This is a subscriber-only article
Of the 141 cattle slaughtered from the Irish Farmers Journal Thrive demonstration farm in Cashel, Co Tipperary, last year, 16 animals, or just over 11%, failed to maximise the in-spec 20c/kg bonus payment.
The full 20c/kg in-spec bonus is paid on stock that grade O= or better and have a carcase fat score of between 2+ to 4=.
Failing to hit this specification, there is a 12c/kg bonus for stock grading O- or having a fat score of 4+. Stock grading P for conformation results in no in-spec bonus, while a fat score of 2- or lower and a fat score 5 are also ineligible for any in-spec bonus payment.
Obviously, the cost of falling out of spec reaches far beyond the in-spec bonus payment.
It also means the animal slips down the grid payment: -14c/kg was the average price reduction across the entire batch of cattle ranging from 0c/kg to -36c/kg.
In addition, where breed bonuses are available, stock will also miss out on this payment in the majority of cases. This can be worth up to 35c/kg depending on the breed and time of year you are killing cattle.
The main problem with this is that when purchasing a calf at three weeks old, it is very hard to tell which animal will fail to meet carcase specifications
Combined, the difference between an in-spec and out-of-spec animal could be worth as much as €130 on the average carcase weight from the demo farm. The main problem with this is that when purchasing a calf at three weeks old, it is very hard to tell which animal will fail to meet carcase specifications.
Thrive demo farm
On the demonstration farm, heifers were a bigger culprit than bullocks, with 16% failing to maximise the payment while just 7% of bullocks were penalised.
Looking within this, early-maturing breeds were more likely to fall out of spec compared to late-maturing breeds.
The average grade of the Angus and Hereford heifers was just below an O=, while in terms of carcase fat score the average grade was 4- at an average carcase weight of 263kg at just over 19 months of age at slaughter.
As can be seen, the early-maturing heifers were having to be drafted a month earlier on average compared to the late-maturing types to try to ensure they did not go out of spec for carcase fat score
Compare this to the late-maturing breeds of Limousin and Belgian Blue, they graded just below an R- on average at a carcase fat score of 3+ at an average carcase weight of 283kg at just over 20 months old at slaughter.
As can be seen, the early-maturing heifers were having to be drafted a month earlier on average compared to the late-maturing types to try to ensure they did not go out of spec for carcase fat score. This obviously had an effect on the carcase weight achieved with 20kg in the difference between the two groups.
The reason for failing to hit carcase specification was split equally between conformation and fat score.
Of the heifers that were penalised due to having too high a fat score, they were predominantly 4+ but there also was a 5-. This indicates that drafting a week to 10 days earlier would have overcome the problem.
However, the average carcase weight of these heifers was 263kg at just over 19 months of age. This shows the challenge with this stock type, while we are trying to maximise carcase weight when slaughtering off grass, we are faced with the prospect of going out of spec at relatively light weights.
Genetics of the cow
Looking at the cow type behind these heifers, as they do account for 50% of the genetics, they are all Holstein Friesian cows with an average EBI, beef sub-index figure of -€16 (national average is -€13) and the maintenance figure, which is really a cow mature size figure is €17.20.
The average mature weight of these cows is somewhere around 550kg. It is therefore not surprising that we have heifers going over fat at similar weights
The higher the maintenance figure, the smaller the mature weight of the cow. A maintenance figure of €0 corresponds to a mature cow weight of 640kg.
The average mature weight of these cows is somewhere around 550kg. It is therefore not surprising that we have heifers going over fat at similar weights.
When we look at the economics of the systems, the early-maturing breeds typically come out on top. This is for three main reasons. Firstly, the calves are cheaper to buy compared to late-maturing breeds.
Secondly, the breed bonus payment is a huge factor in the overall economics.
While this is brilliant to have, at an industry level, basing an entire production system around a bonus pricing structure could be problematic in the future. If everyone was producing these breed types and the market was over supplied, would the bonus payment still be offered to producers?
The final reason the early-maturing animals come out on top is due to the fact that they can be slaughtered off grass with a lower overall concentrate input compared to the late-maturing breeds.
One way of overcoming issues with missing out on payment at slaughter is going down the flat price route. At individual farm level, this is fine as it bypasses the problem as long as you know the value of your stock.
While so much can be done using high genetic merit beef sires, with an ever decreasing beef sub-index value dairy cow, this problem is only going to continue.
However, at an industry level, it does not sort the problem and for that reason the demo farm has opted not to go down this route.
With more of the national kill coming from the dairy herd each year, the proportion of this type of stock is going to grow.
We either need a rethink to the pricing system for dairy-beef animals, which is difficult as poorer grading animals struggle to meet high-value retail specifications, or start to address the issues with genetics being used to produce dairy beef. While so much can be done using high genetic merit beef sires, with an ever decreasing beef sub-index value dairy cow, this problem is only going to continue.
SHARING OPTIONS: