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Catherina Cunnane
Catherina Cunnanehttps://www.thatsfarming.com/
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
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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:

 Winter Finishing Steers
Teagasc Beef Budgets 2022/ 2023
Friesian Hereford X Continental X
Purchase Weight October (kg)

Silage Required (tonnes)

Meals (kg/head/day)

Average Daily gain (kg)

Liveweight at Sale (kg)

Carcass Weight (kg)

500

5.5

4

0.9

626

326

500

5.5

4

0.9

626

332

530

5.0

4.5

1.0

670

375

Purchase weight

Assumed Purchase Price (€/100kg liveweight)

500

218

500

251

530

285

Purchase Price (€/ head) 1090 1255 1511
Plus Costs: (€/head)

Variable Costs (€)

Fixed Costs (€)

571

95

571

97

577

101

Total Costs (€) 666 668 678
Breakeven selling price required (€ / head) 1756 1923 2189
Breakeven selling price required

(€ / kg carcass)

5.39 5.80 5.84
EFFECT OF AUTUMN 2022 STORE PRICE ON BREAKEVEN PRICE REQUIRED SPRING 2023
Friesian Hereford X Continental X
Lower Store Prices Autumn 2022

– € per 100 kg

– Breakeven price required € / kg carcass

 

208

5.24

241

5.65

275

5.69

Assumed Store Price Autumn 2022

– € per 100 kg

– Breakeven price required € / kg carcass

 

218

5.39

251

5.80

285

5.84

Higher Store Prices Autumn 2022

– € per 100 kg

– Breakeven price required € / kg carcass

 

228

5.55

261

5.95

295

5.98

 

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