This story caught my eye because it encompasses the very reason this site was created, improving price transparency and market information for farmers.
But how far should we expect processors to go, as in the market now we have a wide variation of attitudes to these issues. Some companies publish a one price for eveyone deal, others publish but often offer non publicised specials for volume, or out of season reliable supply. Some have periods where they purchase heavily on a CPK deal, while the processors from the north still seem to operate on a "pay what you have to" and will do any deal dependent on demand, and publish nothing.
The question I put to one processor who refuses to publish any price information, is how can farmers benchmark the performance of different exporters without some price information. This company prides itself on its benchmarking data on animal performance it uses to stimulate farm management improvements, but are not willing to be judged in a similar way with their industry peers.
While I accept price is only one part of making a deal, for the industry to achieve common goals, trust that the pie is being shared equitably is important to many farmers, and nondisclosure of price deals upsets that trust.
Viewers of this site show demand for market information is evident, but is it realistic to expect more price detail or does commercial sensitivity rule? Your views?
Livestock Price Coordinator for the Irish Cattle and Sheep Farmers’ Association (ICSA), John Cleary, has said that games are being played by factories this week as prices being quoted are differing greatly from prices being paid out despite a real need for top quality cattle reports The Beef Site.
On this week’s trade, Mr Cleary said: “There is a real difference in prices this week on what’s being quoted and what’s actually available. From what I’m hearing on the ground is that factories are trying to influence the trade for later in the year so they are pulling quoted prices now in August." "However, there is a real shortage of prime cattle in the factories across the country. From what’s being said in factories is that only the big farmers are getting the best prices."
"The farmer that’s coming in with a load or half load of animals or that is only coming in a with a few cattle every few months isn’t getting anything like the prices that are being given to the big sellers. If a farmer is sure of the quality of their animal then they need to push hard for better prices as they are available and factories are paying higher than what’s being quoted.”
3 Comments
Seems to be more a North Island issue this. Most sheep cockies I know down here are very tribal to either of the co operatives although AFFCO have put the cat amoungst the pidgeons of late with a consistantly higher schedule. However their suppliers forgo the potential for pool and dividend payouts so its swings and roundabouts.
If only you bloody North Islanders would show abit more commitment!
Shags sheep, we are too canny for that. We don't pay freight up here and stock goes in all directions. I get on the phone and ring around to get the best offer, back in the 80's we were loyal to HBfarmers meat co, Wedell,richmond, affco, hellaby's,riverlands etc, we lost our innocence and now we just go for price. We have fewer choices and AFFCO have made big in-roads not so much on price as consistancy, they pay one price no special clients and give space when you need it. Im a bit concerned that there is some cross sudsidy going on with winter lambs, as I think the prices are too high and they may skim some off our spring lambs. WE are losing lambs now, lots of snow and a lot of farmers are in the middle of lambing, been very cold and wet with driving rain, locals have sheep in woolsheds.
Any lambs born tonight won't make it.
Aj, I hope the weather has abated and losses can be minimised. A standard storm that passes over in a couple of days is usually of fairly minor consequence but when it lingers for the greater part of a week its pretty distressing on man and beast. Good luck to everyone up there.
There is still snow on the ground here but as we,re 3 to 4 weeks from lambing the toll is harder to quantify. Its knocked the old girls around abit and metabolic issues are possibly to follow but its far worse during actual lambing.
As for your points re the marketing of your lambs, I understand where you're coming from but I do find it a frustration. The greater good would see farmers commiting their supply on at least an annual basis, giving their company the ability to market said product most effectively knowing they were actually going to get it in the first place. I suspect you wouldnt disagree with that but have become disillusioned and cynical by having been disadvantaged being loyal in the past?Therein lies the catch 22. My own theory is that I would rather be part of the solution than part of the problem.... damn my optimistic idealism!
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