Glanbia/ Kepak calf to beef

Mac Taylor

Been reading about the above, I can only think that this is a complete and utter load of tripe. Buy all your inputs from glabia, another way of getting rid of the independent competition, closed loop for full tracibility, do we not currently claim we have full tracibility. Meet this and that criteria, why don’t they just hire the farmer as an employee...oh but that would mean no free Labour, anyway rant over:mad:

Bass Reeves

It's dressed up as different but the premium is not worth much. Unless beef markets collapse it is 15c/kg or about 45 euro on a 300kg carcass. It might be an advantage if you had a load of P+/O- grading friesian as you would get the protocol bonus as well which is 12c/kg but for how long they woll allow these cattle to access the protocol bonus is questionable. the extra costs will swallow all of the bonus IMO. Unless the bonus increases I cannot see them hitting 50k cattle in 5 years time

alps

Bass Reeves wrote: »

It's dressed up as different but the premium is not worth much. Unless beef markets collapse it is 15c/kg or about 45 euro on a 300kg carcass. It might be an advantage if you had a load of P+/O- grading friesian as you would get the protocol bonus as well which is 12c/kg but for how long they woll allow these cattle to access the protocol bonus is questionable. the extra costs will swallow all of the bonus IMO. Unless the bonus increases I cannot see them hitting 50k cattle in 5 years time

Begs the question for me, how can they pay a bonus? Is this meat different to what is being produced now, that it will return a premium from the market?

If they can pay extra for this meat, how can they not pay it now?

Base price

No Jersey or stock from Jersey crosses allowed.
https://www.independent.ie/business/farming/beef/kepakglanbia-to-genotype-10pc-of-calftobeef-animals-in-bid-to-exclude-jersey-stock-37993993.html?fbclid=IwAR3eNPvUfbPIO6M22Yf6J14zjWSg9cHlTVKXTq9s7FA8_HzI6UrfzPQaR2Y

blue5000

Base price wrote: »

No Jersey or stock from Jersey crosses allowed.
https://www.independent.ie/business/farming/beef/kepakglanbia-to-genotype-10pc-of-calftobeef-animals-in-bid-to-exclude-jersey-stock-37993993.html?fbclid=IwAR3eNPvUfbPIO6M22Yf6J14zjWSg9cHlTVKXTq9s7FA8_HzI6UrfzPQaR2Y

"At an average market base price of €4.00/kg, a Twenty20 Beef Club Angus steer slaughtered in April 2021 will qualify for a net price of €4.43/kg; at a market price of €3.75/kg, the same animal would earn €4.28/kg," the programme sponsors claimed.

So 43 cents a kg bonus incl the angus premium. It looks like a win win situation for Kepak and Glanbia, security of supply for Kepak and a guaranteed market for cereal bi-products for Glanbia, with the farmer carrying the can as usual. Was anybody on here involved with the KK kclub with Keenans and Kepak? How does this compare?

Basically it's letting farmers be feedlot managers on their own farms. I can see farmers getting a phone call at 5am on a Monday morning to have 20 bullocks into their nearest kepak plant by 8am or else no bonus.

wrangler

blue5000 wrote: »

"At an average market base price of €4.00/kg, a Twenty20 Beef Club Angus steer slaughtered in April 2021 will qualify for a net price of €4.43/kg; at a market price of €3.75/kg, the same animal would earn €4.28/kg," the programme sponsors claimed.

So 43 cents a kg bonus incl the angus premium. It looks like a win win situation for Kepak and Glanbia, security of supply for Kepak and a guaranteed market for cereal bi-products for Glanbia, with the farmer carrying the can as usual. Was anybody on here involved with the KK kclub with Keenans and Kepak? How does this compare?

Basically it's letting farmers be feedlot managers on their own farms. I can see farmers getting a phone call at 5am on a Monday morning to have 20 bullocks into their nearest kepak plant by 8am or else no bonus.

It's like any deal there has to be something in it for all parties......Factories are always looking for a commitment of supply, especially in scarce times,
If it doesn't run they'll have to come up with something different...or will they.
I can't see less beef being available to them next month or even next year,
Like the lamb price now, requirement for low cost production will definitely make it more seasonal with an even poorer price at peak supply times.
The processors will have to pay a bigger differential to even out suppllies, unfortunately there's now a euro+/kg differential in the lamb price across the year and it's the lower price that's creating the differential rather than paying a good price in scarce times.
If they're paying a genuine bonus of circa 50c/kg they'd be entitled to call the shots but it won't work out like that, publishing a makey up base price and going by that is open to manipulation....anyone with experience of producer groups will agree with that statement

Bass Reeves

The bonus is 15c/kg unless beef prices are below 3.75/kg. For this you have to buy your feedstuff and get supplies from Glanbia. From my dealings in general Co-op's are usually not very competitive for feedstuffs and way dearer than online suppliers for meds. Also will the demand be for GM free beef by the back door. I am pricing a summer grass ration at present.

Adding 33% barley instead of maize is adding 20/ ton to the ration. If GM free was the demand for the feedstuffs you could not use maize or soyahulls this could add 20-40 euro/ ton to rations. If you had to buy you meds from Glanbia it could add 3-10 euro/ head to costs. This is a single movement system so it has limited appeal only to calf to beef men unless you get Glanbia dairy farmers willing to bring calves to weanlings or store's. TBH its a poorly taught out production system riddled with potential costs and no upside for the farmer. I would not touch it with a 40 foot pole

jaymla627

Bass Reeves wrote: »

The bonus is 15c/kg unless beef prices are below 3.75/kg. For this you have to buy your feedstuff and get supplies from Glanbia. From my dealings in general Co-op's are usually not very competitive for feedstuffs and way dearer than online suppliers for meds. Also will the demand be for GM free beef by the back door. I am pricing a summer grass ration at present.

Adding 33% barley instead of maize is adding 20/ ton to the ration. If GM free was the demand for the feedstuffs you could not use maize or soyahulls this could add 20-40 euro/ ton to rations. If you had to buy you meds from Glanbia it could add 3-10 euro/ head to costs. This is a single movement system so it has limited appeal only to calf to beef men unless you get Glanbia dairy farmers willing to bring calves to weanlings or store's. TBH its a poorly taught out production system riddled with potential costs and no upside for the farmer. I would not touch it with a 40 foot pole

Glanbia are some ticket, been a bit naive I thought when all inputs had to be bought from them it just accounted for the calf, but they have it in the journal that all farm inputs for your cows have to be bought from them also, absolute shower of c**ts and that’s to put it mildly, just when you think they might be softening a wee bit with a reasonable enough scheme they stick in the above stipulation

wrangler

jaymla627 wrote: »

Glanbia are some ticket, been a bit naive I thought when all inputs had to be bought from them it just accounted for the calf, but they have it in the journal that all farm inputs for your cows have to be bought from them also, absolute shower of c**ts and that’s to put it mildly, just when you think they might be softening a wee bit with a reasonable enough scheme they stick in the above stipulation

They couldn't have it any other way, you couldn't depend on the farmers to feed only glanbia product to the contracted cattle when there'd be a cheaper product in the same yard, It's the same with organic, you're not allowed to have non organic produce even in the same yard.
They have to be able to do spot checks to ensure the cattle are being fed according the Ts and Cs
No matter what scheme ever came out, there'd always be farmers twisting it

Hershall

jaymla627 wrote: »

Bass Reeves wrote: »

The bonus is 15c/kg unless beef prices are below 3.75/kg. For this you have to buy your feedstuff and get supplies from Glanbia. From my dealings in general Co-op's are usually not very competitive for feedstuffs and way dearer than online suppliers for meds. Also will the demand be for GM free beef by the back door. I am pricing a summer grass ration at present.

Adding 33% barley instead of maize is adding 20/ ton to the ration. If GM free was the demand for the feedstuffs you could not use maize or soyahulls this could add 20-40 euro/ ton to rations. If you had to buy you meds from Glanbia it could add 3-10 euro/ head to costs. This is a single movement system so it has limited appeal only to calf to beef men unless you get Glanbia dairy farmers willing to bring calves to weanlings or store's. TBH its a poorly taught out production system riddled with potential costs and no upside for the farmer. I would not touch it with a 40 foot pole

Glanbia are some ticket, been a bit naive I thought when all inputs had to be bought from them it just accounted for the calf, but they have it in the journal that all farm inputs for your cows have to be bought from them also, absolute shower of c**ts and that’s to put it mildly, just when you think they might be softening a wee bit with a reasonable enough scheme they stick in the above stipulation

Three winners in this scheme Dairy man [supplying Glanbia] selling the calves, Glanbia and Kepak.
As for loyalty look at how kepak dropped their Kk farmers..

jaymla627

wrangler wrote: »

They couldn't have it any other way, you couldn't depend on the farmers to feed only glanbia product to the contracted cattle when there'd be a cheaper product in the same yard, It's the same with organic, you're not allowed to have non organic produce even in the same yard.
They have to be able to do spot checks to ensure the cattle are being fed according the Ts and Cs
No matter what scheme ever came out, there'd always be farmers twisting it

Would be surprised if they get any suppliers to sign up to the scheme to be honest, no sane person would commit to buying all their inputs to a company that regularly would be 20% plus dearer on feed/fert/chemicals, then independent companies, just to get an extra few euro on a beef calf

jntsnk

It’s a win win for everyone expect the farmer.

Gawddawggonnit

jntsnk wrote: »

It’s a win win for everyone expect the farmer.

Nothing new there.

Brown Podzol

jaymla627 wrote: »

Would be surprised if they get any suppliers to sign up to the scheme to be honest, no sane person would commit to buying all their inputs to a company that regularly would be 20% plus dearer on feed/fert/chemicals, then independent companies, just to get an extra few euro on a beef calf

It order to be on any of the representative committees including the board of Dairygold you have to commit to buy 80% of your farm inputs from Dairygold. Using the above measure they are all 80% insane. Sounds about right.

memorystick

As soon as I read about Glanbia involvement I stopped reading. They're the Jimmy Saville of merchants.