Beef finishers holding back on cattle to avail of payments under the new Beef Carbon Reduction Scheme (BCRS) in 2024, could end up disrupting the local market for beef, sources in the trade have warned. The new beef scheme is due to start in early January, with the payment per head expected to be around the £80 mark. Only NI born-and-reared steers, heifers and young bulls are eligible, and must be slaughtered under 30 months of age in the first year of the scheme. The money will be paid out on all eligible animals as a lump sum, likely in the spring of 2025.
The Irish Farmers Journal understands that representatives from beef processors have suggested to DAERA that there should be a phased introduction of the new payment, to help ensure a steady supply of beef over the coming months. In particular, oversupply of cattle in January and February could have a negative impact, as it coincides with a period when sales can be sluggish.
Rather than start with £80 in January 2024, processors would prefer starting on a much lower rate and gradually increasing the payment through spring.
However, it is understood that the Ulster Farmers’ Union is not on board with this proposal.
Other potential changes put to DAERA include that a minimum age of eight months should apply for all cattle, that young bulls must be killed by 16 months - and that there is some form of retention period to ensure money goes to the person primarily involved in finishing the animal.
Adapting
While it is likely to be a few weeks before final details around the scheme are confirmed, it would seem that beef finishers are already adapting their plans to avail of the new payment.
In recent weeks, mart managers indicate strong demand for stores best suited to finishing next spring.
To safeguard against potential shortages in the run up to Christmas, cattle agents have become extremely active in sourcing animals for factory-owned feedlots.
Reports also indicate deals are being struck with specialist finishers to provide bed-and-breakfast facilities for factory-owned cattle, with these animals then used to plug any shortfall in throughput later this year.
In addition, there has been a surge in cattle imports from Republic of Ireland in the past fortnight, with agents working for local abattoirs ringside at marts as far south as Cork and Kerry.
Price rise
With demand for store cattle intensifying, NI mart prices for stores have increased by 10p to 20p/kg in recent weeks.
Short-keep cattle are now making 280p to 300p/kg for U-grading animals, which will require factory prices back at around the 500p/kg mark later this year, if any margin is to be made.
The beef trade is holding firm this week, with factory quotes unchanged at 446p/kg for U-3 grading animals, although price deals for in-spec animals range from 460p to 466p/kg, depending on numbers. Cows are an improved trade, with good-quality suckler types making 360p to 365p/kg.