go to the wall as it forms the key base of quality beef production in this country. It is time for a plan from the Department of Agriculture and the government as to how this will be sustained going forward.”
Presentations from Dr Michael Drennan, Teagasc, Eamonn Moulds, Slaney Foods and Tom Rafter, ACC Bank were well received by the large attendance. Dr Drennan presented research into the relationship between beef carcass grades and meat yield and there was significant interest in his study. Eamonn Moulds of Slaney Foods outlined that exports to the continent formed a large part of their business.
ICSA is the first farm organisation to campaign for graded prices to ensure significant bonuses for higher grades of cattle. A sample pricing grid using the O3 grade as the base price with bonuses for R, R+, U and U+ grades was also discussed at the meeting.
The meeting was kindly sponsored by ACC bank.
30th January 2009 – ICSA Warns Farmers to Tread Carefully With Farm Improvement Scheme
ICSA Munster vice president Edmund Phelan has warned farmers to tread carefully before starting work that has been pre-approved by the Department of Agriculture under the Farm Improvement Scheme (FIS).
“Given the inability of the Minister for Agriculture to give cast iron guarantees on when the Farm Waste Management Scheme (FWMS) grant aid will be paid, I am advising farmers to consider carefully their financial position before they commence work under FIS,” he said.
Mr Phelan expressed annoyance at the Minister’s assertion that the final number of claims for grant aid under the FWMS has come as a surprise to the Department. “It is ridiculous for the Minister to create the impression that they were somehow surprised by the numbers. Worse still was the suggestion by the Minister that farm organisations are somehow responsible for the Department’s miscalculations. This simply doesn’t ring true when the Minister’s own officials accurately and repeatedly predicted over the past 12 months that the number of completed jobs would be around 32,000.”
“Farmers are haemorrhaging money paying interest on loans and are coming under serious pressure from banks. We need an urgent announcement from the Minister that these grants will be paid according to the timeline for payment as established under the farmers’ charter. Unless this is resolved as a matter of urgency we are looking at the bankruptcy of many in the agriculture sector due to the failure of the Minister to ensure that adequate funds were available,” he concluded.
26th January 2009 – Shortage of Finished Cattle Sees Rise in Beef Prices
ICSA beef chairman Seán Scully has said that beef prices are rising this week due to a reported shortage of finished cattle for beef processors. This has led to an increase in prices across the board with bullocks making 325c/kg (£1.16/lb), 319c/kg (£1.14/lb) and 308c/kg (£1.10/lb) respectively for U, R and O grades. Heifers are trading at 325c/kg (£1.16/lb), cows at 286c/kg (£1.02/lb) and bulls at 325c/kg (£1.16/lb).
Mr Scully said “while we have this rise, the beef industry still seems to be proceeding without a set plan, much like the Irish economy at present. While this week’s prices reflect a slight increase, this is still not good enough for the farmer who is loosing €150 – €200 per head finishing cattle over winter.”
“If this practice is to continue, there must be a more structured approach going forward so the situation doesn’t continue to be a gambling scenario for farmers. Part of this must include a focus on the high price European markets so as to reduce dependency on the British market.”
ICSA will hold a regional beef meeting in the Carraig Hotel, Carrick on Suir on Wednesday next 28th January at 8pm to discuss the future of beef farming in Ireland. Speakers will include Mr. Scully, Dr. Michael Drennan, Teagasc, Mr. Tom Rafter, ACC Bank and Mr. Eamonn Moulds, Slaney Foods.
23rd January 2009 – National Strategy Must Not Undermine Productive Sector
ICSA president Malcolm Thompson has today warned that any national strategy for economic recovery must not undermine the productive sectors of the economy. Mr Thompson said he was “increasingly alarmed at rumours of tax increases while there seems to be no willingness to deal with the lack of competitiveness”.
Speaking after the meeting of the social partners in Dublin today, Mr Thompson said that the farming sector had already been hit with excessive cuts in Budget 2009 despite the fact that the average farm income is only €17,000. He emphasised that the key priority must be to maintain exports and keep jobs.
“What is not widely appreciated is the huge cost burden to employers that already exists in the tax system. To give a single worker a take home wage of €12 p/h (net) results in a total tax and PRSI cost of €8,700 per annum to the employer. In these difficult times any further increases in tax will cause further job losses.”
“If we accept that jobs must be preserved at all costs, then logically we must make it as economical as possible to employ people. This means wage restraint and tax restraint, not the other way around.”
“Some farmers have employees, and all farmers have ongoing business with a wide range of small and medium employers such as agricultural contractors, builders, trades people and hauliers. Their costs are our costs. Their cost of employment impacts directly on the costs of running a farm.”
“Unless costs in farming can be reduced rapidly our ability to export food is going to be drastically undermined. There is nothing we can do about the exchange rate with sterling but the reality is that we still have a substantial dependence on exports into the UK. There is no way around the urgent need to become more competitive which means reducing costs” he concluded.
22nd January 2009 – Department Must Look Internally for Savings
ICSA President Malcolm Thompson said today that if further savings were needed in the agriculture sector then the Department must look internally for these savings. Farmers have already borne disproportionate cuts in Budget 09, with Area Based payments, Suckler Welfare, Early Retirement, Installation Aid, and Fallen Animal schemes being savagely slashed.
Speaking today Mr. Thompson said, “Farmers are already reeling from savage budget cuts far above those borne by the rest of society. If further savings are necessary then the Department must look internally for these savings. Example after example of wastage and duplication of work has been brought to our attention and it is high time that the Minister rationalised these wasteful areas.”
Mr Thompson referred particularly to the TB eradication scheme and the costs incurred by on farm inspections. “The Department of Agriculture must be run as an efficient business and failure to grasp the nettle is costing the country dearly” concluded Mr Thompson
19th January 2009 – Beef Prices Continue to Harden
ICSA beef chairman Seán Scully has said that there has been a strengthening of beef prices over the weekend with demand for cattle increasing as agents become more active.
“We have seen an improvement in price in smaller factories across the midlands with R grade bullocks getting 308c/kg (£1.10/lb), O grades making 302c/kg (£1.08/lb) and 314c/kg (£1.12/lb) for U grades. Prices for heifers have also improved with 323c/kg (£1.15/lb) being achieved in some factories. Cows are being quoted anywhere from 269c/kg to 302c/kg (£0.96/lb – £1.08/lb). Factories in the northwest are offering at least 11c/kg (£0.02/lb) more in most cases for R’s O’s and U’s.”
Mr Scully continued “we have also seen an improved market for bulls with U’s making 319c/kg (£1.14) and R’s making 314c/kg (£1.12). The Italian market is improving by the day and prices are getting better in the UK owing to the strengthening of sterling against the euro and what seems to be a shortage of beef there. Farmers should continue to drive hard bargains as the overall trend has to be upwards.”
15th January 2009 – Proposed Night-time Curfew for Learner Drivers Unworkable says ICSA
ICSA’s rural development chairman Gabriel Gilmartin said today that the Road Safety Authority’s (RSA) proposal to impose a night-time curfew on provisional licence holders will have a negative impact on rural communities. This is one of the measures currently being considered by the RSA as part of the proposed introduction of a Graduated Driving Licensing (GDL) system for learner drivers in Ireland.
Mr Gilmartin said “while we welcome any measures that aim to reduce the number of road deaths in this country, the introduction of a night time curfew for learner drivers will have implications for rural communities and especially farmers. Not all young drivers are boy racers and many rely heavily on the car as their only form of transport in rural areas where there is no alternative.”
“Learner drivers may work in employment that requires them to drive at night and measures such as this could put those jobs in jeopardy. Many young farmers on provisional licences may have to visit land that is a distance away from the home at night-time, especially during the lambing and calving seasons. This measure would be unworkable for them and many others in rural areas,” said Mr Gilmartin.
12th January 2009 – Beef Prices Improve Over Weekend
ICSA beef chairman Seán Scully has said that there has been a strengthening of beef prices over the weekend with prices of 308c/kg (£1.10/lb) and 314c/kg (£1.12/lb) being achieved for over and under aged bullocks in some factories.
Mr Scully said “some midland factories feel they have a right to pull prices on a Monday morning but there is resistance there and they won’t succeed in doing this. There are good prices being given for over and under aged bullocks in various parts of the country with reports of 319c/kg (£1.14/lb) for suitable heifers in some parts.”
“There were rumours that problems were emerging with the Italian trade but last week saw a return to some normality with regards to exports of beef to Italy.”
Mr Scully advised farmers going into the future not to soft sell their beef.
9th January 2009 – ICSA Calls on Farmers to Prioritise Safety in 2009
The Irish Cattle and Sheep Farmer’s Association (ICSA) has called on farmers to make health and safety a priority in the coming year. Following a report by the Health and Safety Authority which has shown that farm deaths have risen from 11 in 2007 to 21 in 2008, ICSA rural development chairman Gabriel Gilmartin said “the almost double increase in deaths as a result of farm accidents is a very worrying statistic.”
“I am calling for greater vigilance on farms and for farmers to treat their work as a high-risk activity. It is even more upsetting that some of those killed were young children.”
“Farming is very much a family business but farmers must not forget that some aspects can be very dangerous and there are many threats, especially to young children. Supervision is key, as well as ensuring that children are very aware of the dangers that animals and machinery can pose.”
“Any investment in safety measures will reap its own rewards and hopefully 2009 will see a dramatic reduction in the numbers of farm accidents,” he said.
8th January 2009 – ICSA Pays Tribute to Avril Doyle on the Announcement of her Forthcoming Retirement
ICSA general secretary Eddie Punch today wished Avril Doyle MEP every success in the future, following the announcement that she would not be contesting the forthcoming European parliament elections.
“Avril Doyle has been one of our most effective MEPs over a ten year period. In that time she has shown huge commitment to farming issues. She has been very strong on support for the sheep sector, including playing an active part on the increased ewe premium at the start of the new millennium which then translated into improving the Single Farm Payment of sheep farmers. She has also demonstrated a common sense approach to working against unworkable restrictions in veterinary medicines.”
“However, above all, I recall that Avril Doyle was one of the first politicians to support the ICSA position on full decoupling back in 2002, shortly after Commissioner Fischler announced his proposals. At that time, many politicians and other representatives and commentators were either hostile to full decoupling or preferred to sit on the fence. Avril Doyle however, saw the logic in the ICSA position and correctly judged that full decoupling was what most of her farming constituents wanted, and she acted accordingly. We at ICSA wish her well in the future.”
7th January 2009 – ICSA Suckler Chairman Advises Farmers to Reduce Suckler Numbers
ICSA suckler chairman Brendan McLaughlin has advised suckler farmers to examine their suckler cow numbers for the year ahead based on the low prices currently on offer for store cattle.
“The cost of rearing quality weanlings and store cattle must not be underestimated and the price in the ring is not reflecting this. A report issued by Teagasc in November has shown that suckler farmers are making the lowest margins and many are considering their future in the sector.”
“Only the top one third of suckler farms generated a profit in 2007 and the outlook is very bleak. Unless beef finishers are being paid a proper price for their animals, they cannot pass on a proper price to the suckler farmer. I am advising farmers to look at cutting back on their suckler cow numbers for the coming year and consider finishing weanlings themselves. There is little alternative left for those who wish to be viable,” he said.
5th January 2009 – DON’T SELL SOFT IS ICSA ADVICE TO BEEF FARMERS
ICSA beef chairman Seán Scully has advised farmers not to be soft sellers of beef. Mr Scully pointed out that beef prices in the UK have increased by Stg 10p/kg since Christmas and that there is no need for downward pressure on Irish beef prices. “Cattle continue to be scarce and farmers who have incurred very substantial costs in winter finishing simply cannot countenance low prices at this time of the year. While opening quotes are tending to be around the 302c/kg (£1.08p/lb) for Rs and 291 (£1.04/lb) for the 0s, deals are possible at 308c (£1.10) for Rs and 297c (£1.06) for 0s.
He also pointed out that the euro has weakened a little against sterling after reaching a high of 98p at the end of December. “This morning (Monday) has seen the euro ease back to 94p sterling. Hopefully, this is a sign that the euro has reached its highest point and any further interest rate cuts at the ECB should help this. This should start to regain some of the lost ground on competitiveness.”
In the long run, winter finishers will have to reassess their business given the failure of prices to match increased costs, but in the meantime, there is no logic to giving cattle away,” he concluded.
