Farmers who join the Twenty20 Beef Club scheme in coming weeks will get a price commitment for slaughter time, two years ahead, made up of premiums to be added to prevailing market price.
In farmer language, these premiums would have totalled €100/head on Angus and Hereford animals and up to €120/head on Friesians, on average, in 2017 and 2018 based on market prices across those two years.
These were key messages for the 200 attentive dairy and beef farmers who attended the first information meeting on the joint venture by its operators Glanbia Ireland and Kepak, in Kilkenny.
Questions
The presentations were short and allowed for numerous questions from farmers which only stopped when the meeting was brought to a close. If the positive reaction and interest shown at this meeting is any indicator, the target of 6,000 calves being registered in 2019 could be met, despite spring calving now entering the final stages.
Most of the questions came from drystock farmers. One asked how calf buyers would be matched with sellers.
“We will provide a list of sellers to buyers,” Glanbia’s Martin Ryan said. “We won’t get involved in setting price or moving calves. You can buy calves from a number of different sellers.”
Glanbia will not vet all calves, he told another farmer. Farmers will be screened when applying to join the club and also 10% of calves will have to be genotyped.
Base price
Another finisher asked why discussion of base price centred on R-R= carcases, saying “90% of the stock will be O grades”. It is because it is the standard base price quoted in the Irish Farmers Journal and elsewhere, Kepak’s Mick O’Dowd explained.
Martin Ryan said that 50% of Angus stock would make an R-grade, 60% of Hereford and 20-25% of Friesians.
More than once, farmers asked for and got confirmation that their own suckler stock would qualify for premiums and bonuses once they purchased and finished 25 dairy stock. There is no ceiling on the number of these suckler stock that can qualify for payments.
Points to note
The advance cashflow payments for finishers were likened to the monthly milk cheque dairy farmers get. They will allow farmers hold and finish animals they would otherwise have to sell for day to day expenses. Glanbia’s Pat O’Keeffe said they were happy with how Finance Ireland was treating farmers taking part in its Flexmilk scheme – it will operate the advance payment package.Glanbia will advise finishers how to stay within weight range of 280-360kg for both male and female animals.Price structure is reliant on having beef every week for retail customers, Kepak’s Mick O’Dowd said Autumn born calves will help as will the seasonality bonuses.Retailers value that farmers buy all inputs from the one supplier, Glanbia, and are prepared to give a premium for the beef.Glanbia has to be competitive on inputs, said Martin Ryan, otherwise farmers can simply leave the club.
Farmers who join the Twenty20 Beef Club scheme in coming weeks will get a price commitment for slaughter time, two years ahead, made up of premiums to be added to prevailing market price.
In farmer language, these premiums would have totalled €100/head on Angus and Hereford animals and up to €120/head on Friesians, on average, in 2017 and 2018 based on market prices across those two years.
These were key messages for the 200 attentive dairy and beef farmers who attended the first information meeting on the joint venture by its operators Glanbia Ireland and Kepak, in Kilkenny.
Questions
The presentations were short and allowed for numerous questions from farmers which only stopped when the meeting was brought to a close. If the positive reaction and interest shown at this meeting is any indicator, the target of 6,000 calves being registered in 2019 could be met, despite spring calving now entering the final stages.
Most of the questions came from drystock farmers. One asked how calf buyers would be matched with sellers.
“We will provide a list of sellers to buyers,” Glanbia’s Martin Ryan said. “We won’t get involved in setting price or moving calves. You can buy calves from a number of different sellers.”
Glanbia will not vet all calves, he told another farmer. Farmers will be screened when applying to join the club and also 10% of calves will have to be genotyped.
Base price
Another finisher asked why discussion of base price centred on R-R= carcases, saying “90% of the stock will be O grades”. It is because it is the standard base price quoted in the Irish Farmers Journal and elsewhere, Kepak’s Mick O’Dowd explained.
Martin Ryan said that 50% of Angus stock would make an R-grade, 60% of Hereford and 20-25% of Friesians.
More than once, farmers asked for and got confirmation that their own suckler stock would qualify for premiums and bonuses once they purchased and finished 25 dairy stock. There is no ceiling on the number of these suckler stock that can qualify for payments.
Points to note
The advance cashflow payments for finishers were likened to the monthly milk cheque dairy farmers get. They will allow farmers hold and finish animals they would otherwise have to sell for day to day expenses. Glanbia’s Pat O’Keeffe said they were happy with how Finance Ireland was treating farmers taking part in its Flexmilk scheme – it will operate the advance payment package.Glanbia will advise finishers how to stay within weight range of 280-360kg for both male and female animals.Price structure is reliant on having beef every week for retail customers, Kepak’s Mick O’Dowd said Autumn born calves will help as will the seasonality bonuses.Retailers value that farmers buy all inputs from the one supplier, Glanbia, and are prepared to give a premium for the beef.Glanbia has to be competitive on inputs, said Martin Ryan, otherwise farmers can simply leave the club. 
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