Grid review

The Quality Payment System (QPS) grid is to be reviewed by the end of September, under the auspices of the Department of Agriculture, Teagasc and Bord Bia. Meat industry Ireland said the review will be “aimed at strengthening returns to cattle from the suckler herd”.

It is expected, based on previous Teagasc research, that the price differential across grades would be increased. This would see better grading cattle such as U grades receiving a higher premium over the base price.

In-spec criteria

There was an undertaking to broaden the in-spec bonus criteria to increase the number of eligible animals. The 12c/kg quality bonus will be paid on O- grade cattle and 4+ fat scores from this autumn, it was agreed. This could result in up to 200,000 additional cattle – many of them plainer stock – qualifying for the payment.

Also on in-spec criteria, the residency requirement period will be reduced from 70 days on the last farm prior to slaughter down to 60 days.

Price transparency

Bord Bia will develop a beef market price index model. This would be the beef equivalent of the Ornua purchase price index (PPI) for dairy products and would compare the market returns of beef products to a base year price.

The Department of Agriculture has agreed to publish maximum and minimum prices on a national basis.

An independent study of price composition along the supply chain will be commissioned by the Department of Agriculture.

It was agreed that an independent groceries regulator is needed.

The EU Directive on Unfair Trading Practices will be transposed into Irish law.

Live weighing

Factories will provide a live weighing service in the lairage, where requested by farmers. This will be subject to a “nominal charge” to farmers. When these scales are to be introduced will be up to each factory and based on their operational and logistial considerations.

Beef carcases

Farmers will be given four months’ advance notification of any changes to carcase weight limits. A system will be developed to provide farmers with carcase images of their animals, should they request them.

Grading

Farmers whose animals are manually graded will be able to appeal the grade to Department of Agriculture personnel. This will only affect a small number of cattle killed, as the majority of plants machine-grade cattle. An expert report on new technology in mechanical carcase classification will be considered by the Minister for Agriculture and published in the near future.

Suckler supports

Stakeholders agreed that additional funding for targeted direct support for suckler cows is required as a priority.

Insurance

Farmers can opt out of insurance charges at factory. A source of huge irritation to farmers, insurance fees vary from factory to factory but are typically up to €5/animal.

Promotion of beef

The Department of Agriculture committed to promotional initiatives for the beef sector and Bord Bia is to investigate market opportunities for Irish grass-fed bull beef. The two bodies will also work on a protected geographical indicator (PGI) for Irish grass-fed beef and a brand for Irish suckler beef.

Verbal contracts

Where an agreement is finalised between the factory and a farmer on the terms of sale (when the sale will take place, any price agreed, etc), factories will confirm the agreement in writing, where the farmer requests it.