Robert Forster: Feeders will benefit if they sell in-specification cattle well

[JP1]

Feeders will benefit if they sell in-specification cattle well - and turn their backs on overweights especially.

Farmers’ organisations have told a Westminster committee that prime cattle prices are being artificially depressed by monopolistic processors.

They concentrated their criticism on price penalties introduced to cover out of specification cattle, particularly those that are overweight, as evidence of this but did not acknowledge the premiums paid on carcases that hit the specifications demanded by the processor’s retail customers.

Austerity driven falls in consumer spending means that shoppers are increasingly interested in medium sized cuts taken off medium sized cattle that are offered at medium range prices and turn their back on cuts taken off heavier cattle because they are too expensive.

As a result medium weight carcases are in demand and those that are overweight are being penalised.

I fly no flag for processing companies – which, along with multiple retailers, I have regularly accused of demonstrating a potentially fatal lack of foresight by not paying feeders enough to cover reasonable costs incurred in the production of a typical beef animal.

And I agree that the current market recovery has some way to go before well farmed prime cattle will be fairly priced.

But it does worry when farmers’ representatives pick up on complaints from feeders who insist they have a right to produce, without penalty, older and heavier cattle that fit in with their established farm systems instead of the younger and slightly lighter cattle that deliver the type of carcases the retail market demands.

Despite assertions to the contrary there is competition for cattle of the right type – which in most instances means not overweight, not over-aged, farm assured, hitting mid-range classification, and not carrying for than four owners.

The GB all-cattle average, which includes stock that is overweight, and overfat as well as those that hit the highest price levels, is currently in the region of 335p.

However this week’s base range for certified Angus is 360p-390p, the Hereford base range is 353-380p while other retail scheme cattle like Shorthorns are making at least 15p above their purchaser's base which means around 360p.

And the base range for PGI (Scotch Beef) commercial cattle born and fed in Scotland is around 351p-358p.

Processor demands for commercial cattle offered in England and Wales where the current base range for beef crosses, many of which attract a 10p bonus, is 335p-355p have become more precise too.

For example the R4L base for Black and Whites is much lower at 320p-330p.

Some companies pay a 20p bonus, say £60-£70 a head, to pull in 24 month heifers as well.

Pugnacious finishers can extract even more. For example most organic stock is sold against a base range of 360p-370p. However Dovecote Park is offering 395p, St Merryn is paying 392p for heifers, and some organic cattle have been sold to ABP for 420p or more.

Bonuses on in-spec commercial cattle are not yet strong enough and farmers’ organisations would have looked more positive if they had concentrated their criticism on this – especially as penalties on out of specification stock are expected to become even stiffer over the remainder of 2016 and beyond.

Even the most stubborn feeders have to accept that carcases weighing more than 380kg-420kg, and beef bulls older than 16 months, are no longer wanted by mainstream purchasers – which means they will be penalised unless sold to one of those rare buyers who does not care.

On top of this insistence, mainly directed through McDonalds, means tougher penalties on stock with more than four owners are expected too.

(Robert Forster is a former chief executive of the National Beef Association and is the publisher of the widely read weekly trade magazine, Beef Industry News – see www.rforster.com)

 

[betweenthelines]

Asking farmers to produce what the consumer wants-that's a big challenge.

 

[spin cycle]

not that pratt again

 

[Chae1]

When's the finished beef price going to plummet due to all these dairy farms selling up Robert? Remember you predicting this a few months back.

 

[gone up the hill]

When's the finished beef price going to plummet due to all these dairy farms selling up Robert? Remember you predicting this a few months back.

Aye and don't forget that he predicted that by last summer we would be getting the highest beef prices in living memory! didn't quite work out like that the last 12 months for sure!!

Ref his article, Contx cattle wont get the fat cover down that the supermarkets want until many of them get over 400 kilos dead, also the heavy cattle come back to good money, a light beast wont come back to much more than the price/cost of a suckled calve so thus isn't feasible!

Ref the natives, one major buyer is changing their Angus grid later this month, when that comes into effect and thus with the way they grade the cattle then unless you have top end suckler bred angus steers/ heifers the scheme will be a non starter for dairy bred stuff.. ( which is a great shame as until now its paid well )

And iv yet to go into any supermarket/ fast food outlet and seen some joints/ meals cheaper because the cattle have 5+ homes..

 

[GTB]

Asking farmers to produce what the consumer wants-that's a big challenge.

It is when they keep moving the goal posts! There will be untold number of continental x cattle already in the pipeline which like GUTH says cannot finish below the max weight. Even if people stop using continental bulls now it will take three years to clear their offspring out of the system.... And we all know that by then they'll be wanting big cattle again!

 

[Chae1]

We are managing to finish Charolais X Saler cows at 400kg and getting fat cover down on them. Finished a batch at 16 months old. Steers

 

[exmoor dave]

Aye and don't forget that he predicted that by last summer we would be getting the highest beef prices in living memory! didn't quite work out like that the last 12 months for sure!!

Ref his article, Contx cattle wont get the fat cover down that the supermarkets want until many of them get over 400 kilos dead, also the heavy cattle come back to good money, a light beast wont come back to much more than the price/cost of a suckled calve so thus isn't feasible!

Ref the natives, one major buyer is changing their Angus grid later this month, when that comes into effect and thus with the way they grade the cattle then unless you have top end suckler bred angus steers/ heifers the scheme will be a non starter for dairy bred stuff.. ( which is a great shame as until now its paid well )

And iv yet to go into any supermarket/ fast food outlet and seen some joints/ meals cheaper because the cattle have 5+ homes..

Haha!, re- the "major buyer", Got angus going this week before the "change"

Like you say it's been a bloody good scheme, particularly for folk like us selling angus at the lower end of the spec.

Not going to be the same after the end of the month.

Any idea why they are so keen on cattle being under 24 mths now? Seems completely at odds of the idea of slow grown grass reared stock.

 

[gone up the hill]

We are managing to finish Charolais X Saler cows at 400kg and getting fat cover down on them. Finished a batch at 16 months old. Steers

Yea some are dropping it to 380 kilos...

Are they on ad lib from when they start eating creep??

 

[gone up the hill]

Haha!, re- the "major buyer", Got angus going this week before the "change"

Like you say it's been a bloody good scheme, particularly for folk like us selling angus at the lower end of the spec.

Not going to be the same after the end of the month.

Any idea why they are so keen on cattle being under 24 mths now? Seems completely at odds of the idea of slow grown grass reared stock.

I reckon it will take at least £100 head off them after the end of the month.

Ref the 24 months its because its another way to get cattle cheaper ( like the 4 move's/ 30 months now is ) sooner or later they will start knocking 5/10pk off the base price for all cattle over 24 months and then another 5/10pk for any over 30 months.

 

[gone up the hill]

The days of growing/ fhinshing cattle at grass will soon be a thing of the distant past as the only way to get them fhinshed by 24 months will be to house them after their first summer at grass.

 

[Chae1]

Yea some are dropping it to 380 kilos...

Are they on ad lib from when they start eating creep??

Spring born. Ad lib creep from August. 4-5kg 18% concentrate fed as part of tmr over winter. Then ramp it up about 11 months and feed same diet as we would bull beef.

Put the creep feeder out with some in May this year to see if we can finish them earlier.

 

[Top Tip.]

What annoys me is this blaming the consumer for all these changes,is it not a case of they have decided what the consumer wants and the supermarkets have worked out the most profitable weights and spec for them to buy cattle at. It is absolutely nothing to do with the consumer they just buy what is put in front of them.

 

[Henarar]

Despite assertions to the contrary there is competition for cattle of the right type – which in most instances means not overweight, not over-aged, farm assured, hitting mid-range classification, and not carrying for than four owners.

And when you done all that they will think of something else

 

[Henarar]

The days of growing/ fhinshing cattle at grass will soon be a thing of the distant past

unless you sell them for the freezer yourself then the "real" customers will be flocking back for more
Supermarkets and there processors haven't got a bloody clue how to handle meat only how to ruin it, then they wonder why demand is dropping