Commodity watch by policy officer Daryl McLaughlin
Beef farmers are no different from many other farmers this spring as they all face crippling uplifts on inputs such as fertiliser, feed and fuel. Many farmers remain concerned as to how they will be able to make ends meet in order to stay afloat and remain in business. Livestock markets and factories are seeing more cattle than what would usually be offered.
CAN fertiliser has increased from about £200/ton from spring 2021 to £900/ton this spring – an increase of £700/ton (350 percent increase). Beef finishing rations has increased from £230/ton from spring 2021 to £310 this spring – an increase of £80/ton (34.8 percent). There is also a feed increase of about £20/ton coming from the beginning of April for some merchants which would bring a beef feed ration to about £325-£330/ton. Red diesel has increased from £0.56/l in the spring of 2021 to £1.10/l this spring – an increase of £0.54/l (96.4 percent).
Other factors such as lime, bale plastic, grass seed and minerals have also seen an increase lately, and this will impact beef farmers profit margins as well. As a result of higher input costs, the market needs to retune a stronger beef price if beef farmers are to meet these input rises as they cannot be absorbed.
The uncertain spring is impacting primary suckler and dairy beef calf rearers confidence, these farmers need certainty to plan for the future. Prices for lighter and plainer types of store cattle have come back in recent weeks as well as the price of drop calves.
Beef finishers now need to see beef price contracts from processors. Retailers need to take some additional ownership and ensure that farmers and producers are rewarded fairly for their produce. The UFU have been and will continue to engage with processors, retailers and government officials over the coming weeks and months. We need to see realistic government intervention with a financial package put in place to help offset input costs or the food in a year to 18 months’ time, will simply not be there. The UK is in a vulnerable place in terms of food security as it only sits at 60 percent of its food consumption.
The Ulster Farmers’ Union has been raising these input concerns with the UK government, NI Executive Ministers and in Brussels. This week the UFU raised the matters with COPA-COGECA were most EU member states raised similar concerns for beef production as a result of rising input costs on the back of the Ukrainian crisis.
