Excessive post-slaughter deductions for processing commercial OTM cattle
UK - The National Beef Association has reported that some abattoirs are deducting £7-8 per head for handling commercial Over Thirty Month cattle while the majority are making no deductions at all.
21 November 2006
2 minute read
And it is advising breeders to identify the companies that deliver the highest net, post-deduction, price and either offer their animals to them or divert their cows into the auction system, where the only deduction is a pre-agreed sales commission.
“All abattoirs are faced with similar costs for handling OTM cattle under brain testing and product separation protocol and when the OTM rule was removed last November abattoir representatives agreed that there should be no special deductions to meet this expense otherwise stock would be driven into the auction system,” explained NBA chairman, Duff Burrell.
“A survey among our members has highlighted that one abattoir among a cluster of regional companies that make no charge is deducting over £7 just for handling an OTM animal and there are a minority of others, scattered across the UK, which are taking off £4-£6 a head from the bid price quoted on the kill sheet.”
“These are serious take-offs, especially when the companies that make them tend also to deduct heavily to cover other handling costs, and so we are advising members with cast cows to sell to either avoid abattoirs that skim off additional money or offer their animals to a nearby auction market instead.”
“Now that the heavy seasonal cow cull is almost over there will be increased competition for OTM beef in the manufacturing market and breeders should include deductions when they are making calculations about which company, or which system, can net them most money,” Mr Burrell added.
