 Beef
finishers demand high performance cattle in store ring
08/02/05
Store cattle producers should be paying more attention to what's
going on in the marketplace and start responding now if they're
to maximize output and subsequent income under the new regime,
says British Charolais Cattle Society chairman, Murray Lyle.
"Suckler men haven't got time to wait a couple of years to
see how trade pans out before they decide how to adjust their businesses
and use their SFP," he says. "Strong trends are already
emerging in the store ring. Finishers are seeking cattle with that
potential high performance, and as in any other business, store
cattle producers must deliver what the customer wants."
UA auctioneer, Alex Fleming comments: "Previously, substantial
subsidy payments ensured a trade for lower quality stock, however
it's obvious this month that buyers are now looking for high performance
cattle, those that will grow fast to achieve a good weight, and
Charolais crosses happen to fit the bill.
"For example, for the second consecutive sale at Huntly this
year, the gap in average prices widened between the higher performing
and lower performing store cattle, and I firmly believe that trend
will continue," he says. "Take the 500 head of cattle
coming under the hammer on Thursday week (20 Jan), 120 Charolais
cross steers sold to average 138p/kg, a significant 9p/kg differential
over 60 of their nearest competitors, while in the heifer ring,
90 Charolais crosses sold to average 126p/kg, 11p/kg more than
80 of their nearest competitors. In addition, the Charolais crosses
were on average the youngest offered, therefore when weight for
age is taken in to account the price differential was even more
considerable and returned to the producer as a substantial premium."
Mr Lyle adds that suckled calf rearers should also dismiss some
of the current advice being offered and regard their SFP as part
of total farm income in the short term. "Forget the idea of
throwing the payment at a retirement scheme or off farm investment.
That money should be used to reinvest in the farm, in buildings,
equipment or high quality high genetic merit livestock, to enable
output to be improved.
"Furthermore, once we get the go ahead to reintroduce to
the food chain animals that are over 30 months, suckler men should
cull those older cows, realise their value and restock with more
efficient replacements to suit the future market," he says.
"While I believe the majority of beef farmers will stay in
business, they'll soon find there's a limit as to how much they
can cut back their costs without making compromises or adopting
an extensive regime. The profitable way forward will be to maximize
their livestock's performance and overall output."
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