……….and CPAS makes matters worse
A rise in the number of entire males reared after the end of the calf processing aid scheme could add unwanted pressure to young bull values.
Although schemes offering producers a guaranteed price for plainer dairy-bred bulls destined for the processing sector were poorly supported after the schemes demise last July, estimates suggest a third are being reared on-farm.
The Meat & Livestock Commission expects the first of these cattle to be finished in July and August.
Numbers are hazy, although these are being reviewed as data on cattle passport applications becomes available.
However, officials believe many will have been kept on intensive rations as bulls – the only system that offered a reasonable margin with a single subsidy claim.
MLC estimates slaughter figures will rise between July-Sept by 4.8% over last years total of 532,000 head. A large part of the rise accounts for the demise of the CPAS.
That suggestion is being backed up by on-farm observations. According to Adrian Page of Allied Livestock & Marketing – which took over the Anglo Beef Producers/Dalgety scheme – yards are stocked. Many finishers are hedging their bets and hoping the spot market will provide an outlet.
“We would encourage producers to sign up. There has been a distrust of contracts, but those with 12-week-old calves should look at what is on offer. Older stock cannot be included as (ABP) states calves must be on-farm for 30 weeks before slaughter,” says Mr Page.
Producers may still find processors willing to agree prices for older stock to secure numbers for processing.
Current offers are looking at about 140p/kg deadweight for a minimum carcass weight of 240kg.