Beef and sheep farmers struggling

Declining factory beef prices mean farmers who invested in expensive store cattle are now under financial pressure to make returns in a falling market.

For sheep farmers, a lack of action by the Department of Agriculture is not only “unacceptable” but could lead potentially to many businesses not surviving, the Ulster Farmers’ Union has warned.

UFU deputy president Glenn Cuddy said beef farmers were caught in an incredibly difficult position.

“They’re dealing with the high costs of store cattle, expensive feed and input costs to finish off livestock, and now a beef price that is falling in the past number of weeks.

“Many of the animals now coming forward were purchased as stores at high prices in recent months. The UFU recognises that these purchases were made in good market conditions, however this strategy now represents a gamble, especially if beef prices continue to fall.”

Factory beef prices have been falling by an average of 10p per week since the end of April.

For the week ending June 7, the average steer price dropped to 651p/kg – down almost 30p in a single month. This equates to a loss of approximately £114 on a 380kg carcase.

“Despite the decline in factory prices, farmers have yet to see corresponding falls in the price of store and finished cattle at local marts. This disconnect is adding to the financial uncertainty, placing additional strain on farmers who had hoped for stability in the market,” said Mr Cuddy.

“The UFU advise farmers to consider all available sale options, including livestock marts, to ensure the best possible outcome under current market conditions.”

Beef prices are also declining in both Great Britain and the Republic of Ireland, though supplies remain tight across these regions - a factor that adds to the frustration felt by local producers.

“Members have also raised concerns that across the UK, some supermarkets are importing lower standard beef from other countries. The UFU urge local NI supermarkets to remain strongly committed to sourcing local, high-quality NI produce. This is what consumers increasingly expect, and it’s what our farmers work hard to deliver,” said the UFU deputy president.

The union, meanwhile, as part of the Sheep Taskforce, is also preparing its line of attack ahead of a meeting with the Department of Agriculture amid growing frustration at the lack of aid available to sheep farmers.

Members of the taskforce met this week to discuss preparations for the showdown with DAERA policy officials, scheduled to take place on July 1 at the NSA NI sheep event, being hosted at McFarlane’s Farm, Dungiven.

Despite efforts to engage directly with Minister Andrew Muir, who was invited to attend the event, the taskforce has been told that he is unable to join due to other commitments.

Mr Cuddy said: “Last autumn, DAERA agreed to establish a sheep-focused co-design group. However, despite repeated calls from the Sheep Taskforce, this group has not materialised. The lack of engagement and action is simply unacceptable.

“DAERA has continually cited staffing limitations as a barrier to progressing sheep sector support. It is extremely frustrating to repeatedly hear that the department does not have the ability to deliver for sheep farmers, yet nothing seems to be in progress to address the issue.

“Meanwhile, DAERA has prioritised the Suckler Cow Scheme and now the 'Farming with Nature' programme. Support for sheep farmers has been totally left behind.

“Our sheep farmers are fed up and are stressed by the impact that this ongoing lack of support is having on their businesses. They face volatile markets, rising costs and a looming 17% cut to their Basic Payment Scheme without any meaningful way to recover that lost income. Without direct support, many businesses will not survive.”

The Sheep Taskforce is renewing its call for DAERA to urgently establish a dedicated sheep co-design group, with a focus on:

- Genetic improvement programmes for sheep;

- Animal health and welfare initiatives;

- Sustainable land management and biodiversity schemes;

- Capital investment support for the sheep sector;

- Research and innovation specific to sheep production.

“The sheep sector cannot be treated as an afterthought. Many NI farmers rely solely on sheep enterprises for their livelihoods. Targeted and immediate action is needed to secure the long-term sustainability of the industry,” said Mr Cuddy.