I.C.S.A. BEEF CHAIRMAN CALLS FOR FOCUS ON CONTINENTAL MARKETS

ICSA beef chairman Sean 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, 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 over reliance 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 beef vice 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.

AGRICULTURE IS KEY PLAYER IN IRELANDS’ ECONOMIC RECOVERY – MACRA

Macra na Feirme National president Catherine Buckley welcomed the eventual decision by the Government to commence addressing the poor state of the public finances.

The Macra president said the Government now needs to give clarity on the future direction on how to restore our economic growth and stabilize our public finances over the next 5 years.

It is important to remember that agriculture has already shouldered a significant array of cuts and young farmers were specifically hit hard since the last budget as well as currently suffering from difficult global market trading conditions for commodities.

Ms Buckley said cuts on their own won’t provide necessary stimulus to restore economic growth and with this in mind Macra has outlined a number of measures that are required to support farmers and new entrants to farming.

‘Measures that support new entrants to agriculture will make a measurable contribution to the stabilization of the economy as the more young farmer entrepreneurs who are facilitated to be productive, the lower the burden on the state to fund unemployment obligations’.

Ms Buckley said measures supporting entrepreneurship must make specific provision for agricultural entrepreneurs. A suspension or a reduction in schemes and services ends up disproportionately effecting new entrants to farming who are trying to set up in the industry.

Farmers must also be facilitated to access research and development and feasibility grants and supports in order to make technological and logistical improvements. Access to capital for development and growth of farm businesses is also a major issue for young farmers.

Ms Buckley insists the Government must remember that agriculture is one of the few sectors which has the potential to immediately deliver growth in employment and financial returns.

FERTILISER PRICE CARTEL BREAKING - I.F.A.

IFA inputs project team leader James Kane has said, “Attempts by the fertiliser trade and some of the larger merchants to maintain artificially high prices in the face of falling international fertiliser prices are floundering as more and more farmers engage in collective purchasing and are prepared to shop around”.

Mr Kane said, “There is no justification this season for high fertiliser prices as international wholesale prices have fallen to pre 2008 levels. It is clear that some of the trade both at distribution and retail level has been attempting to hold onto increased margins as wholesale prices fall. Quotes for bagged granular urea delivered on farm are varying from €340 to €440 tonne”.

“A price differential of up to €100 between Munster/South Leinster and Ulster/North Leinster is inexplicable and points to excessive profiteering at farmers’ expense. On the prilled urea front merchants are only discounting granulated by €10 to €15 per tonne whereas on the wholesale market prices are discounted by up to €40/t”.

“Despite resistance from the manufacturers, wholesale CAN prices have fallen dramatically in recent weeks, by up to €70/t. The switch by farmers from CAN to cheaper sources of nitrogen such as urea and ammonium nitrate has forced the manufacturers’ hands.

'The Irish trade is attempting to hold prices at last year’s level of €360 to €380/t but this should fall significantly in the coming weeks as new season supplies hit the ports. Earlier price indications were for €300/t collected in bulk ex port but this should drop as the season gets into swing”.

“Farmers should shop around before purchasing as significant savings can be made. Volume and cash discounts are being made for full loads and larger orders. Cash is king this season as the credit squeeze continues to bite. More farmers than ever are collectively purchasing their inputs and this is boosting their purchasing power significantly”, Mr Kane concluded.