Steer winter finishers could need up to €5.98/kg to breakeven in 2023 – Teagasc

Farmers operating winter finishing steer systems could need up to €5.98/kg to breakeven in spring 2023.

That is according to Teagasc, which, in recent weeks, released a series of beef budgets for 2022/2023, covering four production systems.

Its winter finishing steer budget looks at a Friesian, a Hereford-cross and a continental-cross and also takes a look at the impact of autumn 2022 store prices, being lower, assumed and higher, on breakeven prices needed in spring 2023.

Selling prices required, it added, only covers variable and fixed costs and, therefore, does not include a margin.

The state agency has made its assumptions on “very good” efficiency levels with a “high” average daily gain.

It has based costings on meal at €440/t, with “well” preserved silage: 20% DM and 72% DMD, at the cost of €50/t.

Other expenses it has accounted for include €8/head for animal health (dosing, for example) and transport and marketing at a rate of €42/head.

It also included half the interest on feed and animals borrowed at 7%.

The state agency noted that this is a “high risk” system that is sensitive to buying and selling price and performance.

It recommended that using ad-lib meals over the last 80 days could be an option in a year with lower concentrate costs.

Here are Teagasc’s workings: