Beef price cuts costing farmers €1m/week
Farmers have been counting the costs of the beef price cuts with the move costing them more than €1m this week.
Beef processors slashed prices by between €20/hd and €50/hd in a move which prompted an angry response from the farm organisations.
With factory buyers indicating that slaughter plants secured sufficient cattle supplies at the lower quotes - despite many farmers refusing to sell - it is estimated that the price drop cost livestock farmers more than €200,000 a day last week.
The factories pulled heifer quotes by 10c/kg or €35-40/hd, steer prices dropped 5c/kg or around €15-20/hd, bull quotes fell by 10c/kg or more than €30/hd, and cow quotes were cut 20c/kg or over €50/hd.
Given the current profile of the weekly beef kill, the impact of the price reductions was significant - even when taking the price reductions at the lower end of the range.
With the weekly steer kill averaging around 12,000hd, the €15/hd cut in price equates to a loss of €180,000 for farmers.
Similarly, the €35/hd drop in heifer prices represents an overall loss of around €300,000 when taken across the average weekly kill of 8,700hd.
The €30/hd bull price cut cost farmers €135,000 for the average kill of 4,500 animals.