European Union accreditation provides Hereford producers with valuable marketing options.
Hereford producers have been urged to gain European Union accreditation to increase marketing options and take advantage of a valuable market.
Herefords Australia took on board a call for commercial producers to gain accreditation by a major processor during the January weaner calf sales.
And, it is not only processors but lot feeders are seeking EU accredited whiteface steers for branded product such as Hereford Reserve.
Thomas Foods International assistant livestock manager Ben Davies was disappointed over the lack of accredited Hereford pens at Wodonga and encouraged producers to head the call.
TFI bought 200 EU accredited Hereford steers from the Casterton and Hamilton sales for the company’s Iranda feedlot at Tintinara.
“We were looking for calves over 350kg and paid 350-370c/kg,’’ he said.
The EU remains Australia’s highest value large export market on a per tonne basis, with shipments averaging $12,610 a tonne and a total value of $297 million in 2015, according to Meat and Livestock Australia.
Since early 2009, Australian EU over-the-hooks grass fed cattle prices have consistently been quoted 33c/kg above the heavy and medium steer.
In 2015, over-the-hook EU cattle prices across NSW and Queensland reached new highs, achieving a record yearly average price at 524c/kg, and increase of 37 per cent year-on-year.
According to MLA market information, 20,273 tonnes of chilled beef was exported in 2016 – a 10 per cent fall on 2015.
A total of 568kg of frozen product was exported (33 per cent down on 2015) to give a total of 20,841 tonnes swt (shipped weight) of grass and grain fed product for the calendar year.
The top 10 cuts of Australian beef exported to the EU are topside, striploin, rump, silverside, cube roll/rib eye, roll, tenderloin, chuck roll, blade, thick flank/knuckle and chuck.
At the Victorian Western District weaner sales this year, there was a strong line-up of EU accredited steers, with the vast majority of buyers electing to retain the cattle in the system.
At Casterton on January 10, EU accredited steers sold for 360-418c/kg or $1139-$1395.
The next day at Hamilton, a larger selection of accredited pens resulted in steers over 350kg selling for 354-386c/kg or $1323-$1580, and those 250-350kg returning 382-423c/kg or $1077-$1364.
In the heifers at Hamilton on January 18, EU accredited pens sold for $780-$1306 or 335-406c/kg.
Herefords Australia chief executive officer Dr Alex Ball encouraged commercial producers to head market signals and consider gaining European Union accreditation.
The European Union Cattle Accreditation Scheme requires accredited farms to:
- Have only HGP free cattle on their property at all times (with the exception of breeding bulls)
- Only purchase and sell cattle from other accredited properties and saleyards (with the exception of approved non-EU breeding females and bulls)
- Use the National Livestock Identification Scheme (NLIS) to identify and trace scheme cattle movements
- Use European Union vendor declaration forms to identify scheme cattle which are being moved
Commercial Hereford producers with a track record of selling EU accredited cattle spoke of lucrative premiums for steers and heifers.
Paul Malseed, “Orana”, Breakaway Creek, uses his EU accreditation as a marketing option to attract buyers at Victoria’s western districts sales.
Mr Malseed sold 186 accredited steer weaners at Hamilton this year to average $1304, with 100 bought by NSW steer finisher Paul Mason.
“Three years ago we were getting just above 200c/kg and the 10c/kg EU premium on the steers made up for it but I can’t say there was a big difference in the heifers,’’ Mr Malseed said.
He said the paperwork was not difficult and was a case of “learn as you go’’.
“Reconciliation of the NLIS tag with PIC number takes a little time however the system works well.
“Most years, my heifers are sold to restockers and backgrounders, and whether they stayed in the system depended on their requirements.’’
Ron Beaton, Giant Rock Partnership, Nareen, Vic, sold steers and heifers at Hamilton where buyer Marc Greening retained the accreditation for his Injemira Advantage program.
“The EU has given me a slight premium over the years but if you are not in it, you are missing out,’’ he said.
David Lyons, Melville and Melville Park studs, Vasey, sold his top pen of weaners, 371c/kg and EU accredited at Hamilton, for $1305 or 352c/kg, and $1227 or 372c/kg for his seconds weighing 330kg.
“EU accreditation has provided a premium at times on the steers and heifers but it also gives me another marketing option,’’ he said.
“There is no difference in the paperwork as we have to keep our data base up to date anyway.’’
Casterton producer Owen McClure, “Beerik’’, was among the vendors with bigger drafts of accredited weaners at Hamilton.
“There certainly is an advantage with some buyers – the EU grid is that wide at the moment you can drive a truck straight into it,’’ he said.
Meat and Livestock Australia provide a Tips & Tools fact sheet on the EU accreditation scheme (www.mla.com.au) while application forms are available from the Department of Agriculture and Water Resources on 1800 305 544.
For further information contact the EUCAS Helpline on 1800 305 544 or email eucas@aqis.gov.au, or visit www.herefordsaustralia.com.au and click on the technical tab.
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Caption: (image 1958-edit) European Union accreditation provides Hereford producers with valuable marketing options.