A range of price bonuses is currently available at beef factories for farmers supplying cattle that meet certain criteria.
Different factories have different price bonuses available to farmers. Some of the bonuses available include the Quality Payment System (QPS) bonus, the breed bonus which is available for Angus and Hereford cattle, a weight bonus (which is on offer at one outlet) and a sustainability bonus (available at two separate factories) .
This week, Certified Irish Angus announced it is taking bookings for its 2023 off-season bonus, which will be made available to its members this spring.
The producer group Certified Irish Angus is offering a bonus of 30c/kg for eligible Angus animals slaughtered with its processor partners, ABP and Kepak between April 3, 2023 and June 9, 2023.
Farmers who are members of ABP Food Group’s Advantage Beef Programme can qualify for a 20c/kg Sustainability Bonus for all eligible cattle.
Kepak also has a premium available for farmers who are members of its Twenty20 beef club.
Finally, farmers whose herds are Quality Assured, receive an additional 20c/kg QPS bonus for all prime cattle which meet the criteria for the bonus.
This leaves a total of 70c/kg in bonuses available for Angus cattle that meet all the required criteria and are slaughtered at the relevant sites between April 3, 2023 and June 9, 2023.
Base price peaked in 2022 at approximately €5.30/kg on the grid. Assuming this price was reached again this year, it would leave an ‘all in’ price of €6.00/kg on the table for qualifying R- and R= grade Angus cattle. If base price surpasses last year’s peak level, which could likely happen, then the all-in price will be higher.
70c/kg equates to €245 on a beef animal with a carcass weight of 350kg. While meeting the criteria for all the available bonuses may require some changes in management practices, the financial rewards can make it worthwhile for farmers.