The year of 225 different prices for beef cattle

FOR beef farmers, 2010 may be recalled in history as a crossroads for the industry in this country, when decisions made led to a major shift in production.

The year dawned with farmers trying to get to grips with the controversial new payment system with an emphasis on rewarding quality — the QPS (Quality Pricing System). The system had been introduced in December 2009 at 72 hours notice to farmers, who struggled to understand the possible 225 different payment grades at the beef factories. The objective was well founded — to deliver higher rewards for better quality animals — but the major mistake was over-penalising by up to 54 cents/kg (19p/lb) of farmers of O and P grade animals, compared to the R3 base price. This seriously reduced returns to farmers selling the 42% of the national kill comprised of O-grade animals.

IFA spent most of the year criticising the low base price at the factories, while farmers in all regions vented their anger at IFA for having agreed to a payment system that reduced returns for so many cattle.