The Ulster Farmers’ Union (UFU) has said the latest drop in factory beef prices shows that Northern Ireland’s beef farmers are being left to “shoulder the pressure while others in the supply chain remain protected”.
According to figures acquired by the UFU on April 27, factory quotes slipped by around 10p/kg that week, continuing a downward trend from 630-640p/kg earlier this year to closer to 600-610p/kg in recent weeks.
UFU beef and lamb chair Brendan Kelly said: “A further drop in beef prices right in the middle of NI Beef Week sends the wrong message entirely.
“This should be a week where we are championing our product, yet farmers are instead facing another blow to their income.
“Farmers are, once again, the ones expected to absorb the shock.
“Everyone else along the chain appears able to protect their margins, while primary producers are left exposed. It is becoming all too clear that farmers are the easy target when pressure comes on the system and that simply cannot continue,” Kelly said.
In a statement, the UFU said beef finishers are being “squeezed from all sides”, with rising input costs compounding the impact of falling prices.
It added: “Meal costs remain high, fuel costs are volatile, and wider global instability is adding further uncertainty.
“Yet, at the very point where farmers sell their product, the price is going backwards.”
Market pressures
The union also pointed to a growing disconnect between different parts of the market.
The statement said: “Farmers are paying strong money for store cattle in marts and seeing firm retail prices on shelves, yet factory returns are falling.
“That is not just unsustainable, it is fundamentally unfair. No business can survive long-term when it is taking less for more.”
Imports and trade policy are adding further pressure, the UFU warned.
It noted that trade deals agreed at a UK level are increasing the volume of imported beef coming into the market, giving processors and retailers more options and “weakening” local prices.
“Northern Ireland farmers are being asked to compete with product that is often produced to different standards, without the same level of support.
“That is not a level playing field,” the statement said.
Kelly added that there is also “growing frustration” among farmers at the lack of clarity from processors.
He said: “Prices are moving week to week with little explanation, and that is fuelling real anger on the ground.
“Farmers are being asked to plan and invest in their businesses without any clear signals about where the market is heading.”
‘Extremely tight margins’
The UFU warned that many beef producers are now operating “on extremely tight margins, with some already making a loss”.
In light of the current challenges, the UFU is advising farmers to carefully consider all available marketing options.
It encouraged farmers to explore all sale avenues, including local livestock marts, to try and secure the best possible returns.
Kelly said: “Farmers cannot continue to produce high-quality, sustainable beef while consistently taking the financial hit.
“If this continues, it will lead to reduced production and long-term damage to our local industry.
“That is in nobody’s interest from farm to fork.”