A Farmer’s Guide to SellingFinished Beef and Sheep

EBLEX NFU Sellers Guide A5, 6pp_Layout 1 12/08/2011 17:38 Page 1

A Farmer’s Guide to Selling Finished Beef and Sheep

Successful beef and sheepproduction delivers a productthat meets the demands of theend consumer. However, themarketing process is not alwaysstraightforward, and there canbe many administrative andpractical issues to deal with on the way.

This leaflet provides a quick and simplechecklist for anyone selling finished prime orcull stock to maximise the financial returns totheir business. It covers not only basic points,but also includes less obvious considerations.

Understand marketing requirements

It is vital to find out what the market placewants in terms of carcase classification,carcase weight, sex of animal, assurancestatus, etc, and then produce animals thatmeet these requirements.

Consider the advantages and disadvantages ofselling liveweight or deadweight (either straightto the abattoir or via a marketing group). Whichroute is chosen will largely be dictated by thefarming system and personal preference.

Assess your stock against market needs

Weigh and handle stock regularly whenassessing their readiness for slaughter. Usethe correct handling points in relation tocarcase classification.

Direct your stock to the most appropriate outletthat will generate the best financial returns. Cull cattle must be presented at a plantlicensed to process older cattle. Sheep withone permanent incisor or more are classed as mature sheep and will be subject to carcase splitting.

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Monitor prices

Past price trends, seasonality and current dailyprices are important factors in determining anymarketing strategy. A range of liveweightprices and a weekly deadweight average areregularly published on websites such aswww.eblex.org.uk and in the farming press.For more specific information contact yourauctioneer, abattoir or marketing agent.

It is also useful to monitor exchange rates asthese have an important influence on theexport trade, particularly for lambs.

If comparing deadweight prices, be familiarwith the pricing basis and be aware of anypotential weight or out-of-specificationpenalties.

When comparing grid prices check thedressing specification is the same and takeinto account the level of deductions rather thanjust the price.

A guide to carcase weight differences between the various dressing specifications is shown:

Beef

The following weight reductions are for atypical beast. Carcases with excess fat willhave higher weight losses.

Lamb

There are two specifications agreed by theindustry:

n MLC Standard Conditions

n MLC Standard Conditions Tail Removed -which equates to an average loss of 0.2kg.

While the Agriculture and Horticulture Development Board, operating through its EBLEX division, seeks to ensure that theinformation contained within this document is accurate at the time of printing, no warranty is given in respect thereof and, tothe maximum extent permitted by law, the Agriculture and Horticulture Development Board accepts no liability for loss,damage or injury howsoever caused (including that caused by negligence) or suffered directly or indirectly in relation toinformation and opinions contained in or omitted from this document.

Standard Specification => EC Specification Males 1.2%

Females 1.7%

EC Specification =>UK Specification Males 0.8%

Females 0.8%

Standard Specification =>UK Specification Males 2.0%

Females 2.5%

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Alternatively a 'company spec' can be used.The most common is Excluding Kidney Knoband Channel Fat (KKCF). This is equal to anaverage reduction of 0.5kg.

Understand hot carcase rebates and anyrounding down of carcase weights.

See EBLEX Beef & Lamb Selection Manuals forfurther information.

View the EBLEX deadweight price calculatorunder costings and tools on www.eblex.org.ukto compare the prices offered by two abattoirs,taking into account different dressingspecifications, abattoir charges and transport deductions.

For more information on dressingspecifications see Meat and LivestockCommercial Services Ltd (MLCSL) Beef andSheep Authentication leaflets available fromwww.mlcsl.co.uk/mlcsl/publications.asp

Market stock when they reach ideal fat levels

Do not sell on weight alone as over-fat animalscan be heavily penalised. Weigh and handleanimals regularly in the run-up to sale.

Market your stock when the animal best suitsyour buyer’s target specification. Offer lambs inlevel batches, particularly when selling through

a live market, taking into account weight, fatlevel and conformation, as well as breed andsex differences. Most auction marts provide asorting service for their customers. Someauction companies, abattoirs and marketinggroups also provide an on-farm stock selection service.

Book your stock in

When selling deadweight, animals need to bebooked in with the abattoir for a set date andtime slot, with details of the type and numberof stock.

It is important to take what has been bookedin, and not to under or over supply. Theabattoir should give out a price grid that theyare working to for the day in question.

Keep an open dialogue with the auctioneerand/or procurement contacts, to help assessthe current market situation and to build long-term relationships. If an auctioneer knows youhave stock ready to market they can informpotential buyers and secure their attendance.Marketing groups or abattoirs may be able toplace your stock to specific outlets if they knowthey are coming available.

Terms of trade from abattoirs and auctioneersshould be available on request.

A Farmer’s Guide to Selling Finished Beef and Sheep

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Ensure documentation is correct

Ensure stock is correctly identified according tothe relevant legislation. All tags should beofficial tags, which are clearly legible. Animalspresented for slaughter with handwrittenreplacement tags or worn tags will be rejectedwithout payment.

Ensure cattle passports match the tag exactly.Check carefully, especially with bought-inanimals, as there may be two with the sameanimal number, although the herd mark willbe different.

When selling cows ensure that the abattoir islicensed to kill older cattle and that the animalswere born on or after 1st August 1996. Incorrectpresentation of stock will lead to the animalbeing destroyed with no payment being madeand the possibility of prosecution.

Sheep licences should be completed for everymovement. Cattle passports need to be signedand dated. All holding registers need to becompleted to show the off movement and thatthis tallies with actual movements. Movementsneed to be reported as appropriate.

Food Chain Information needs to be completedfor all slaughter stock. For sheep, thisdeclaration is included on the licence. Forcattle, speak to your auctioneer, abattoir oragent for the appropriate form.

If selling liveweight a market declaration formis often required. Ensure stock complies withthe six day movement restriction, asappropriate, especially in the case of ‘green’markets, where stock is being sold forbreeding, feeding or slaughter.

Clean livestock

Ensure cattle and sheep are presented to themarket or abattoir in a clean state. Dirtyanimals are a contamination risk and may notbe accepted for slaughter until further cleaninghas taken place. In this case aclipping/cleaning charge may be incurred.Avoid feeding animals immediately prior tosale, as a full gut can lead to contaminationproblems on the slaughter line.

Health status

It is the seller’s responsibility to ensure stock isfit for the intended purpose. Animals sold forslaughter must be sold fit for humanconsumption.

If stock has been treated with veterinarymedicine prior to marketing ensure allwithdrawal periods have been met. These varyfrom product to product, so check labelscarefully when treating stock close to slaughter.

Ensure that all TB pre-movement testing hasbeen conducted as required. A Food ChainInformation declaration has to be completedfor all slaughter stock.

All stock must be fit to travel to the market and/orabattoir. Stock unfit to travel should be dealt withvia emergency slaughter measures. Speak to thevet and/or local plant in these situations.

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Farm assurance

Many supply chains / customers request thatanimals are farm assured. Ensure that allanimals fulfil the necessary residency periods,particularly bought-in animals or animals outon grass keep. If you are unsure of farmassurance requirements speak to yourprocurement staff / auctioneer.

If selling liveweight ensure the auction marketis assured or the animal will lose its assurancestatus. Also confirm that any hauliers used areassured. For further information visit:http://assurance.redtractor.org.uk/rtassurance/farm/beef/bl_about.eb

Farm assured and non-assured pricedifferentials can be found at www.eblex.org.uk- press the ‘Markets’ button and look in the‘Farm Assurance’ section.

Deductions

Deductions can vary considerably betweendifferent marketing routes and companies.Take the level of deductions into account whencomparing prices.

If selling liveweight the following charges aretypically incurred:

n Auctioneers commission

n AHDB levy (for finished stock sold in EnglishMarkets) - £4.05 for cattle and £0.60 forsheep

n Ante Mortem Inspection (AMI) Charge -payment that goes to the abattoir to coverthe compulsory inspection charge

n Some companies may charge a Bad Debt Levy

If selling deadweight the following charges aretypically incurred:

n Ante Mortem Inspection (AMI) Charge

n Classification

Note: This is not always carried out by anindependent classifier employed by MLCSL. Itcould be someone from an alternative privatecompany or an employee of the plant - checkwith the plant or at www.mlcsl.co.uk

The classifier also monitors weights anddressing specifications in accordance with EUlegislation for beef.

There is no mandatory EU legislation governingsheep classification, weighing and carcasedressing.

More information on classification can befound in EBLEX BRP Sheep Manual 1 and BeefManual 2. Request a copy by emailingbrp@eblex.org.uk or call 0870 241 8829.

n AHDB levy - £4.05 for cattle and £0.60 forsheep. Applies to stock slaughtered inEngland. Stock slaughtered in Scotland orWales will be liable to the rates applicablein those countries

n Specified Risk Material (SRM) disposal

n Residue Testing

n Rejection Insurance

Monitor returns / kill sheets

Raise any queries about classification ofcarcasses with the plant immediately. MLCSLstaff will review any classifications applied, inplants where they supply classification services(as long as the carcase has not gone too fardown the processing line and the carcase wasstraight leg hung not hip suspended).

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Many plants encourage farmers to watch theiranimals being classified to ensure they have afull understanding of how their stock performand how well they match the specification theplant requires.

Carcase weights can be affected by bruising,abscesses, arthritis etc, which have to beremoved from the carcase before weighing; acondemnation note should be sent if this is thecase. Speak to the abattoir if you are uncertainabout the weights returned.

If stock do not perform to expectations whensold liveweight, speak to the auctioneer assoon as possible after the sale, as they may beable to gather feedback from the buyers.

If feedback shows carcases falling too lean ortoo fat, refine the selection and/or feedingstrategy.

If conformation grades fall below expectations,review the breeding strategy or the type ofstore animals being bought in.

Attend a free EBLEX Better Returns Programme‘Live to Dead’ day to re-hone selectiontechniques to ensure stock are being sold atthe right time.

Identification and paperwork

A quick summary

Producers must send correctly identified stockto slaughter. Mistakes in identification willdelay the process until they are rectified. Thiscould lead to an animal being destroyedwithout payment and the producer prosecuted.Once animals are presented to the abattoirlairage they cannot return home, so gettingeverything in order beforehand is vital.

Always ensure stock are correctly tagged andaccompanied by the correct paperwork. Whereanimals are double-tagged ensure the tagsmatch and are legible.

Sheep

In accordance with current legislation, allsheep born or identified after 31 December2009 must have two matching tags, one ofwhich must be a yellow electronic tag.

The only exception is those intended forslaughter before they reach 12 months of age.These can be identified with either:

n Single yellow electronic slaughter tag

n Single non electronic slaughter tag

n Full EID (double tags)

Sheep born before 31 December 2009 cancontinue to be tagged on the old system.

Speak to your auctioneer/procurement contactif you are unsure which tag to use to maximiseyour potential marketing opportunities.

All sheep should be accompanied with a licence(AML1 form), with individual animal numbersrecorded or batch/batch-within-batch recordingfor those identified on a slaughter tag. Licenceshave a Food Chain Information sectionincorporated in them.

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CattlePaperwork

Date of birth Documentation

Pre 1 July 1996 COR (Certificate of Registration)

1 July 1996 - 27 September 1998CPP1 (Blue-green cattle passport) AND COR (Certificate of Registration) OR CPP13(Replacement Chequebook style passport)

28 September 1998 - 31 July 2011 CPP13 (Chequebook style passport)

1 August 2011 - present date CPP52 (Double-sided A4 sheet)

EBLEX is a division of the Agriculture and Horticulture Development Board (AHDB).

©Agriculture and Horticulture Development Board 2011. All rights reserved.

The contents of this publication may not be reproduced without the express permission of EBLEX.

EBLEX, Agriculture and Horticulture DevelopmentBoard, Stoneleigh Park, Kenilworth, Warwickshire, CV8 2TL

Telephone: 024 7669 2051 www.eblex.org.uk

National Farmers Union, Agriculture House, National Agricultural Centre, Stoneleigh Park,Kenilworth, Warwickshire, CV8 2TZ

Telephone: 024 7685 8500www.nfuonline.com

All cattle also need Food Chain Information forms completed in addition to their passport.

Tags

Date of birth Tag Requirement

15 October 1990 - 1 April 1995 Ear tag or tattoo. No UK Prefix

1 April 1995 - 31 December 1997At least one ear tag with unique alpha-numerical identity. UK prefix

1 January 1998 - 31 December1999

Ear tag in each ear with same unique alpha-numericalidentity for the lifetime of the animal. UK Prefix

1 January 2000 - present dateEar tag in each ear with same unique numeric identity for thelifetime of the animal. UK Prefix

A Farmer’s Guide to Selling Finished Beef and Sheep

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