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Commercial cattle producers this autumn are likely to be prepared to pay for quality following changes in subsidy payments.
Under the new Single Farm Payment Scheme and the absence of headage payments, Harrison & Hetherington auctioneer and sales and marketing director David Thomlinson said he believed the emphasis during this autumn's beef bull and female sales would be on quality both in the selection in terms of breed and within breeds. "In the past, a crossbred steer of poorer conformation would receive as much in subsidy payment as that of a quality beef animal," said Mr Thomlinson. "Producers, seeing that the best cattle get a bigger premium in the market place will want to breed for quality. "And because bull buyers will be selective not only in the breeds they buy but also on quality within the breeds, pedigree men will have to produce top quality animals." With finished beef cattle prices picking up in the run-up to the bull sales period, suckler herd numbers are being maintained. "We should be paid a fair price for our finished beef. Prices in pound notes are around 70 pre cent of what we were getting 10 years ago. If we translated that into real terms it would be frightening," he said. Mr Thomlinson said he anticipated the numbers forward for this autumn's sales to be slightly down in view of some apprehension about the market. With a shift to spring calving herds, more beef producers left bull buying until the sales early in the year. "People who want a bull for the spring should find that the best time to buy is in the autumn when prices are lower. "Two examples of Limousin bulls I wanted to buy for my own herd both made much more money after they were withdrawn from sale in the autumn and sold the following spring. "One I offered 3,000gns for in the autumn sold the following spring for 11,000gns and another which I tried to buy in the autumn at 2,000gns made 6,000gns in the spring. "There will be some high priced animals in all breeds but the autumn tends to be a buyers'market." Mr Thomlinson said beef producers should think long and hard about not buying a bull in the autumn to use in the spring. He could transfer his warranty period until he began to use the bull and during that time the bull could become acclimatised to its new environment. The benefits far outweighed the negative of having to house the animal. The new SFP scheme will undoubtedly produce cash flow problems for some, but the industry as it has in the past will adapt to the change. His advice to producers to save money is to buy a bull when they do not want one! "You aren't under pressure to buy a new bull so you value it differently and if it's within your price range then you buy it and you don't spend twice as much as you need to." | |||||||||||
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