Feature Market Nov 2019 Angus Steer Carcass Wt Grade Fat Score AQP (average quoted price) Adjusted by Grade/Grid QA or Club Protocol Bonus Breed Bonus Club Premium Floor Price adjustment Farmer Price Difference 330 Kgs R4€3.45 €0.00 +€0.20/Kg 0 0 0 €1204.5 Twenty20 Beef Club Angus Steer 330 Kgs R4€3.45 €0.00 +€0.20 +€0.10/Kg +€0.25/Kg +€0.05/Kg €1336.5 +€132 JANUARY 2020 www.irishfarmersmonthly.com Market Nov 2019 Friesian Steer 350 Kgs O3+ €3.45 -€0.24 €0.12 0 0 0 €1165.50 Twenty20 Beef Club Friesian Steer 350 Kgs O3+ €3.45 -€0.24 +€0.12 0 +€0.25/Kg +€0.05/Kg €1270.50 +€105 They felt there was a certainty there that they were going to be getting an animal that should perform to its genetic expectation and deliver performance over its lifetime. Farmers do want assurance and certainty around the calves that they are buying”. “We’re looking for more rearers and finishers, as well as dairy farmers to supply calves, for the coming season with the aim of 20,000 calves being reared under the programme in 2020.”  programme are required to follow the Dairy Beef Index and use this to inform their beef breeding decisions. This approach provides rearers and finishers with significant benefits compared with random selection” he said. “Beef production systems are currently challenged and this is a way of adding value to the output.” Performance is managed through adhering to high Lifetime Performance “For many of those farmers that engaged with us, they felt it was a chance to get more certainty and predictability around the price they were getting.” Economic return is the big driver There are three key items that drive economic return – genetics, lifetime performance, and sales price.  Animal performance and genetics is a major variable and going forward this will be a key issue for sellers and buyers of calves. Taking the beef index component of the Dairy Beef Index (Nov 2019 evaluations for beef bulls with at least 30 dairy calvings) the difference between the best and worst Angus bull was €117, with similar differences within other breeds. Similar differences exist within the cow population. “All of the farmers in the Genetics standards of nutrition, animal health and welfare. These are supported by quality inputs, strong technical support and robust protocols which drive the overall efficiency of the enterprise.  The Twenty20 pricing structure brings greater certainty to beef finishers and provides them with a predictable financial pathway for their cattle. The example below demonstrates the returns available from Twenty20 Club membership compared with the prevailing market. The table compares how two steers would be priced in the market (November 2019) versus how they would return Pricing component 22