EDITOR'S BLOG
TOUGH YEAR
For cattle industry in Ireland
by Service Dealer Ireland Editor, Liam de Paor
 
Liam de Paor, Service Dealer Ireland Editor

Over recent weeks Irish cattle prices have fallen below the equivalent period in 2017.

 


The live export trade to Spain has been strong during 2018, with total numbers for the year to date recorded at 87,954, almost twice the level for 2017.


There was higher calf exports right throughout the year and strong exports of weanlings since mid-August. Exports of calves have been a mixture of Friesian, Angus and Herefords, while exports of weanlings have also included some continental-cross bulls.


According to Bord Bia Irish live exports for this year are running at 212,828 head. This increase is mainly due to the number of dairy calves exported to Spain and the Netherlands. The number of bulls exported to Libya in 2018 was 4,489 head so it’s good to see this market has reopened despite the political chaos in that country.


Since the beginning of 2018, finished cattle prices have been slightly ahead of last year’s levels, averaging €3.91 per kg deadweight, excluding VAT, for R3 steers. This improvement mainly reflects the higher prices paid during the spring and early summer. However, over recent weeks Irish cattle prices have fallen below the equivalent period in 2017.


For the first 11 months of 2018 over 1.63 million cattle have been slaughtered in Ireland, official data shows. Compared to 2017, that is an increase of 56,099 head or 3.56%. This is a happy position for the factories however livestock farmers feel that the increased numbers has put pressure on finished cattle prices.


Some 615,035 steers and 438,129 heifers were slaughtered in approved beef export plants this year. In addition, some 362,067 cows have been processed this year – an increase of 22,563 head on 2017.


There is speculation in farming circles that the depressed price of beef and cattle now is due to the Brexit process and its deadlines. Beef farmers in Ireland regularly point out that factories pay significantly more for cattle in Britain although their cattle are going to the same beef market.


Official figures showed that there was a significant fall in suckler cow numbers from June to December of 2017, as the total number of suckler cows at 864,517 was down in June 2017 by almost 140,000 cows or a 14% decline in six months. There is no doubt that sucker farming is a low margin business so we can expect to see more of these farmers exiting this sector.


According to the Livestock & Meat Commission (LMC) – during the week ending July 15 – R3 heifer prices in the Republic of Ireland were 19.2c/kg behind what R3 heifers made in Britain and were on a par with the price achieved in Northern Ireland.


For example for the week ending July 15, a 300kg heifer carcass slaughtered in Britain made €126 per head, more than heifers in the Republic of Ireland. So as one would expect relations between the factories and cattle producers are not good indeed.


Cull cow prices are down by 33% since July 2018 and this is partly due to the increased no. of finished cattle available for slaughter and of course the increased no. of cull cows for sale as some dairy farmers reduced the size of their dairy herd.


Farmers behind a new splinter group of the Irish Farmers’ Association (IFA) say they formed their croup as the farm organisations have failed to establish a tenable plan for the beef sector.


The core members of the recently-formed body – called the ‘Beef Plan Group‘ – have been involved in a producer and purchaser group together for the last three years.
However, due to frustration over cattle prices remaining well below production costs, the group decided to take action into their own hands.


Over the last three months the group – which now claims to have more than 2000 members from across the country – drafted a new beef plan entitled ‘Beef Plan 2018-2025’. Their aim is to get 60% of beef producers or around 40, 000 farmers organised so as to pressurise the meat factories by withholding stock for sale as one of their tactics.


The blueprint of the document proposes 86 points across eight phases to address the issues of unsustainable farming and low prices.


The proposed phases identify different aspects that need to be targeted, including: sustainable price and factories; animal health; purchasing groups; producer groups; farm safety; government schemes; farm unions; and abattoirs.

NEWS
POTTINGER APPOINT NEW DEALER
For the Midlands
 
Atkins Ltd

Pottinger, the Austrian farm machinery manufacturer, as appointed Atkins Ltd of Cork as their new farm machinery dealer for the Midlands.

 


Pottinger, the Austrian farm machinery manufacturer, as appointed Atkins Ltd of Cork as their new farm machinery dealer for the Midlands.

 

Atkins Farm Machinery has served the farming community of Co. Cork since 1878 and claim to be Irelands longest established farm machinery business.

 

They recently opened a new depot in Birr, Co. Offaly.

 

The appointment of Atkins Farm Machinery in Birr now sees all of the Atkins Farm Machinery depots offering the full Pottinger grassland and tillage range of equipment.

 

According to Mark Wolfe, md of Atkins, “Our Birr branch, which doubles up as a retail business for Fendt and a distribution hub for Bredal and Bogballe fertiliser spreaders, opened a year ago.

 

"The addition of the Pottinger portfolio completes our offering, by adding a tillage product line and leading grassland products."

HIGHER 2018 INCOMES FOR IRISH TILLAGE FARMERS
Good news for the farm machinery trade
 
Tillage farming

Tillage farms were the only ones to see their income increase this year, according to the latest Teagasc economic report.


Tillage farms were the only ones to see their income increase this year, according to the latest Teagasc economic report.

 

 

Despite a 23% drop in production caused by falling yields and a smaller sown area, a 30% to 40% increase in prices made up for the lower harvest.

 

“Seventy-eight per cent of cereal farmers had a positive net margin in 2018,” said Teagasc economist Fiona Thorne.

 

This is good news for the farm machinery trade as tillage farmers are among their best customers

NEW BEET INDUSTRY FOR IRELAND?
Would generate a big increase in new farm machinery sales
 
Beet harvesting

There is a lot of interest in resurrecting the beet industry and meetings held around the country have attracted large audiences.

 


There is a lot of interest in resurrecting the beet industry and meetings held around the country have attracted large audiences.

 

Beet Ireland explained that it is looking for 1,000 growers to invest €1,000 in a grower’s co-op.

 

 

The €1 million would then be matched by Beet Ireland in the form of the site for the beet plant.

 

That €2 million will be used in the planning process and growers would then be asked to invest another sum of money – the amount would be dependent on other funding that is secured.

 

If secured those 1,000 growers will need to produce 1.4 million tonnes of beet per year.

 

This equates to approx. 50 acres per grower which is quite realistic.

 

210,000 tonnes of sugar and 19 million litres of bio-ethanol would be produced from this amount of beet.

 

A new beet industry would generate a big increase in new farm machinery sales and of course beet pulp would become a popular ingredient in compound feeds.

CAVAN TRACTORS IN CHRISTMAS PARADE OF LIGHTS
Raises €8,500
 
Parade of lights

The Active Agri Association held a memorial parade of lights on Saturday Dec 1st in Killinkere, Co Cavan, in honour of one of its founding members, Charlie McCann.

 


The Active Agri Association held a memorial parade of lights on Saturday Dec 1st in Killinkere, Co Cavan, in honour of one of its founding members, Charlie McCann.

 

The spectacular tractor run was in aid of the children’s ward at Cavan General Hospital.

 

Over 100 tractors registered for the run, all decorated with fairy lights, Christmas trees and tinsel.

 

The parade of tractors started its two-hour long journey at 4.30pm, making its way through the local towns, meeting Santa Claus along the way.

 

An estimated €8,500 has been raised from the charity event and will be given to the children’s ward at Cavan General Hospital in the coming year.

STIHL TO MAKE BTME DEBUT
Company at Harrogate show for first time
 
STIHL RM 756 GC professional mower will feature at BTME

At BIGGA's trade show for golf greenkeepers, STIHL will be exhibiting its full range of grounds care products, including its new range of professional lawn mowers.

 


STIHL have announced that they will be attending the British and International Golf Greenkeepers Association's BTME exhibition for the first time in 2019.

 

Taking place at the Harrogate International Centre, in Yorkshire, England from January 22-24, STIHL will be using BIGGA's show aimed at the golf greenkeeping sector to showcase its full range of grounds care products, including its new range of professional lawn mowers.

 

RM 756 GC

 

The company's full range will be on display, including the RM 756 GC, the RM 655 RS rear roller mower and the RM 4 RTP mulching mower. All created for professional use on larger areas, each mower within the collection is described by the company as being built for maximum durability and comfort for prolonged use.

 

Features of the RM 756 GC professional lawn mower include a solid mono handlebar that makes emptying the 80-litre grass box simple, whilst low vibration figures allow the mower to be used in comfort for a full working day. In addition, it comes with a 3-speed gearbox and a brake blade clutch mechanism to increase working speed and reduce machine down time. The deck housing is made from high quality magnesium to maintain durability and reduce weight, where as the full size polymer deck insert offers impact protection, further improving durability.

 

The RM 655 RS benefits from a stainless steel driven metal roller. Fitted with a mono-comfort handle as standard, the body design of the new mower allows for easy access and maintenance of working parts such as drive cables, pulleys and the drive belt. The optimised rear deflector flap works with the mono-comfort handle, improving access to the grass box and making emptying easier. The unit also features Blade Brake Clutch (BBC).

 

The RM 4 RTP is a 1-speed drive mulching lawn mower. The company says the self-propelled machine features anti-vibration elements, skirt protectors and a powerful engine. Features such as SmartChoke, double ball-bearing wheels and excellent grip aid operation while front and rear carrying handles aid transportation.

 

STIHL will be located on stand 108 in the Blue Zone at BTME.

JOHN DEERE ANNOUNCE Q4 NET INCOME OF $785M
Benefits from improvements in market conditions
 
John Deere

In the fourth quarter, farm machinery sales in the Americas made further gains while construction-equipment sales continued to move higher.

 


Deere & Company reported net income of $784.8 million for the fourth quarter ended October 28, 2018, or $2.42 per share, compared with net income of $510.3 million, or $1.57 per share, for the quarter ended October 29, 2017.

 

For fiscal 2018, net income attributable to Deere & Company was $2.368 billion, or $7.24 per share, compared with $2.159 billion, or $6.68 per share, in 2017.

 

 

Affecting results for the fourth quarter and full year of 2018 were adjustments to the provision for income taxes due to the enactment of U.S. tax reform legislation on December 22, 2017 (tax reform). Fourth-quarter results included a favorable net adjustment to income taxes of $37 million, while the full year reflected an unfavorable net income tax expense of $704 million. Without these adjustments, net income attributable to Deere & Company for the fourth quarter and full year would have been $748 million, or $2.30 per share, and $3.073 billion, or $9.39 per share, respectively. 

 

Worldwide net sales and revenues increased 17 percent, to $9.416 billion, for the fourth quarter and rose 26 percent, to $37.358 billion, for the full year. Net sales of the equipment operations were $8.343 billion for the quarter and $33.351 billion for the year, compared with respective totals of $7.094 billion and $25.885 billion in 2017.

 

“John Deere has concluded another solid year in which the company benefited from a further improvement in market conditions and a favorable customer response to its lineup of advanced products,” said Samuel R. Allen, chairman and chief executive officer.

 

“In the fourth quarter, farm machinery sales in the Americas made further gains while construction-equipment sales continued to move higher, helped in part by our Wirtgen road-building business, whose financial contribution has exceeded our original forecasts. At the same time, the company has continued to face cost pressures for raw materials such as steel, which are being addressed through pricing actions and ongoing cost management.”

 

Added Allen, “The company’s strong performance has allowed for significant investment in new products, services, and technologies. In addition, the company in 2018 returned almost $1.8 billion to shareholders in higher dividends and the repurchase of over $900 million of stock. These steps reflect the strength of the company and our optimism about its future prospects.”

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