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A number of farmers have highlighted just how far behind actual prices paid the base quotes reported by the Livestock and Meat Commission (LMC) have fallen.
In recent weeks, the LMC text message and bulletin has put base quotes in the range of 362p/kg to 380p/kg for U-3 grades.
In the same period, the average price paid for U3 cattle has consistently been above 390p/kg for steers and heifers, and peaked at 394.4p/kg.
To be fair to the LMC, it consistently makes the point that the base quote is only a starting point for negotiation, and many farmers also understand that the data indicates the direction of travel for quotes, not the actual prices on offer.
However, farmers point out that these base quotes are used as the starting price for many of the traditional breed schemes, so keeping the base quotes down is a means of buying these cattle cheaper.
“The LMC rings the factories to ask what they are quoting this week, yet when it comes to pricing traditional breeds, the factories tell farmers that they are using the official quotes from the LMC. It is a nonsense. The LMC should get farmers to ring up and ask what they are giving for cattle, and quote that figure instead,” suggested one local farmer.
Another said that it has got to a point where he gets more for some of his plainer Angus cattle if he is able to avoid the Angus kill day at his local factory. There has also been a waiting list at some factories to get Angus cattle killed, which has added to frustrations.
Of the various traditional breed schemes operating locally, not all work off the LMC base quote. The Tesco Angus scheme co-ordinated by Aberdeen Angus Quality Beef (AAQB) uses the R4L price paid by Foyle Food Group at its factories in England as the base.
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