Beef breeders retain 84% of value

Marts: Nineteen months after the ending of the headage-based livestock premiums, beef breed young stock have held their pre-Single Farm Payment value well, in contrast to fears of a significant drop in price after January 1 2005.

The headage-based livestock premiums, plus extensification and slaughter premiums on male animals was worth €540/head over the lifetime of the animal before the changeover on January 1, 2005. Although widespread concerns were expressed within the breeding sector that the change over would result in a significant drop in returns to breeders, official figures to date show that most of the benefit has remained with the young stock sellers.

Officially compiled mart sales figures for the first seven months of 2006, compared to the same period in 2004 — the last year pre-SFP — show that beef breed male animals aged 6-12 months have held 84% of their 2004 value, while dairy breed males fared worst, losing 25%. In monetary terms the typical beef breed male averaged €120/head less for the first seven months of 2006, when compared to the same period in 2004. The price of the typical dairy breed male has dropped by an average of €130/head over the same period.