Over 100 farmers attended Tuesday’s Irish Grassland Association (IGA) sheep farm walk on the farm of Ned Morrissey, Dunhill, Co Waterford. Ned’s farming system has been covered in detail in recent months.

Two aspects of the day which attracted keen interest were a presentation by Longford sheep and beef farmer Kevin Farrell, an IGA committee member, on the benefits of producer and purchasing groups and also a presentation by Teagasc sheep specialist Frank Hynes on the use of faecal egg counts (FEC) and interpreting the STAP faecal test as an aid for worm control.

Frank’s presentation and advice on worm control will be covered in next week’s paper.

Longford group

The Longford Lamb Producer Group was set up in the early 1990s by a small group of local farmers with common goals – selling lambs within a group to achieve a better price and also to find a more convenient means for members to market and trade their lambs.

The group has grown to a steady membership of approximately 60. Kevin said that a significant factor determining what the group delivers is the commitment group members show – “you get back what you are willing to put in”.

He said that one of the most important aspects of a successful group is having a solid structure. The group has a chairperson, secretary, treasurer and a lamb co-ordinator, as well as having a schedule of group meetings and an annual general meeting. Each member pays an annual membership fee and abides by written rules.

“Each group member knows at the start of the year the conditions set out and the group deal negotiated with a factory. The group will have its share of ups and downs, but when everyone knows exactly what is required of them with written rules, it makes the group easier to run,” said Kevin.

He admitted that pricing issues are a big challenge facing the group, along with a commitment every week for a group member to accompany lambs to the factory.

Payment arrangements, and in particular the payment arrangement operated by most producer groups of a base plus bonus, based on quotes in media publications, attracted high levels of discussion from producer group members present.

Those who commented pointed to recurring pricing challenges from plants keeping quotes at a lower level than the general market price, with the result of returns in some weeks being below prices secured by independent sellers.

This was said to generate conflict and unrest within a group, with members feeling they were not being rewarded for delivering a high- quality product to tight producer specifications.

Kevin said that this had also been a challenge for the group in the past, but that it had overcome it in the last two years by negotiating a base price directly with the factory procurement manager on a weekly basis.

He said this ensured the producer group was at least matching market prices, but in the majority of weeks returning a bonus to its members.

Producer group benefits

He said that pricing issues can often take from the range of benefits a group offers. From a quality perspective, lambs produced better meet market specifications, which ultimately benefit the quality of lamb delivered to consumers.

This has been achieved within the group by holding information evenings, focusing on marketing of lambs and aspects such as selecting lambs for slaughter, optimum carcase weights, fat cover, etc.

Kevin said that a financial bonus which consistently rewards quality is a major aspect in helping to entice members to produce to certain specifications.

“We have developed a strong working relationship between the group and the factory. There has to be benefits for both sides, with members rewarded for delivering a quality product and factories guaranteed that they have a consistent, high-quality product to work with.”

Another big advantage of group marketing is that lambs are processed as they come on stream, regardless of numbers in the market at peak production periods.

Farmers also know in advance the days of killing and can make arrangements for this. The group has a central collection point where members deliver their lambs, with timing of collection organised to suit part-time operators.

“I can be down at 6am, have my lambs loaded by 6.30am and be back to the house before 7am. This suits most members in the group as many have off-farm employment. For this to work best, a rota is completed in advance for producers to accompany lambs to the factory.”

Beef group alternative

An alternative means of marketing produce was demonstrated by the Longford Beef Producer Group, which many sheep members are also part of. The workings of the 36-member beef group are similar to those discussed above, with the big difference here that cattle are traded to three factories, as opposed to one for lamb.

Members ring and book their cattle in with the group secretary on a Thursday. Two co-ordinators ring the three factories on Friday morning with the number of cattle available and information, such as the type of animals, predicted carcase weight, age, fat cover, etc, with each plant then quoting for the stock.

Kevin said that each plant only has one opportunity to quote a price and any aspects that may influence price, with the group then deciding on the optimum quote to suit the type of cattle on any particular week.

The advantage of working with three plants is that particular plants may be more active for steers, heifers, bulls or cows, with the optimum deal negotiated weekly.

Purchasing group

While the two groups are working well for Kevin, he feels that the group that is possibly delivering the best benefit is the purchasing group operated across the lamb and beef group.

The group is made up of sub-groups which have responsibility for different inputs or services. Like the lamb and beef groups, deals are negotiated that best meet the needs of all members.

The group meets eight times annually, with each group member required to attend at least four meetings and pay an annual membership fee.

A yellow card system is employed, whereby each member is sanctioned for not adhering to written rules the group has agreed on.

Kevin said that confidentiality is a key aspect of the purchasing group to allow input and service providers negotiate with confidence.

In his conclusion, Kevin said that as well as the sharing of new ideas and relationship-building with factories and farm suppliers, an aspect of the group that is often forgotten is that it provides a social setting for farmers to meet.

He said that to really maximise the benefits of the group, both business and social aspects should be included in order to provide a platform to interact on an informal basis.