Beef remains the strongest sector within organics. While there are also significant numbers of sheep farmers, sheep meat has struggled to gain a price premium.Beef on the other hand, has both numbers and, by and large, something of a price premium. While there are preferable times of the year to sell to gain the premium, the largest organic meat processor in Ireland or Britain, Good Herdsman, recently let it be known that there is a shortage of about 11,000 beef animals in the system.
(Pic: Joe Condon's Galloways with room to roam)
From humble local beginnings in 1998, the Leitrim Organic Farmers Co-op now has a membership of over 100 beef and sheep farmers, from many counties across Ireland. The main areas it focuses on for its members are in finding markets, orgnaising for training and education, advice and lobbying.
A number of organic cattle marts have just finished up. I spoke to John Brennan of the Leitrim Co-op about how the trade has been.
�Confidence has returned to the sales� he tells me. �We had two in Drumcollagher, there were 137 sales at the first and 290 at the second.�
�Prices have improved - typically 2E per kg for heifers, E2.30 per kilo for good weanlings, while forward stores are also meeting good trade.�
�The numbers of organic cattle moved weekly is nearly at record levels - here and in the UK � and while the price is not at the record 2007 levels, it is nonetheless strong and giving confidence� .
Regarding export markets, there are some positive signs. �Tescos in the UK are buying a lot more organic meat again now. They seemed to panic a bit at the start of the downturn, and whipped organic off the shelves. While some customers did trade down to discounters, some of these in turn returned to their preferred supermarkets. So Waitrose, for example, have regained market share.�
Indeed, according to a report earlier in the year from the UK's Soil Association, among the three supermarkets with the biggest shares of the organic market � Sainsbury�s, Tesco and Waitrose � it was Waitrose that proved the most resilient in the recession. Its organic sales fell by only 3.5% in 2009 and it is predicting growth of 3-5% in 2010.
�There have also been increases in the market in Holland, especially for forequarter meat. This leaves other options with rear quarter meat�.
There are of course concerns: �the cost of feed is still an issue. The Sterling differential is helping, but some farmers are now growing their own feed. Some grow for Flahavans, and keep a portion for animal feed. Red clover is also coming strong earlier, and there was an earlier cutting date this year too�
Another issue is the age of slaughter. While there is a preference in the factories for animals slaughtered under 30 months, this comes with various costs and concerns for organic farmers.
According to John Brennan, as finishing under 30 months is difficult with vontinentals, �why not go to 33 or 35 months? Some cattle only reach their full desirable carcass weight at this age, especially the bigger animals like Charlois. But some processors, Slaney excluded, don't want animals that size.�
�A lot of it comes down to breed. With an Aberdeen Angus, they might be close to 280 kg at 20 to 24 months. But to push to and past 300 kg, or to try to get close to 350kg, is very difficult. You'd need another 10 to 12 months.�
�With the bigger continental animals, the Limosins or Belgian Blues, its very difficult without a lot of grain feeding, and feed is very expensive in organic.�
The discussion turned to paying by the grade. In organic, farmers are not paid by the grade for beef in Ireland, though they are in other countries, including the UK. He was especially animated about this issue. As you will see in my next posting on this topic.
From humble local beginnings in 1998, the Leitrim Organic Farmers Co-op now has a membership of over 100 beef and sheep farmers, from many counties across Ireland. The main areas it focuses on for its members are in finding markets, orgnaising for training and education, advice and lobbying.
A number of organic cattle marts have just finished up. I spoke to John Brennan of the Leitrim Co-op about how the trade has been.
�Confidence has returned to the sales� he tells me. �We had two in Drumcollagher, there were 137 sales at the first and 290 at the second.�
�Prices have improved - typically 2E per kg for heifers, E2.30 per kilo for good weanlings, while forward stores are also meeting good trade.�
�The numbers of organic cattle moved weekly is nearly at record levels - here and in the UK � and while the price is not at the record 2007 levels, it is nonetheless strong and giving confidence� .
Regarding export markets, there are some positive signs. �Tescos in the UK are buying a lot more organic meat again now. They seemed to panic a bit at the start of the downturn, and whipped organic off the shelves. While some customers did trade down to discounters, some of these in turn returned to their preferred supermarkets. So Waitrose, for example, have regained market share.�
Indeed, according to a report earlier in the year from the UK's Soil Association, among the three supermarkets with the biggest shares of the organic market � Sainsbury�s, Tesco and Waitrose � it was Waitrose that proved the most resilient in the recession. Its organic sales fell by only 3.5% in 2009 and it is predicting growth of 3-5% in 2010.
�There have also been increases in the market in Holland, especially for forequarter meat. This leaves other options with rear quarter meat�.
There are of course concerns: �the cost of feed is still an issue. The Sterling differential is helping, but some farmers are now growing their own feed. Some grow for Flahavans, and keep a portion for animal feed. Red clover is also coming strong earlier, and there was an earlier cutting date this year too�
Another issue is the age of slaughter. While there is a preference in the factories for animals slaughtered under 30 months, this comes with various costs and concerns for organic farmers.
According to John Brennan, as finishing under 30 months is difficult with vontinentals, �why not go to 33 or 35 months? Some cattle only reach their full desirable carcass weight at this age, especially the bigger animals like Charlois. But some processors, Slaney excluded, don't want animals that size.�
�A lot of it comes down to breed. With an Aberdeen Angus, they might be close to 280 kg at 20 to 24 months. But to push to and past 300 kg, or to try to get close to 350kg, is very difficult. You'd need another 10 to 12 months.�
�With the bigger continental animals, the Limosins or Belgian Blues, its very difficult without a lot of grain feeding, and feed is very expensive in organic.�
The discussion turned to paying by the grade. In organic, farmers are not paid by the grade for beef in Ireland, though they are in other countries, including the UK. He was especially animated about this issue. As you will see in my next posting on this topic.
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