Kepak has announced plans to increase the rate of payment to farmers supplying cattle through its calf-to-beef programme which is run in conjunction with milk processor Tirlán.
Some of the key changes announced today (Wednesday, April 26) include a lifting of the bonus rate paid on cows, a new bonus for continental-bred cattle and young bulls, an increase in the Hereford breed bonus and overall Twenty20 bonus, as well as a wider scope for carcass weights.
The calf-to-beef programme between Tirlán and Kepak is titled the ‘Twenty20 Beef Club‘ and aims to enhance the environmental and economic sustainability of the beef supply chain.
The upgraded pricing structures for new and existing members will come into effect immediately.
In addition to the enhanced payments, the weight bands for eligible cattle have been significantly widened.
The changes aim to offer more farmers the opportunity to take part in the sustainability programme which offers club members access to “valuable market outlets for their beef”, according to Kepak.
The enhancements are expected to earn club members an average of €100-200/animal above market price.
Included in the new bonus payments is an increased Tirlán input bonus of 10c/kg (up from 5c/kg) for purchasing inputs as part of the fully traceable supply chain system.
The Twenty20 beef club enhancements, which take immediate effect for all members, are as follows:
- Twenty20 Club bonus increases to 30c/kg including the Tirlán bonus of 10c/kg;
- Hereford Breed bonus increases from 10c-20c/kg in addition to the above 30c/kg bonus;
- New continental breed bonus of 10c/kg;
- Increased carcass weight range from 260-400kg;
- Young Bulls U-19 months now qualify for a 25c/kg Twenty20 bonus;
- Cow bonus increase from 10c to 15c/kg.
The statement from Kepak said: “The payments are linked to the investment farmers are making in improved genetics in beef breeding and producing in-spec cattle.”
The programme is now open for new members up to the end of June 2023 and is also now open to farmers producing young bulls.
Commenting on the changes to the scheme, Kepak’s head of agribusiness, Mick O’Dowd, said: “Kepak and Tirlán’s technical teams work with suppliers to ensure excellent performance and efficiencies are achieved.
“The Twenty20 Beef Club is grounded in providing greater financial certainty to farmers for producing beef more sustainably.
“This club clearly shows that collaboration across the beef and dairy industry is not only beneficial to the farmer but is also supported by the end customer for the economic and environmental value it creates at farm level.”
Tirlán’s chief ingredients and agri officer, Seán Molloy, said: “The significant enhancements applied to the Twenty20 Beef Club are a positive endorsement of the success of this club and will ensure it continues to grow and provide value to Tirlán farms.”
Kepak/Tirlán Twenty20 Beef Club
The Twenty20 Beef Club was set up in April 2019 and is open to Tirlán co-op members and current Kepak suppliers.
Members can be either dairy farmers or beef finishers, with a minimum of 25 calves required per farm.
Calf sourcing can be facilitated through the club’s buy and sell digital platform and the closed-loop production programme means everything is fully traceable.
Tirlán, previously known as Glanbia Ireland, is 100% farmer-owned, with 11 high-tech processing facilities, 52 agri-branches, over 2,300 employees and sales revenue of over €3 billion.
Kepak Group is a family owned global agri-food business with a turnover of €1.75 billion and employs over 4,500 people. It specialises in the supply and processing of quality-assured Irish beef, lamb and pork products for retail, wholesale and foodservice.