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:
- Steers: Break-even price of €4.90/kg – Read article.
