QPS rises `in-spec' cattle price

By Justin McCarthy

The Department of Agriculture's official price report shows that the introduction of the Quality Payment System (QPS) has resulted in an increase in the price paid for cattle finished to the required market specification.

An Irish Farmers Journal analysis of the average prices paid for last week, and the week previous, showed that the R4L steer price, paid by the 19 factories that reported prices on both weeks, increased by 1.9c/kg, with the R3 price increasing by 1.8c/kg.

The average price paid for better quality U grading cattle increased by 4c to 8c/kg, depending on fat score. However, the QPS system is penalising farmers with over-fat cattle.

Its introduction has seen the average price paid for R4H price fall by 7.3c/kg, with the price paid for O4H cattle falling by 7.5c/kg.

However, in a meeting with the meat industry on Tuesday, the IFA raised a number of issues regarding the QPS. Fat score was at the top of their agenda, and proposals have been put forward to ease the difficulties on animals grading fat score 4= for farmers with cattle for immediate sale.

IFA have also warned the meat factories that the base price must rise. IFA president Padraig Walshe said: ''We told the factories that under no uncertain terms, the base price for cattle must rise substantially without delay.'' In addition, the IFA said farmers with bulls must get the 6c/kg Quality Assurance bonus.

Under the QPS, the average price paid for O3 and O4L steers deceased by 1.6c/kg and 1c/kg respectively. However, it should be noted that, with the exceptions of the P grade, the Department price reporting system is not yet able to identify the new split grading system operated under the QPS.

No account is taken of the difference in price paid for the split grades +/=/-. Therefore, the fact that overall O grade price is down by just 1c/kg to 1.6c/kg would indicate that the price paid for O+ grading steers increased.

The Department prices also include any deductions or bonus payments that apply with regards to QA status of the animal and age at slaughter. The fact that the O-grading carcases are not entitled to a QA bonus would further drag down the average O grade price. Under the QPS, the price paid for P+ grading steers increased by 1.7c/kg.

The impact of the QPS on the price paid for the better quality animals within each grade is more evident when we look at the price paid for heifers. The average price paid for all O-grading heifers after the introduction of the QPS increased by 1.3c/kg and 3c/kg for fat classes 4L and 3. This increase is largely due to the fact that a higher percentage of heifers within the O grade will grade O+ than compared to steers.

The price paid for R3 and R4L heifers increased by 2.7c/kg and 3c/kg respectively. Again, the price paid for over-fleshed heifers fell by up to 8c/kg.