Calls for agri bailout amid crash fears

Beef and milk price cuts looming for farmers as demand collapses due to Covid-19 restrictions

Ciaran Moran and Margaret Donnelly

FARM organisations and processors are calling for an urgent support package as fast-food chains follow restaurants and bars in closing their doors across Europe.

McDonald’s, a major buyer of Irish beef, announced on Sunday that it was closing its outlets in Ireland and the UK. Supermac’s announced yesterday it will close all outlets by Thursday evening.

A spokesperson for Meat Industry Ireland (MII) said the food service sector, which accounts for over a third of Irish beef exports, has “effectively been shut down and orders stopped”.

Beef, dairy and sheep farmers now face price cuts as the impact of Covid19 restrictions collapses markets and hinders trade.

Hogget quotes were pulled by some meat processors yesterday, while beef prices are expected to fall this week. Farm leaders are now demanding that storage aid measures be introduced to take excess production off the market.

The Farming Independent understands that the Minister for Agriculture, Michael Creed, will discuss the crisis with fellow EU farm ministers via a teleconference tomorrow.

MII said that while supermarket demand spiked for a short period, there are signs that demand is returning to normal levels as bulk and panic buying ceases.

“For beef in particular, the loss of food service outlets is creating a major imbalance as food service traditionally takes a far greater proportion of Ireland’s steak cuts, which account for a high share of the overall market return,” said an MII spokesperson.

Turmoil

Dairy processors are also facing significant challenges. One industry source told the Farming Independent that the entire supply chain is facing an extended period of turmoil.

“Containers for shipping are almost impossible to source. Without containers, it makes shipping product almost impossible. Returns for most export products have tumbled and a correction of the farm gate price looks inevitable. The biggest factor is the unknown. How long this will last is an answer no one has.”