Will factories miss opportunity of ban on Brazilian beef?
As we head into the Autumn-buying period for forward cattle, the Chairperson of ICMSA’s Livestock Committee has called for processors to outline proposals for winter and spring finishers against the background of what he called the “farmer margin massacre” that had been inflicted by the factories in the latter half of Spring 2026.
The Livestock Committee Chairperson, Michael O’Connell, said that the very first thing to note was that it was the presence of factory agents ringside that was driving the trade for those forward cattle to feed and slaughter from January onwards.
Whatever happened, he said, we just could not have a repeat of the late Spring 2026 scenario that saw beef price drops of on average 8c/Kg to 10c/Kg per week.
Mr O’Connell pointed to a study ICMSA carried out into the difference in prices for the second quarter of 2025 versus 2026.
“A startling €109 million was lost by farmers on prime steers and heifers in this period in 2026 compared to the previous year, based on an average of 97c/kg of a loss over these 13 weeks. We must also note that farmers were waiting three to four weeks to get cattle slaughtered which would have further added to outstanding feed bills.
“We know that there were ‘quirks’ in both years but we endeavoured to look at the figures on the best ‘like-for-like’ basis we could, and we’re satisfied that our figures are correct and valid. It’s to do no more than state the obvious, but no farmer can take this hit; it’s not sustainable,” he said.
The ICMSA Chairperson predicted an increase in beef prices as factories actively hunt for cattle.
“We have seen the price cuts reversed and increased reluctance from farmers to reduced quotes; there’s also a slight rise in average prices paid weekly.
“Taken together, it’s obvious that factories are anxious for the cattle. The pressure has come off farmers to move cattle. Grass growth has resumed and a lot of the traditional breeds of cattle have been moved on before 30 months. It’s inevitable that cattle prices are going up and we need that sooner rather than later”, he said.
Noting that it was in their own interests to ‘sort out’ supply and give farmers encouragement to buy cattle for finishing, Mr O’Connell cited the opportunity provided by the Brazilian ban.
“Irish processors have opportunities to exploit EU markets which the Brazilian had ‘in their sights. Declining herds all over Europe puts us in a great position to look to the markets the Brazilians had hoped to fill.
“But that’s going to mean that farmers have the confidence to buy now for slaughter next Spring and that, in turn, is going mean that the factories give some indication of the prices those farmers can expect and then hold to those commitments.
“There’s chance for all of us involved in producing beef to make a margin if the factories can curb their usual instinct take advantage of their suppliers and wipe them out when those farmers are most exposed,” concluded Mr O’Connell.
