Earlier this week, Agriculture Minister Michelle O’Neill officially launched the Blade Farming model in NI. The principle behind the model is that calf suppliers, rearers and finishers all receive a margin, but in return must follow strict protocols, meet targets and supply on a contract to an agreed specification. “In essence, we are asking farmers to give up a bit of their independence” said Arthur Callaghan, the co-ordinator for Blade Farming in NI.
It is a similar principle to that operated so successfully in NI by Moy Park. While some might question the financial commitment and margins available, there is no doubt that the Moy Park model has helped to provide a sustainable income on many family farms.
But, to date, integration in the beef sector in NI has not really happened. However, the beef market is now more volatile than in the past and the fluctuations in price seen in recent months are unsustainable for many finishing operations. One way to help manage that volatility across the sectors is for more integration in the supply chain.
The Blade Farming model works by paying a fixed price for cattle reared to an agreed protocol. The end price is known in advance and designed to leave a margin for both the rearer and finisher. “A margin in excess of £100 per head to be shared between the rearer and finisher is readily achievable should protocols be adhered to and on-farm efficiency be maximised,” insists Arthur Callaghan.
“Every input cost is included, from finance, utilities, vet and medicines, mortality and waste, feed and forage, transport, etc. We review the costs every three months and set the end price accordingly,” he said.
The key to the model is that it will actually work in practice and deliver the promised margin when the advice is followed. That is where the experience of Blade Farming comes in. Although it is new in NI, the model has been working in Britain since 2001, with protocols developed across a range of finishing systems.
“Producers who sign up get a health plan and management guide. It covers every system, including where cattle are reared and finished indoors on different diets, to systems utilising grazed grass,” Arthur explains. Farmers must follow the agreed management protocol for the system they are using. The most efficient, for example, an excellent manager of grass, can potentially realise higher margins.
As well as following a management guide, producers must also meet production targets at various stages. There are three categories of farmers involved:
Calf suppliers: To be accepted into the scheme, young calves must be healthy and thriving, ideally tissue tagged as part of the bovine viral diarrhoea (BVD) eradication scheme and a minimum of 45kg at 14 days.It is crucial that calves receive adequate colostrum within the first six hours of life. As part of the deal with the supplier, Blade Farming reserves the right to check the immune status of calves at two to four days of age. This can be done using a Zinc Sulphate Turbidity Test (ZST) on a blood sample. Ideally, calves should have a ZST level greater than 20g/litre to ensure optimum health and survival. For those who supply calves, a premium is available over calf export price, as well as a reliable outlet for animals.
Calf rearers: Calves must be a minimum of 100kg at 14 weeks, with a bonus paid for calves that are above 120kg. Rearers must source calves directly off farm – no calves can be bought in marts. They are required to monitor performance throughout the rearing phase and to vaccinate against pneumonia and ringworm. A rearer would be expected to rear four batches of calves per year – that works out at four 12-week periods over a year, with a week between each batch to clean out housing. Potentially, a dairy farmer has the option of selling calves at two weeks, or taking them through the rearing phase and selling at 14 weeks.Finishers: The finisher pays the rearer a price for the calf decided by Blade Farming. The finished beef price is known in advance of slaughter, with normal deductions applying down the grid. If protocols are followed, black and white bulls should be finished by 12 to 14 months at around 270kg to 280kg carcase. There are also protocols in place for Continental crosses, as well as Angus and Hereford calves, which are finished as steers and heifers.With the base price set beforehand, there could be times of the year when the price paid for calves finished through the Blade system are either above or below the prevailing market price at the time. That is something that finishers must accept when they sign up to the scheme.
There is no upper or lower limit on numbers for either rearers or finishers, although logistically it is more difficult to achieve efficiencies with small batches of calves.
The main focus is getting a supply of calves in place and also rearers on board.
“We would like to hear from people with a genuine interest – dairy farmers with a future supply of calves, and, also, calf rearers. Ideally, they will have experience of working with young calves.
‘‘Perhaps it could supplement other aspects of your farming business,” said Arthur.
One farmer already working with Blade Farming in NI is John Meade, farm manager, Ballyedmond Castle Farms Ltd, who is using existing housing to intensively finish dairy bred bulls.
He said: “The simplicity of an intensive system increases output per unit of labour and the security of a cost of production model with a sustainable margin per head left Blade NI an attractive proposition for our business.”
Anyone interested in the model should contact ABP. They will then be visited by Arthur Callaghan to see if Blade Farming can work for both parties.
Currently, there are around 20,000 cattle on the ground through the Blade Farming system in Britain.Blade Farming is based in Somerset, with finished cattle supplied to a number of ABP sites across Britain.The Blade Farming model used in Britain is slightly different to that being operated in NI. Here, the farmers will own the cattle at each of the various stages and will be expected to take an active role in sourcing replacement animals (under the guidance of Blade Farming NI).
However, in Britain, it is Blade Farming who source and own the calves, and then use a network of rearers to take the calves to 14 weeks. Each rearer is paid a management fee.
The calves are then sold to finishers, who operate as a franchise business for Blade Farming. They work off a fixed price contract to supply ABP, but must pay a franchise fee when cattle are slaughtered.
The decision not to apply the same model in NI means that farmers here will retain ownership of the calves, which is an obvious incentive to ensure performance is kept to target.
There is also a different farming structure in NI, with a much more intensive livestock sector than in Britain. “Often, calf rearers source calves from their neighbouring dairy farmers. They do not need us to get closely involved in that process,” suggested Arthur Callaghan.
He has spent time looking at how the system operates in Britain where, in many cases, it is arable farmers who finish cattle.
“They often have spare livestock housing, and they also appreciate the value of the resultant farmyard manure. A recent study showed that a 16-month bull leaves behind £80 worth of farmyard manure, which is valuable in a crop-growing enterprise. Perhaps it is something that arable farmers might consider here,” he said.
Earlier this week, Agriculture Minister Michelle O’Neill officially launched the Blade Farming model in NI. The principle behind the model is that calf suppliers, rearers and finishers all receive a margin, but in return must follow strict protocols, meet targets and supply on a contract to an agreed specification. “In essence, we are asking farmers to give up a bit of their independence” said Arthur Callaghan, the co-ordinator for Blade Farming in NI.
It is a similar principle to that operated so successfully in NI by Moy Park. While some might question the financial commitment and margins available, there is no doubt that the Moy Park model has helped to provide a sustainable income on many family farms.
But, to date, integration in the beef sector in NI has not really happened. However, the beef market is now more volatile than in the past and the fluctuations in price seen in recent months are unsustainable for many finishing operations. One way to help manage that volatility across the sectors is for more integration in the supply chain.
The Blade Farming model works by paying a fixed price for cattle reared to an agreed protocol. The end price is known in advance and designed to leave a margin for both the rearer and finisher. “A margin in excess of £100 per head to be shared between the rearer and finisher is readily achievable should protocols be adhered to and on-farm efficiency be maximised,” insists Arthur Callaghan.
“Every input cost is included, from finance, utilities, vet and medicines, mortality and waste, feed and forage, transport, etc. We review the costs every three months and set the end price accordingly,” he said.
The key to the model is that it will actually work in practice and deliver the promised margin when the advice is followed. That is where the experience of Blade Farming comes in. Although it is new in NI, the model has been working in Britain since 2001, with protocols developed across a range of finishing systems.
“Producers who sign up get a health plan and management guide. It covers every system, including where cattle are reared and finished indoors on different diets, to systems utilising grazed grass,” Arthur explains. Farmers must follow the agreed management protocol for the system they are using. The most efficient, for example, an excellent manager of grass, can potentially realise higher margins.
As well as following a management guide, producers must also meet production targets at various stages. There are three categories of farmers involved:
Calf suppliers: To be accepted into the scheme, young calves must be healthy and thriving, ideally tissue tagged as part of the bovine viral diarrhoea (BVD) eradication scheme and a minimum of 45kg at 14 days.It is crucial that calves receive adequate colostrum within the first six hours of life. As part of the deal with the supplier, Blade Farming reserves the right to check the immune status of calves at two to four days of age. This can be done using a Zinc Sulphate Turbidity Test (ZST) on a blood sample. Ideally, calves should have a ZST level greater than 20g/litre to ensure optimum health and survival. For those who supply calves, a premium is available over calf export price, as well as a reliable outlet for animals.
Calf rearers: Calves must be a minimum of 100kg at 14 weeks, with a bonus paid for calves that are above 120kg. Rearers must source calves directly off farm – no calves can be bought in marts. They are required to monitor performance throughout the rearing phase and to vaccinate against pneumonia and ringworm. A rearer would be expected to rear four batches of calves per year – that works out at four 12-week periods over a year, with a week between each batch to clean out housing. Potentially, a dairy farmer has the option of selling calves at two weeks, or taking them through the rearing phase and selling at 14 weeks.Finishers: The finisher pays the rearer a price for the calf decided by Blade Farming. The finished beef price is known in advance of slaughter, with normal deductions applying down the grid. If protocols are followed, black and white bulls should be finished by 12 to 14 months at around 270kg to 280kg carcase. There are also protocols in place for Continental crosses, as well as Angus and Hereford calves, which are finished as steers and heifers.With the base price set beforehand, there could be times of the year when the price paid for calves finished through the Blade system are either above or below the prevailing market price at the time. That is something that finishers must accept when they sign up to the scheme.
There is no upper or lower limit on numbers for either rearers or finishers, although logistically it is more difficult to achieve efficiencies with small batches of calves.
The main focus is getting a supply of calves in place and also rearers on board.
“We would like to hear from people with a genuine interest – dairy farmers with a future supply of calves, and, also, calf rearers. Ideally, they will have experience of working with young calves.
‘‘Perhaps it could supplement other aspects of your farming business,” said Arthur.
One farmer already working with Blade Farming in NI is John Meade, farm manager, Ballyedmond Castle Farms Ltd, who is using existing housing to intensively finish dairy bred bulls.
He said: “The simplicity of an intensive system increases output per unit of labour and the security of a cost of production model with a sustainable margin per head left Blade NI an attractive proposition for our business.”
Anyone interested in the model should contact ABP. They will then be visited by Arthur Callaghan to see if Blade Farming can work for both parties.
Currently, there are around 20,000 cattle on the ground through the Blade Farming system in Britain.Blade Farming is based in Somerset, with finished cattle supplied to a number of ABP sites across Britain.The Blade Farming model used in Britain is slightly different to that being operated in NI. Here, the farmers will own the cattle at each of the various stages and will be expected to take an active role in sourcing replacement animals (under the guidance of Blade Farming NI).
However, in Britain, it is Blade Farming who source and own the calves, and then use a network of rearers to take the calves to 14 weeks. Each rearer is paid a management fee.
The calves are then sold to finishers, who operate as a franchise business for Blade Farming. They work off a fixed price contract to supply ABP, but must pay a franchise fee when cattle are slaughtered.
The decision not to apply the same model in NI means that farmers here will retain ownership of the calves, which is an obvious incentive to ensure performance is kept to target.
There is also a different farming structure in NI, with a much more intensive livestock sector than in Britain. “Often, calf rearers source calves from their neighbouring dairy farmers. They do not need us to get closely involved in that process,” suggested Arthur Callaghan.
He has spent time looking at how the system operates in Britain where, in many cases, it is arable farmers who finish cattle.
“They often have spare livestock housing, and they also appreciate the value of the resultant farmyard manure. A recent study showed that a 16-month bull leaves behind £80 worth of farmyard manure, which is valuable in a crop-growing enterprise. Perhaps it is something that arable farmers might consider here,” he said.
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