Farmers who are buying 350-430kg store cattle this autumn for finishing next autumn (2024) will need a beef price of €4.37-5.31/kg (depending on the cattle type) to break even, according to Teagasc guideline figures.
The figures were outlined at a Teagasc suckler and beef farmer information event which took place at Kildalton Agricultural College.
As well as the costings on buying cattle for finishing next autumn, a cost analysis on buying 500-540kg store bullocks to finish this winter (2023/24) was also provided to farmers.
The table below outlines the figures for farmers purchasing cattle this autumn for finishing next autumn:
It was emphasised at the event that the costs will be different on every farm and farmers should use the budget as a template and include the costs relevant to their farm or system.
The Teagasc guideline figures are broken down into three categories: Continental-cross; Hereford-cross and Friesian.
The table above uses an assumed average purchase weight of 350kg for Friesian and Herefords with an assumed purchase price of €1.72/kg and €2.24/kg respectively.
An assumed purchase weight of 430kg is used for continentals with an assumed purchase price of €2.75/kg.
The table below shows the impact of higher and lower store cattle prices on the breakeven selling price required:
Farmers were reminded that silage quality is critical to animal performance over the winter. In the above costings, silage with a dry matter (DM) of 20% is assumed with a DMD of 72% and a cost of €45/t DM.
Transport and marketing costs were included at €40/head. Dosing and other animal health costs were factored in at €11/head with no mortality assumed. Grazing costs were factored in at €48/head.
The costings also accounted for half the interest cost on feed and animals borrowed at 7%. Meal costs were factored in at €330/tonne.
The selling prices outlined in the Teagasc budget only covers variable and fixed costs and does not include a margin.
While the costs will vary from farm to farm, the key point is for farmers to do their own budgets with their own costs and be realistic with costs.