Kepak reveals in-spec bonus pricing structure and weight penalties
Kepak has revealed details on weight limits and restrictions for heifers, steers, young bulls and cows, regarding the new in-spec bonuses that were agreed last month.
The full document – seen by AgriLand – outlines details on penalties that will apply to overweight and underweight heifers, steers, young bulls and cows; plus, cow grade and fat cover penalties.
The pricing structure includes details of the newly-agreed in-spec bonuses on steers and heifers under 30 months, between 30 and 36 months (O= to 4=), and steers and heifers falling into the O-, 4+ category.
They must meet the following criteria:
- Must be from a SBLAS approved farm(s) for at least 70 consecutive days;
- Must have been a minimum of 60 days on the last SBLAS farm;
- Must have a maximum of four movements.
The table below indicates that steers and heifers meeting the above criteria, and falling into the 240-420kg weight bracket, will be paid the base price. It also indicates the range of penalties that will be applied to specific weights.
Steers and heifers:
The table below outlines that young bulls meeting the above criteria, and falling into the 240-400kg weight bracket, will be paid the base price. It also indicates the range of penalties that will be applied to specific weights.
The table below outlines that cows weighing 270kg+ will be paid the base price; additionally a range of penalties for certain weight brackets is also highlighted.
Cow weight deductions:
In relation to cow fat cover, any animal scoring 2+ to 4+ will be paid the base price. Cows with a fat score of 2= face a penalty of -15c/kg, while the maximum penalty of -100c/kg will apply to cows with a fat score of 1-.
Cow fat deductions:
Moreover, cows grading P= will face a penalty of -15c/kg, while P- cows will be hit with a -20c/kg penalty. See table below:
Cow grade deductions:
Notes on young bull pricing
The document says:
- Young bulls under 16 months that are over 400kg are priced as young bulls between 16 and 23 months;
- Base price for under 16-month young bulls applies to cattle with a fat cover of 2+ or better. QPS grid offsets apply to cattle with a fat cover of 2= or less;
- In-spec bonus of 12c/kg will be paid on eligible under 16-month young bulls with grades from an O= to 4= and with a carcass weight of between 240kg and 400kg.
Kepak Producer Groups
Finally, the document states that farmers supplying cattle through any of Kepak’s producer groups such as: KK Club; Twenty20; Angus; Hereford; Wagu, etc. should reference the agreed pricing structure of the group in question.