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