Table 1: New in-spec payment changes

Green box: An in-spec payment of €0.20 will be made on heifers and steers grading within the green shaded area on the existing quality-based pricing grid. To obtain this bonus, steers and heifers under 30 months also need to be from a quality assured (QA) holding with a residency period of at least 60 days on the last farm. The residency period still remains at 70 days on a QA farm, but 10 days of this may have been spent on another QA farm. Animals must have also had a maximum of four farm residencies to obtain the bonus.

Red box: An in-spec bonus payment of €0.12 will be paid on cattle grading 0 - or 4 = meeting all other in-spec criteria on movements, residency and QA status.

Black line: Steers and heifers grading an O= to U+ on confirmation or 2+ to 4= on fat (green shaded area) within the 30- to 36-month age bracket will now qualify for an €0.08 bonus once they meet all other in-spec criteria on residency, movements and QA status.

Other bonuses like breed bonuses, producer group bonuses and contract bonuses will be agreed between individual producer groups, farmers and factories.

There are currently no weight restrictions on the bonus payment and if factories wish to impose weight restrictions, they must give four months notice before doing so.

The above in-spec bonus is on top of the QPS bonus payments or deductions which are made depending on the grade and fat score of the animal slaughtered.

It’s important to note that under-16-month bulls are not included in the new agreement and bulls slaughtered on the QPS grid will continue to be paid the €0.12 in-spec bonus.

Example 1

At a base price of €3.55/kg, a 400kg under-30-month Charolais steer grading U= 3+ meeting all the in-spec criteria on movements, residency and QA status will be paid a price of €3.93 calculated as follows:

Base price: €3.55/kg.

In-spec payment: €0.20/kg.

QPS grid payment: €0.18/kg.

Total payment: €3.93/kg.

Example 2

At a base price of €3.60/kg, a 330kg under-30-month Hereford-cross heifer grading R+ 4-, in the Hereford prime bracket and meeting all other in-spec criteria on movements, residency and QA status will be paid a price of €3.93 calculated as follows:

Base price: €3.55/kg.

In-spec payment: €0.20/kg.

Hereford Prime payment: €0.12/kg.

QPS grid payment: €0.06/kg.

Total payment: €3.93/kg.

Example 3

At a base price of €3.50/kg, a 400kg 32-month-old Limousin steer grading R= 4- and meeting all other in-spec criteria on movements, residency and QA status will be paid a price of €3.58/kg calculated as follows:

Base price: €3.50/kg.

QPS grid payment: €0.00/kg.

In-spec payment: €0.08/kg.

Total payment: €3.58/kg.

Example 4

At a base price of €3.50/kg, a 380kg 28-month-old Simmental steer grading O-4+ meeting all other in-spec criteria on movements, residency and QA status will be paid a price of €3.32/kg calculated as follows:

Base price: €3.50/kg.

In-spec payment: €0.12/kg.

QPS grid payment: -€0.30/kg.

Total payment: €3.32/kg.