The subject of cattle weights has crept into the conversation in recent times with some factories suggesting that their moratorium is coming to a close at the end of the year. It is clear that many in the Irish beef processing industry want to make a significant change to the way beef is produced in Ireland, with carcase weight being foremost in this debate.

The overriding objective has to be that Irish beef is sold in the highest-value markets available, wherever they are and whatever it takes to serve them. It is also true that the market place for Irish beef is very different from what it was twenty years ago and it continues to change as new markets are opened and developed.

Production cycles

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However, what cannot be overlooked is that changing beef production systems is like turning a supertanker. It cannot be changed instantly or even over the course of one year. While pork, poultry and even lamb production cycles from conception to processing can be completed in weeks, for beef it is an absolute minimum of two years. That only covers 16-month bull beef production whereas more traditional steer systems require at least three years and in some less intensive system even longer.

If change is right for the industry, then it needs to be done in an orderly way with a sufficient lead-in to allow the industry effect the change. It also requires the processing industry to demonstrate clearly the variations that exist between markets for different cattle types, or to be more precise, the cuts of beef sold from different cattle types.

Factories can argue that they buy cattle from farmers but sell the carcase in individual component parts. However, to rely on this fails to recognise the need to secure farmer buy in and understanding. Anyone can operate a business on a take-it-or-leave-it basis if they are the stronger partner in the relationship.

Variation

If a variation of the USDA cut-out model could be developed whereby sales values on a range of cuts and specification were collected centrally and published in Ireland, farmer understanding or relative market values of different specifications could be demonstrated.

At present, everyone operates on intelligence gathering which is neither consistent nor satisfactory. Relying on traditional reports of the meat markets such as Smithfield in London or Rungis in Paris doesn’t properly reflect the markets of today which are dominated by the large supermarkets, burger chains and food service outlets.

Undoubted there are variations between customers in the price they pay and specification required, but in the absence of a clear and consistent demonstration of these values, understanding among farmers is inadequate.

Sharing of knowledge and information has the potential to deliver a more productive industry. Orderly production can add further to the maximisation of all types of Irish beef. The concept has been well developed in the Hereford and Angus schemes where farmers deliver cattle to factories through their groups in a structured way and to a specification in return for a premium.

Marketing structure

If it is demonstrated that there is only a limited opportunity for heavier cattle at the end of a transition period then there is no reason why a similar marketing structure couldn’t be developed. The bottom line is that beef production is a high-cost but very low-margin business for farmers.

If heavy cattle are demonstrated to be genuinely worth less in the market place, then they are currently holding the price of all cattle back. We need over time to develop a production system that gets Irish beef into the highest value markets.