With an average 20% shortage of cattle within the United Kingdom at any one time, it’s a seller’s market for farmers and producers.
Abattoirs have to set the base price, according to market rate, at the start of every week. This benchmark for livestock payments is then adjusted according to how the grade each animal achieves. But when animals are bought without knowing the weight and quality, it’s essential to understand the profitability of each consignment bought from market. With the high quantity and variety of livestock purchased every week, managing adjustments and understanding the consequences is a constant challenge for abattoirs.
When farmers and producers provide livestock to slaughter houses they need to understand whenever animals have achieved or not reached the target price for their livestock payments. With the right information, this could then be used to trace back conditions for rearing, such as feed, and make adjustments to gain greater consistency on price.
Gain greater control on adjustments averages
By capturing and processing data at key points in the production process, our livestock payments application analyses and automatically adjusts prices according to:
- farm or producer
- buyer or agent, to adjust for commission
- type of animal
Typical improvements to adjustment average, following livestock payments implementation = 1-1.5% per week.
When an animal reaches the grading station a profile will be set up to denote weight, grade, age, number of movements, type of animal (for instance steer, heifer, young bull). Using Eurogrid, the grader will visually assess according to the criteria for fat covering and muscle content and assign the relevant code, to denote where livestock fits on the scale – from poor to excellent. The combined information provides the specification and pricing bracket for the animal.
More than that, After determining the value at the grading station, the data collected can also assess the value after the animals have been slaughtered, boned and sold to customers. As animals are scanned in and out, data can be collected to report on when and where livestock and the meat products from processing them have gone to.
When abattoirs need to fulfil orders according to customer profiles, designation or destination code, our grading station software automatically checks which animals match the specifications.
Planning an upgrade to your livestock operations?
If you are considering an upgrade to your existing livestock systems, our food productivity experts are here to help. We already supply some of the largest meat producers in the UK with reliable and state of the art Livestock Systems.