Suckler and beef farms are looking at a substantial drop in income this year, which will have major implications for the sector if urgent supports are not provided. Brendan Golden, the IFA Livestock Chairman, says that the updated Outlook for 2022 published by Teagasc this week highlights the challenges facing the suckler and cattle sector.
The report showed that costs will outstrip any price increase. Farmers are already seeing this on the ground as beef prices fail to keep pace with input inflation.
“Production costs on suckler and finishing farms are projected to increase by 24% and 30% respectively. The low income suckler and beef sector does not have the capacity to absorb this level of disruption. The Minister for Agriculture must come forward with immediate direct supports and commitments for the sector to off-set these production cost increases and uncertainties to allow suckler and beef farmers plan with confidence for this year and into the future,” Golden urged.
It is thought that, BEAM (Beef Exceptional Aid Measure) monies clawed back from suckler and cattle farmers must be utilised as part of the direct financial support package for suckler and beef farmers. And the Brexit Adjustment Reserve and the Crisis Fund must be utilised and targeted directly to suckler and beef farmers who are the most exposed to the impacts of Brexit.
The Livestock Chairman also said that meat factories must return the full value of the current buoyant beef trade in prices, there is no justification for our beef price stagnation when prices in our key export markets continue to surge ahead. Meat factories must also come forward with commitments to cattle finishers on price for this autumn and into 2023.
“It is critical suckler and beef farmers are given a clear signal of short, medium and longer-term support to continue to produce beef at the highest animal welfare and environmental standards,” he concluded.