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.

Young bulls:

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.

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