Automated Livestock Payments
Always know the profitability of every livestock consignment
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.
Our Livestock Payments application monitors all the grading information to calculate the price. And whilst setting the base price is still a task best left to well-trained experts, our software analyses the data captured from an abattoir’s grading station and automatically adjusts the price for each animal.
Gain greater control over adjustments averages
Adjustment averages take account of a wide range of factors, including the farm or producer, type of animal, its grade and whether the cost needs to include a commission for the agent.
For livestock bought at market, our livestock payments algorithms can work out the profitability of each consignment. As these animals are bought without knowing weight or quality, our software can work out the value at the grading station and then the value after animals have been slaughtered, boned and sold to customers.
Eurogrid and farm assurance status management
For the farmers and producers, as our software incorporates the Euro grid grading system and feeds the data captured back into the livestock payments system, the time taken to process payment can be reduced.
The software also checks the farm assurance status, through its integrations with Red Tractor, SPECC and other schemes, which in turn affects the price.
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 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 slaughterhouses 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.
By capturing and processing data at key points in the production process, our livestock payments application analyses and automatically adjust prices according to:
- Farm or producer
- Buyer or agent, to adjust the commission
- Type of animal
Typical improvements to adjustment average, following livestock payments implementation = 1-1.5% per week.
Then, when an animal reaches the grading station:
- A profile will be set up to denote weight, grade, age, the 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.
- Grader will 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.
After determining the value at the abattoir grading station, the grading 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.
Using our livestock payments and adjustments application, some of our customers are already processing same day payments. They monitor when each batch is killed, graded, the automatically price it to process the payment.
Managing payments for sheep
Every sheep has a unique RFID tag. This tag is scanned before to the sheep is killed and provide information on where and when the sheep/flocks have been moved, and categorically link back to the farmers. Using this information, we can provide farmers with the reassurance that they will get paid for precisely what they sold.
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.
To find out more about our Livestock Payments and Adjustments application Contact us