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The compensation received by farmers for reactors under the TB eradication scheme has been affected by low beef prices and an increase in dairy cow numbers.
For the first nine months of the year the average compensation paid for a reactor fell by €28 to €1,234. This is as a result of a fall in salvage values paid by factories to farmers for reactors.
The average salvage value fell by €50 to €494/head, its lowest point in the last five years.
Salvage value
The difference between an animal’s market value and its salvage value, known as the gross differential amount (GDA), is paid by the Department. This has risen to its highest point in the last five years at €740/head.
GDA values have increased as a result of Ireland’s expanding dairy herd.
A dairy cow’s market value is linked to its breeding and milk production while the salvage value is typically lower than beef animals.
To date, €13.79m has been paid for 11,176 reactors.
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