The current in-spec bonus is 12c/kg.

This is paid on any cattle sold from quality-assured (QA) farms meeting a minimum residency period of 70 days. This can be made up on more than one farm, as long as the QA period is unbroken, ie 40 days on one QA farm and 30 days on another QA farm.

The maximum number of movements is dictated at local factory level but is generally four movements or less.

The payment of 12c/kg is made on steers, heifers and young bulls under 16 months. At an average carcase weight of 330kg, the payment is worth €39.60/animal.

Proposed changes

The proposed changes outlined in the agreement document, issued by Minister for Agriculture Michael Creed on Sunday, include increasing the in-spec bonus payment to €0.20/kg.

This would mean at an average carcase weight of 330kg, the average in-spec bonus payment increases by €26 to €66/head. Weight will obviously be the key determinant of the level of payment and suckler-bred progeny will stand to gain the most as these animals will kill out with the heaviest carcases.

The average weight for heifers killed in 2017 was 311.7kg. On that average heifer, the new in-spec bonus payment would rise by €24.94, from €37.40 to €62.34.

Other changes

The introduction of a new in-spec bonus of €0.12/kg for steers and heifers under 30 months in the categories of grade 0- and fat score 4+ will widen the net for stock that are eligible for the current standard €0.12/kg payment. The inclusion of the O- grade will stand to benefit dairy stock more than suckler stock. The inclusion of 4+ animals will benefit suckler-bred stock, especially heifers that can slip into 4+ on occasions.

On an average carcase weight of 330kg, this will see an increase in bonus payment of €39.60. The in-spec 70-day residency requirement is proposed to be reduced to 60 days, which will also help producers.