Reviewed ABP grid heeds dairy-beef trend
© Tim Scrivener Revised specifications from a leading processor signal a contraction in the beef sector and an increase in the number of dairy-beef cattle in the UK, say industry commentators.
Red meat processing giant ABP’s revised clean cattle grid includes small 5p/kg bonuses for R+ cattle and has lifted carcass weight limits to 420kg.
The grid will reward the better-bred dairy-cross cattle and heavily penalise outliers, Farmers Weekly understands.
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A statement from ABP said: “The changes are part of a grid review which we undertake periodically to reflect market conditions. All changes are communicated to our farmer suppliers through our livestock portal.”
Farmer reaction to the changes have been largely favourable, although some finishing businesses said they wish they could have been given prior warning to influence their sourcing policies.
Current clean cattle specifications are as follows:
- Base price R+2-, R+2=, R=2- to R-4= and 4+ carcasses are based on U=, U- and R+ grades
- 5p bonuses for R+2+ to R+4=
- Maximum weight lifted to 420kg with a 10p/kg penalty for 420-430kg
- P- carcasses will be penalised at 100p/kg to 160p/kg.
This follows Kepak’s grid changes in December, which also became more accommodating to the better bred and fed dairy-cross cattle, say trade insiders.
Some sources have suggested the weight limit announcement is merely official confirmation of the weight cap being waived in recent months due to tight cattle supplies.
Breathing space
Many finishers sourcing yearling cattle for about £1,600 apiece will welcome the 20kg lift in the weight limit for base prices as “breathing space”, said Neil Shand, National Beef Association chief executive.
He said some of the buying and feeding costs could be recouped with a higher gross price.
“Young calves bought for £1,600 take some clawing back, and the higher weight cap will go some way to do that,” said Mr Shand.
“I think this is a statement from a leading processor that they are having to be creative to secure supply.”
However, liveweight store prices had little correlation with deadweight prime cattle prices at times, he added.
He noted a U-grade bull less than 16 months old could now achieve more than £2,200, which the live ring was achieving and often surpassing for bulls of all ages.