Some continental bull beef finishers could need up to €6.54/kg to breakeven in 2023.
That is according to Teagasc, which, in recent weeks, released a series of beef budgets for 2022/2023, covering four production systems.
Its budget involving a bull beef system with continental weanlings looks at purchasing and finishing animals in 6 months and 8-months and the impact of lower, assumed, and higher weanling prices in autumn 2022.
Selling prices required, it added, only covers variable and fixed costs and, therefore, does not include a margin.
The state agency 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 accounted for include €25/head for animal health (dosing, for example) and transport and marketing at a rate of €40/head.
It also included half the interest on feed and animals borrowed at 7% and assumed no mortality.
Teagasc advised farmers to “secure market outlets for bulls before commencing this system”.
It highlighted that this is a high-risk system, which is sensitive to buying and selling price and performance.
Moreover, some markets have upper carcass weight and age limits, which farmers should explore before committing to this system type.
Prices
Other articles on That’s Farming:
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.
Read more in this news article.
