Email this page
Print this PageFor more information, please contact the FeedLine on
01278 444829 or email info@molevalleyfarmers.com.
Blade Farming (SW)
by Richard Jones
The majority of cattle sold deadweight in this country are sold on a spot market. When margins are under pressure, as they are at the moment, maximising the potential return is vital. Selling direct to an abattoir on a forward price contract, may not be everyone’s idea of the best way to sell cattle, but the returns being shown from the cattle sold on the ‘Pain and Gain’ price contracts, on offer through Blade Farming, have been showing considerable gains for beef producers. They are using the contracts available on young bulls, continental cross cattle and Holstein/Friesian steers.
The table below shows the comparisons for two batches of cattle, sold recently on the ‘Pain and Gain’ contract, compared to similar batches sold on the ‘spot’ market. The difference in carcase value for the Holstein/Friesian bulls comes from the difference in the base price and the fact that the Blade pricing grid contracts have fewer deductions than the standard grid. It also pays the base price from a lower carcase weight of 255kg. Both groups of cattle came from batches of reared calves that have come through the Blade system, and the cattle have been well fed and managed in order to reach their target slaughter weights at a young age. The bulls showed an increased return of £35.73 per head and the heifers £15.35.
Table comparing difference in values of contracted and non contracted cattle
|
|
Holstein Friesian bulls |
Continental x heifers |
||
|
|
Spot market |
Contracted |
Spot market |
Contracted |
|
Number |
25 |
25 |
16 |
16 |
|
Average age at slaughter |
|
13 months |
|
21 months |
|
Average grade |
-O2 / -O3 |
-O2 / O3 |
R3/RL4 |
R3/RL4 |
|
Average weight (kg) |
276.3kg |
376.3kg |
297.3 |
297.3 |
|
Average price (p/kg dwt) |
234.5p |
252.5p |
256.2p |
266.7p |
|
Average carcase value (£) |
647.97 |
697.65 |
761.81 |
703.02 |
|
Carcase value after charges and comm (£) |
634.97 |
670.70 |
748.81 |
764.16 |
|
Difference in value (£) |
|
+ £35.73 / hd |
|
+ £15.35 / hd |
The quality of the meat from younger cattle is also more desirable for the consumer, who wants to buy tender, succulent meat. In addition, as cattle get older they become less efficient in terms of their food conversion, which erodes the profitability of the system. If the finished cattle standard R4L price is £2.65/kg dwt, and are growing at 1.2kg per day, they must have a daily cost of less than £1.50 per day in order to be economic. The demand for processing meat continues to grow and mince sales in the UK now account for 54% of meat sales. In addition, McDonald’s for example, sell 1.6 million ‘patties’ a day in the UK through their network of 1200 restaurants. SCFF at Langport supply 20% of the English beef which McDonalds use in their beefburgers, and a significant and growing proportion of that meat comes from Blade finishers.
Consequently, the opportunities for bull production are still very good, with the abundant supply of Holstein/Friesian bull calves and feed rations being competitively priced. Trial work by Eblex has proved that top quality weaned calves coming through the Blade system have outperformed their lower grade counterparts, and the Forward Price Contracts available, have increased producers’ returns.
It is absolutely essential that beef producers monitor the feed intake and liveweight gain of their cattle in order to ensure the cattle are performing to target and they are sold at the optimum time. If cattle are weighed and monitored on a regular basis, it is very easy to ensure they reach their growth rate targets stipulated in the Blade contract and producers receive the financial benefits.
www.blade-farming.com
For website enquiries and online orders phone 
