The prices paid by approved meat processing facilities in respect of TB reactors do not affect the Summary of Market Prices report, as that is compiled solely using mart sales data.
Animals removed as reactors under the TB Eradication programme are valued by independent Valuers appointed to a panel following an open framework competition run in accordance with EU procurement guidelines. The farmer experiencing the disease breakdown chooses a Valuer from this panel and my Department provides the Valuer with weekly guideline summary prices. It is important that Valuers have access to up-to-date prices for use as a reference when valuing the current market value of animals.
Under the terms of the TB Eradication Scheme, for purposes of livestock valuations of reactor animals “Market Value” is defined as the equivalent price which might reasonably have been obtained for the animal at the time of determination of compensation from a purchaser in an open market if the animal was not affected by TB or was not being removed as part of a depopulation under the disease eradication programme.
My Department carries out data collection in livestock marts all around the country in relation to the On Farm Market Valuation scheme. My Department records cattle on their merit (quality) score of 1 to 5 (with 1 the best & 5 the poorest) & number of cattle in the lot/batch. The cattle breed, weight, price, sex, stage of finishing and dysfunctional traits, EBI, Eurostar rating, lactation status and milk yield/status where appropriate.
This mart data is compiled to produce the weekly Summary of Market Prices Report. The report is provided to the approved panel of Independent Valuers. It is also included in the Reactor pack provided to farmers in a TB breakdown. When a herd goes down with TB, the Independent Valuer, selected by the herdowner in most cases, visits the holding to value animals on farm with reference to valuation guidelines and this Report to ensure that farmers are given an appropriate value for their animal(s). OFMV compensation ceilings also apply to each animal in the Scheme.
The prices paid to farmers for TB reactor animals by approved meat processing facilities are reported to my Department on a weekly basis but those prices are not included as part of the process when compiling the weekly Summary of Market Prices report.
Once a valuation has been agreed by both the herdowner and my Department, the animals are removed for slaughter.
On receipt of factory dockets from the herdowner, which details the salvage value paid by the meat processing facility for the TB reactor animal, my Department issues payment for the remainder of the valuation bringing the amount up to the market value assigned by the independent valuer. The herdowner thus receives the relevant salvage value. I am satisfied that the summary prices produced on a weekly basis provides a fair reflection to both the farmer and my Department of the market value for bovine animals.
