The Irish Angus Producer Group will not be operating its AAA scheme in 2020, following a review. Some 95 farmers take part in the scheme.

In a letter to producer group members, general manager of the group Charles Smith said: “A review of the AAA scheme has taken place and a decision has been reached that this scheme will not operate in 2020.

“All animals currently booked within the 100 days of slaughter rule will be treated as agreed.

“Animals booked for 2020 will revert to the next level of bonus below AAA. I wish to thank you most sincerely for your co-operation and support of this scheme over the last number of years,” the letter said.

Bonus

The Irish Angus Producer Group operates the scheme with processors ABP and Kepak. There is a standard bonus payment and an off-season bonus whereby a higher premium is paid in a given time frame when supplies were historically tighter in summer and winter.

The AAA off-season bonus was the highest available, offering 40c/kg for cattle produced to a range of selection criteria.

For example it returned an additional €132 for cattle delivering a 330kg carcase and a maximum of €152 for cattle hitting the maximum carcase weight limit of 380kg.

For cattle to be eligible, steers and heifers must deliver a carcase between 230kg and 380kg and grade E, U, R, O=/+, with a fat class of 2+ to 4+.

The off-season bonus will now reduce to 20c/kg, while the standard bonus will revert to the existing bonus of 10c/kg.

Residency

Cattle eligible for the AAA scheme must also have a minimum residency of 90 days before slaughter and have a maximum of four farm residencies in its lifetime. The AAA standard bonus is 20c/kg.

It should also be noted that for herds to be eligible for the AAA bonus a beef finisher must supply a minimum of 50 animals in one calendar year to qualify, while a suckler farmer must supply a minimum of 20 cattle per calendar year.

Background

The AAA scheme was brought in in 2012 for a five-year period and was extended on a yearly basis from 2017 onwards.

Some 1% of members and 4% of supplies through Irish Angus Producer Group are in the AAA scheme.