Brexit: Southern beef farmers in despair with prices 11% below break-even

Brexit is causing southern beef farmers substantial losses with prices 11% below break-even.
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However, they hope the impact can be lessened with an EU grant of over €1bn (£860m) this year.

The issue of the impact of Brexit on southern beef prices has caused farmers to picket across the Republic in recent months.

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A spokesman for the Irish Farmers Association (IFA) said the main issues are still the price of beef and the ongoing impact of Brexit on the market – as well as the threat of the UK doing deals with other countries.

IFA president Tim Cullinan called on the Irish government and EU to create a €400m (£344m) support fund for Irish farmers.IFA president Tim Cullinan called on the Irish government and EU to create a €400m (£344m) support fund for Irish farmers.
IFA president Tim Cullinan called on the Irish government and EU to create a €400m (£344m) support fund for Irish farmers.

The IFA believes this raises the risk of the UK being flooded with cheap beef which could then squeeze out Irish produce.

“This has the potential to damage our market share, both in the UK and the EU,” IFA spokesman Niall Madigan told the News Letter.

“With beef prices well below €4/kg (£3.44), it’s a long way from the break-even price, estimated by Teagasc at €4.50/kg (£3.87). While sterling is strengthening, it’s still almost 20% behind the pre-Brexit vote levels and impacting directly on incomes for beef farmers.”

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He added that the EU’s Brexit Adjustment Fund must prioritise beef farmers who have borne the brunt of the Brexit impact. “It has been announced that over €1bn has been allocated to Ireland and we will be making a submission to our government based on the losses incurred in the sector,” he added,

In addition, the IFA president Tim Cullinan has called on the Irish government and EU to have a €400m (£344m) support fund for Irish farmers this year to address market disturbances caused by Brexit.

Irish Deputy Prime Minister Leo Varadkar attempted to calm nerves when speaking to the IFA annual dinner at the end of last month – but could offer no certainty or solutions.

“Brexit is the great political challenge of our time, and we have to hold our nerve,” he said. “I can’t offer farmers the reassurance provided by certainty, but I can reassure you that until things are certain we will keep fighting your corner.”

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Around a third of southern food and drink exports – worth €4.3bn (£3.7bn) – currently go to the UK and new customs and border procedures are proving a headache.

Earlier this month the Irish meat industry said its export costs had increased 40%. In a submission to the Joint Oireachtas Committee on Agriculture, Meat Industry Ireland highlighted the increases due to the loss of frictionless trade.

DUP MP Sir Jeffrey Donaldson said: “Despite the EU’s rhetoric, they have shown scant concern for issues faced in either Northern Ireland or the Republic.

“We see the very same problems impacting southern lorries attempting to return from Great Britain as those being experienced by hauliers from Northern Ireland. Instead of dismissing issues as ‘teething problems’ it is time for the UK government and the European Union to start working on solutions.”

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