Plan Ahead for Greatest OTM Rule Change Value
23/08/05

English beef and dairy herds will need to plan ahead this autumn with an understanding of all the main issues involved if they are to take full advantage of the probable Over Thirty Month rule change allowing animals born after July 1996 to re-enter the food chain later this year, advises the English Beef and Lamb Executive (EBLEX).

Even if the welcome rule change now being recommended to ministers by the Food Standards Agency takes place before the end of the year as currently envisaged, the extent to which producers will benefit from it depends upon a number of factors. These include:

• The number & location of abattoirs approved to process older cattle for the food chain;
• The post-rule change arrangements for disposing of cattle born before August 1996;
• The timing of a resumption of bone-in beef exports;
• The beef farm assurance status of the dairy cattle; and,
• New restrictions on holdings on suspicion of BSE.

A total of 100 abattoirs across Great Britain have so far expressed a desire to process over
30 month cattle for the food chain. One of a team of 10 Area Veterinary Officers will have to be present for at least part of the first two days of each plant's processing, which may limit the number of abattoirs able to take animals in the weeks immediately following the rule change.

Transitional arrangements are being put in place to cater for this and the fact that the Older Cattle Disposal Scheme (OCDS) for cattle born before August 1996 and permanently excluded from the food chain is unlikely to be in place before mid-December.   For a limited period, these arrangements will provide producers with the flexibility to sell over 30 month animals born after July 1996 either into the food chain or through the existing OTMS. They will also help to ensure a more gradual re-introduction of cow beef into the UK market.

Although recent cull cow prices in the Republic of Ireland compare favourably with the current OTMS compensation price of 88p/kg deadweight, it is important to appreciate that this trade is supported by a normal export market which is unlikely to be the case in the UK until the end of 2005 at the earliest.  Prices ranging from 95-132 p/kg deadweight in the Irish Republic also underline the extent to which future cull cow returns will depend on carcase quality.

At the same time, the marketability of these older cows will clearly be influenced by their farm assurance status. This presents an additional challenge for the majority of National Dairy Farm Assured Scheme (NDFAS) members not currently beef assured.