New quality beef pricing offers 28c per kg extra

“SUBSTANTIALLY better rewards for quality cattle” were promised by beef processors last Monday, as a quality payment system (QPS) was introduced, effective immediately.

Quality differentials are now based on meat yield, and a 6c/kg (€21 per head) bonus for cattle aged under 30 months from quality assured farms in the Beef Quality Assurance Scheme has also been introduced.

According to processors, QPS has increased the quality differential between an O and U grade steer from about 20c to 48c/kg.

They said it does not overly discriminate against the lower grade animals — in fact, the market return for the majority of O+ conformation animals would improve.

Meat Industry Ireland (MII) director Cormac Healy said: “To smooth the introduction of the new QPS, producers have, for the last number of months, received carcase classification information based on the expanded 15-point scale in addition to the 5-point classification data used in the past.

“Ireland will now be the only country in the EU with a QPS based on automated grading technology which delivers an objective, consistent and uniform assessment of carcase grade.”

The new payment system applies to steers and heifers.

It will be cost neutral, with processors adjusting their base price (R3) to ensure that the changeover to the QPS is cost neutral.

Meat Industry Ireland has given an example of how QPS will reward quality, based on prices for the week ending November 22, as reported by the Department of Agriculture (see accompanying tables).

Apart from the conformation and fat score of the carcase, farmers are also to be rewarded for attaining quality assurance and age at slaughter requirements. A 6c/kg bonus is paid for animals which are quality assured and under 30 months (and which satisfy the 70-day residency period on the final farm and have not had more than three farm movements in their lifetime).

However, O minus and P plus graders, or animals fat graded at four plus or five don’t qualify. For animals over 30 months which are not quality assured, 6c/kg is taken off the basic price. There is no bonus or penalty if either the quality assured or the age requirement is attained.