Glanbia/Kepak Twenty20 Beef Club 'over-subscribed'
There has been significant interest among farmers in the pilot phase of Glanbia/Kepak Twenty20 Beef Club.
The initiative sets out to offer members guaranteed market for their heifers and steers with a predictable and transparent pricing formula at time of slaughter
Glanbia Ireland has said that the 2019 pilot phase is over-subscribed with 6,000 calves signed up to the scheme.
It also noted that expressions of interest to date are close to the target for next year (which is 20,000 calves).
Over the coming years, Glanbia Ireland and Kepak have ambitious plans to rapidly expand numbers in the programme to 50,000 per annum.
The popularity of the scheme comes despite some concerns among farmers about having to purchase all of their inputs for all of their enterprises from Glanbia.
IFA backed the scheme stating that the model on dairy beef could deliver greater certainty on beef prices and better cashflow on farms.
Glanbia Co-op has provided funding for the pilot phase to allow its Members of the Twenty20 Beef Club to benefit from an advanced payment of up to €770 per animal to provide cashflow during the animal’s lifetime. This optional programme component, administered by Finance Ireland, will pay a Twenty20 Beef Club Member €35 per animal per month from months 3 to 24.
Animals enrolled in the first two years (2019 and 2020) of the Club will be paid the average market price, plus a Club Premium of 15 to 25 cent per kg, as well as a Club Protocol Bonus of 12 c/kg. Club Members will also benefit from additional price support in the event of a weak market price (see examples in Appendix).
There will also be a “seasonality” bonus to promote the marketing of animals in April (+6c/kg), May (+10c/kg) and June (+6c/kg). Members of the Club will also be eligible for Angus or Hereford breed bonus payments, which are guaranteed at the point of entry for the pilot phase.
Members of the Club will be required to strictly adhere to a defined rearing programme – jointly developed by Glanbia Ireland and Kepak.
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