This week’s factory quotes article on Agriland noted that base price for beef cattle was under some level of pressure this week and some processors were quoting as low as €5.15/kg on the grid for heifers and €5.10/kg on the grid for bullocks (steers).
While this is the case, other farmers have been offered a base price of €6.10/kg on the grid for this week, albeit inclusive of the 20c/kg Quality Assurance (QA) premium.
These farmers getting offered the higher rate for their beef produce are organic farmers supplying organically-produced cattle to The Good Herdsman.
As well as getting a price premium, organic farmers have the benefit of knowing up to 12 weeks in advance what they will be paid for their cattle.
The table below outlines the organic base price on offer in €/kg for R grade cattle with the QA premium included within the price:
Week No Price 19 €6.10 20 €6.10 21 €6.10 22 €6.10 23 €6.05 24 €6.00 25 €5.95 26 €5.90
As can be seen from the table above, the organic beef price is set to remain at €6.10/kg for the next four weeks, before declining by 5c/kg for four consecutive weeks.
Beef farmers who are supplying cattle to The Good Herdsmen will be informed of the pricing structure for organic beef in the third quarter of the year in due course, allowing them some time to plan around the price they can expect to receive for their cattle over the coming weeks.
Suitable U grade organic heifers and steers under 36-months-of-age are currently being priced at €6.28/kg, when the grid increase of 18c/kg is added to the current base price of €6.10/kg.
Price deductions are also applied for organic cattle, with carcass weights below 250kg and above 450kg.