Farm Assurance Continues to Pay a Premium

Tracking of prices paid for assured and non assured livestock in Scotland has revealed an average premium of 8p per kilo liveweight for assured cattle for the first six months of 2009, while assured new season lambs secured an extra 2.4p per kilo during May and June.

Quality Meat Scotland, the red meat industry development and promotion body, analyses information drawn from Scottish auction marts to determine the level of the premium on an ongoing basis.

For the six month period from January to June 2009 the Assurance premium was:

  • Steers 6.1 p/kg lwt
  • Heifers 4.8 p/kg lwt
  • Young bulls 11.1 p/kg lwt
  • Lambs (2009 crop) 2.4p/kg lwt
  • Hoggs 4.6 p/kg lwt

The average premium on a 550 kilo cattle beast would be £44 and for a 40 kilo lamb would be £1.

Further breakdown of the figures shows that the level of cattle assured in Scotland remains around the 97% mark and for sheep at 86%, meaning Scotland continues to offer retailers the highest available percentage of farm assured stock.

QMS Chairman Donald Biggar said: “It’s important for scheme members that farm assurance continues to pay its way and these figures show that is the case.

“Scotland has led the way in investing in consumer assurance and our fully integrated, whole chain schemes are the envy of the rest of the world. Nevertheless we fully understand the effort, both in terms of time and money, that goes in from all sides and it is important that people are aware that the level of investment is worthwhile and earning them a premium.”