Savanna Beef has adjusted its cattle weight categories to encourage farmers to deliver more animals during the low season and support producer profitability.
The company announced the changes to shareholders and members of the Beef Value Chain Forum last week.
The changes were approved by Savanna Beef’s price committee and are aimed at responding to current market conditions and seasonal trends.
Under the new structure, Savanna Beef will keep three weight categories: 200kg to 219kg, 220kg to 239kg, and 240kg and above.
The company says the changes are meant to encourage farmers to deliver cattle during the off-season while keeping its current pricing system in place.
“The intention of these changes is to create an incentive for off-season deliveries while retaining the integrity of the current pricing framework,” the company notes.
The revised pricing structure will take effect on 1 October, in line with Savanna Beef’s 30-day price change policy.
However, the new weight categories will apply to all cattle delivered from 1 September because these deliveries form part of the company’s third-quarter pricing period.
Savanna Beef says the adjustment seeks to balance market conditions with returns to shareholders and encourage a steady supply of cattle during the off-season.
“We believe this adjustment strikes an appropriate balance between market realities and shareholder returns, while continuing to encourage a consistent supply during the off-season period,” the company adds.
