13/07/05
Finishers alarmed by lower than expected prices for prime cattle are turning their thoughts to feeding young cows to sell for commercial slaughter in late autumn - but are finding it difficult to lay their hands on animals of the right type.
So says the National Beef Association which would like auction companies to anticipate increased industry confidence that cows born after July 1996 could be sold into the beef distribution system sometime towards the end of October by gathering together suitable feeding cows so potential feeders have an opportunity to pick out the animals they prefer.
"It would be even better if Defra gave the industry a firm start date for the re-entry of younger cows onto commercial market because this would give everyone in the manufacturing beef business, from finishers and wholesalers through to manufacturers and retailers, a firm target to aim at," explained NBA chief executive, Robert Forster.
"It is obvious from the messages coming through from Brussels, and other key areas that will unlock the OTMS system, that a return date sometime around the third week of October is considered increasingly likely."
"But until an informed countdown to a confirmed start date is initiated few businesses will have the confidence to kick start new supply systems and set the delivery of the best possible finished cows in train."
According to the NBA some established feeders are so alarmed with recent trends on the prime cattle market they are already considering a move over to cow finishing.
"But one of their problems is the lack of opportunity to sort through a selection of suitable young cows and pick out animals that look most likely to gain weight quickly and offer a chance of a reasonable margin," said Mr Forster.
"One solution would be for a selection of auction markets to begin sales at which qualified cows of the right age, breeding and condition are offered to commercial buyers well before current OTMS arrangements end."
"It will take time to set these up, and then more time to finish the cows that are picked out for further feeding, so the earlier auction companies start thinking about this type of arrangement, and then potential finishers make room on their farms for a batch of suitable cows, the more likely the UK is to be able to take full advantage of changes to the OTM rule when the green light is given."
"The current average for O3 cows in the Republic of Ireland is around 144p which compares favourable with the 89p paid through the OTMS. Even allowing for an introductory discount for UK beef in the weeks immediately after the OTM rule change it is likely that well finished younger cows could be worth more than this so the chance of positive margins is possible."
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