Sunday, December 5, 2021
4 C
Galway
HomeBeefBull beef finishers will need up to €5.41/kg to break-even
Catherina Cunnanehttps://www.thatsfarming.com/
Catherina Cunnane hails from a fifth-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 company in 2015.
Reading Time: 3 minutes

Bull beef finishers will need up to €5.41/kg to break-even

Bull beef finishers will require a price of more than €5.00/kg to break-even in 2022.

That is according to Teagasc, which has published a series of budgets covering four types of production systems.

Its bull beef system budget looked at purchasing a 320-420kg weanling and finishing these in 6-months of 8-months.

Teagasc outlined that this system is high-risk and sensitive to buying and selling price and performance.

It advises farmers to secure market outlets for bulls before commencing this system.

Bull beef break-even price

Finishing system Silage & meals All concentrate and staw purchase 320-420kg weanling

 

6-month finishing

 

 

 

 

 

 

 

8-month finishing

Purchase weight October (kg) 320 420 420
Feeding period days – first winter (total) 230 180 235
Silage required (t) or straw @ approximately 1kg/day 5 tonnes 220 320
Meals – kg/head/day

–      Introduction period (20 days)

–      Finishing period

–      Average Daily Gain in finishing period (kg)

 

 

 

 

 

4.5

 

 

1.25

 

 

4

 

 

11.5

 

 

1.5

 

 

4

 

 

12

 

 

1.35

Sale date (assuming October purchase) Early June Mid-April Mid-June
Liveweight at sale (kg) 608 675 725
Carcass weight 346 385 421
Purchase weight 320 420 420
Assumed purchase price (€100kg LW) 294 281 281
Purchase price (€/head) 941 1180 1180
Plus costs: €/head

Variable costs (€)

Fixed costs (€)

 

535

140

 

673

115

 

901

153

Total costs (€) 675 788 1054
Break-even selling price required (€/head) 1616 1968 2234
Break-even selling price required (€/kg carcass) 4.67 5.11 5.31

 

Impact of autumn 2021 weanling prices on break-even price required in 2022:

 

Lower weanling prices Autumn 2021

–       €/100kg liveweight

–       Break-even price required €/kg carcass

 

Silage & meals

 

 

 

 

284

 

4.57

All meals

 

 

 

 

271

 

5.00

All meals

 

 

 

 

271

 

5.21

Assumed weanling price autumn 2021:

–       €/100kg liveweight

–       Break-even price required €/kg carcass

 

 

 

 

294

 

 

4.67

 

 

 

 

281

 

 

5.11

 

 

 

 

281

 

 

5.31

Higher weanling prices autumn 2021:

–       €/100kg liveweight

–       Break-even price required €/kg carcass

 

 

 

304

 

 

4.76

 

 

 

291

 

 

5.23

 

 

 

 

291

 

 

5.41

 

Beef budget

The state agency explained that it prepared this budget based on the following assumptions:

  • Very good levels of efficiency with a high average daily gain;
  • Meal cost at €300 per tonne;
  • Silage quality critical to performance – Well preserved o 20% DM-72% DMD. Cost of €30 per tonne;
  • Good animal health – dosing and other health costs at €8 per head;
  • Transport and marketing at €42 per head;
  • Half the interest cost on feed and animals borrowed at 7%;
  • No mortality assumed;
  • Selling price required only covers variable and fixed costs and does not include a margin.
Further reading:
- Advertisment -

Most Popular