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Farmer protests outside beef factories in the Republic of Ireland are into their second week and are causing significant disruption to the Irish cattle kill.
The protests are being led by the Beef Plan Movement, with farmers angry at current prices being paid for their stock, and demanding a price that covers costs and leaves a fair margin.
Even allowing for the bank holiday on Monday, estimates suggest that the number of Irish cattle slaughtered this week could be around half of the normal figures.
If the protests continue it will inevitably have an impact on the ability of Irish factories to meet customer orders, but for now factory buyers in NI maintain that they are not seeing any particular lift in demand to meet a shortfall.
However, with finished cattle numbers fairly tight, there are no waiting lists at NI factories and reports are coming in from farmers that penalties on out-of-spec cattle are being waived in some cases.
While most NI factories have held base quotes around the 324p/kg to 326p/kg mark more is available, and most farmers are working from a base in the mid 330s. Deals into the 340s are on offer for larger supplies, particularly of heifers. However, with strong supplies of finished cattle in Britain over the past few weeks, it has helped keep a lid on the overall trade. Prices paid in NI are generally in line with those on offer in mid- and southern England.
Frightened off
Elsewhere, the British Meat Processors Association (BMPA) has claimed that EU meat buyers are being frightened off by UK government warnings that it is serious about a no-deal exit from the EU.
According to the association, a “sense of panic” is now gripping the UK meat industry, as EU buyers are refusing to agree to long-term contracts. Ultimately, it points out that reduced orders filter back to farmers who will bear the brunt of this loss of trade.
“Insurers that cover these consignments and facilitate the movement of goods between countries are refusing to indemnify against losses related to a no-deal Brexit. Couple that with a volatile exchange rate, mooted border delays and complete uncertainty surrounding whether Brexit will even happen on 31 October, means the obvious solution for EU buyers is to source product from elsewhere,” states the BMPA.
In NI, the latest figures from DAERA show that 17% of sales by beef and sheep processors are to the EU. That trade is often for cuts of meat and fifth-quarter product that is not readily consumed in the UK.
There are also some wider concerns emerging around the ability of the food industry to mitigate against a no-deal exit. Ahead of the original exit date of 29 March, product was stockpiled in cold stores. However, the 31 October exit date comes much closer to Christmas, when cold stores are normally well filled to satisfy festive demand.
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