Farming News - Beef Finishers Must Get A Fairer Share Of Processor And Retailer Profits

Beef Finishers Must Get A Fairer Share Of Processor And Retailer Profits

ICSA Beef chair John Cleary has said processors and retailers must be willing to sacrifice a portion of their profits to ensure the survival of beef finishers. "As we head into the winter months, beef finishers are once again facing the daunting task of feeding cattle in sheds at enormous expense, with no guarantee of a return on their investment. This significant risk needs to be recognised by processors and retailers, who must now step up and do more for their suppliers. These farmers put their financial well-being on the line year after year to ensure a continuous supply of quality product, and they must be supported," he said.

 

"Every year, industry experts carefully analyse production costs and set a farm gate price that winter finishers need to achieve to break even. This is the per kilo price below which this type of beef production becomes unsustainable. However, time and again, processors and retailers fail to recognise this reality, and these target prices do not materialise, leaving beef finishers in an increasingly precarious position."

"Despite the uncertainty and financial risks, many in the sector continue to purchase and finish cattle, hoping for better returns than in previous years. However, the coming season presents a particularly challenging landscape. Input costs remain stubbornly high, and current store prices will not yield a worthwhile margin against prevailing factory prices."

"For beef finishers to find any hope, processors and retailers must share a fairer portion of their substantial profits. The EU and UK markets are currently strong, with high demand for beef, and processors have lucrative weekly contracts to fulfil. However, without a fundamental shift in mindset and additional support, there will be fewer and fewer winter finishers remaining in business."