Big prices paid for organic stock on back of EU push – but can the sums add up?

Last week’s sales again varied in numbers, with the general trend for larger turnouts.

Numbers in dairy areas looked very strong, but at least half and possibly three quarters of the entry were calves.

Demand for quality stock continued strong, with better Friesian types selling from €80-125/hd and good Angus generally €150-230/hd, and the tops making €300/hd and €350/hd, respectively.

All good on the calf side, apart of course from the poorer calf from the dairy industry.

Bottom-of-the-barrel Friesians sold for just €5/hd, with lesser Angus “€3050. Maybe. They’re just bad Friesians or Jerseys in a black overcoat,” according to one dealer.

Demandforcattle remainshigh,with more farmers and ‘seven-month men’ in attendance across the country. This lifted better store bullocks to €3.00-3.30/ kg and good heifers to €2.80-3.00/kg.

In both cases exceptional quality did fetch more, with tops of €4.00/kg achieved in many places for weanling bulls up to 400kg.

General Angus store bullocks made €2.80-3.00/kg, with the better ones €3.20-3.30/kg.

Michael Harty of Central Auctions in north Tipperary, like every other mart managers I spoke, noted the strength of the trade, in his instance up around €100/hd in two weeks

“If store men are fit to give €3.003.50/kg, what will they give when the rain stops?” he said.

Joe Clune of Sixmilebridge and Darragh Barden of Mohill were of the same opinion.

Joe reckoned that very strong prices in Clare were being driven in many instances by part-time farmers who had taken over previously full-time farming enterprises but because of work commitments now operated in a less intense but more focused manner.

Part of that focus, Joe noted, is on subsidies around the government’s push for more organic production. He reported almost fanatical demand at his special sale of 120 organic-bred stock.

Among the prices paid was €1,370/hd for 307kg Angus bullocks, with 472kgs making €2,060, while 306kg organic Limousin heifers made €1,660/hd.

With bullocks and heifers generally making €4.00-5.00/kg at Sixmilebridge, I just don’t see the sums adding up.

There have been previous drives during my lifetime to increase organic beef production, all of which foundered when it came time to beef the animal.

Growing an animal to the beefing stage is not overly expensive given a grass base. But in that final push to get them finished — that 70-100 days of intensive feeding — costs multiply rapidly.

I just don’t see ordinary farmers converting, because organic meal is considerably more expensive.

Those farmers transitioning to organic are likely to pay huge money, as was the case in Sixmilebridge, because the pool of organic cattle is just not developed enough.

Buyers draw their organic payments and then at the end of the year return to the market, where at best the number of dedicated organic fatteners will be limited.

Commercial finishers will buy, but at a price dictated by factory prices.

Don’t get me wrong, good organic store bullocks or heifers will possibly make as much or more than the equivalent non-organic animal because of their latent potential once introduced to a better feeding regime.

But in my opinion, any system built on subsidies will eventually fail. The EU replaced its entire previous subsidy system in the early 2000s because it brought huge imbalance to farming.

The current organic system smacks of politics at the expense of profit.