Dairy Economic Breeding Index (EBI) and a younger slaughter age of cattle as measures to cut emissions could also significantly contribute to cost savings of up to €2 billion between 2021 and 2030.
Measures set out in the Teagasc Marginal Abatement Cost Curve (MACC) could see a cost saving of between €1,685 million and €2,017 million in the two carbon budgets until 2030.
A younger slaughter age and dairy EBI account for most of the cost saving. Excluding these, cumulative costs would range from €256 million to €730 million over the budgetary period.
Maximum annual costs in 2030 could range from €93 million to €199 million without these measures. Dairy EBI could save costs of up to €450 million annually by 2030.
Teagasc assumed that the average national EBI would increase to €240/cow, with an increase in milk delivered per farm to circa 590,000L, at almost 3.6% protein and 4.45% butterfat.
Following the publication of the MACC 2023 which outlines measure to reach the 25% emissions reduction target by 2030 for agriculture, Teagasc published the full document late last week.
Figures are based on a 8% rise in dairy cow numbers to 1.691 million and a 29% reduction in the suckler herd to 632,000 head, and requires very high levels of adoption of the set measures.
Slaughter age
In terms of suckler progeny, Teagasc seeks a reduction in slaughter age of early-maturing (EM) heifers, steers and bulls by a further 0.8, 0.4 and 0.5 months, respectively.
Late-maturing (LM) heifers and steers mean age of slaughter should be reduced by a further 0.6 and 0.4 months, and by a further 0.4 months for LM bulls, Teagasc said.
In terms of dairy-beef progeny, the slaughter age for EM steers and heifers should be reduced by a further 1.1 and 2.4 months, respectively, and a further 0.7 months for EM bulls.
The mean slaughter age of LM steers and heifers, Teagasc said, should be reduced by 0.9 and 2.4 months respectively, as well as a further 0.7 months for LM bulls.
Dairy heifers, steers and bull’s slaughter age should be reduced by a further 0.4, 0.7 and 0.8 months, according to the full Teagasc MACC 2023 document.
The impact on farm profit margin was as follows, according to Teagasc:
Improvement in net margin by finishing at earlier ages (€/d/head)
- Beef x beef €0.76
- Beef x dairy €0.70
- Dairy x dairy €0.70
“There is resistance to early finishing from a cohort of farmers, particularly those operating extensive finishing systems with later-maturing breed types.
“Finishing with lighter animals while also demonstrating the gain in margin will be key to measure success,” according to the Teagasc MACC 2023.
Diversification options including organic farming, tillage, forestry or biomethane production seek to displace 140,000 livestock units, principally in beef rearing, beef finishing and sheep systems.
Teagasc assumes a 7.5% uptake of organic systems, 8,000ha of forestry, 120,000ha of grassland for biomethane, and 30,000ha of tillage expansion to reach the 2030 emissions reduction target.