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HomeBeefBreak-even price of €4.48/kg for winter finishers - Teagasc
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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Break-even price of €4.48/kg for winter finishers – Teagasc

Teagasc has released a series of beef budgets for winter finishing steers, weanling to beef (steers and heifers), store to beef (autumn to autumn) and bull beef systems involving continental weanlings.

The state agency has examined the cost of production and break-even price per kg required for a Friesian, a Hereford-cross, and a continental-cross finished over the winter as steers.

Breed Friesian Hereford-X Continental-X
Purchase weight October (kg) 500 500 530
Silage required (tonnes) 5.5 5.5 5.0
Meal(kg/head/day) 4 4 4.5
Average daily gain (kg) 0.9 0.9 1.0
Liveweight at sale (kg) 626 626 670
Carcass weight 326 332 375
Purchase weight 500 500 530
Assumed purchase price (€100kg liveweight) 176 205 233
Purchase price (€/head) 880 1025 1235
Plus costs: (€/head)

–       Variable costs (€)

–       Fixed costs (€)

 

 

349

 

88

 

 

349

 

90

 

 

351

 

93

Total costs (€) 437 439 444
Breakeven selling price required (€/head) 1,317 1,464 1,679
Breakeven selling price required (€/kg carcass) 4.04 4.41 4.48

Autumn store prices

The state agency has outlined the effect of the autumn 2020 store prices on break-even prices required next spring.

Breed Friesian Hereford-X Continental-X
Lower store prices Autumn 2020

–       € per 100kg

–       Breakeven price required €/kg carcass

 

166

3.89

 

195

4.26

 

223

4.33

Assumed store price autumn 2020

–       € per 100kg

–       Breakeven price required €/kg carcass

 

176

4.04

 

205

4.41

 

233

4.48

Higher store prices autumn 2020

–       € per 100kg

–       Breakeven price required €/kg carcass

 

 

186

4.20

 

 

215

4.57

 

 

243

4.62

Assumptions:
  • Very good levels of efficiency with a high average daily gain;
  • Meal cost at €240 per tonne;
  • Silage quality critical to performance: Well preserved, 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.
Notes:
  • Using ad-lib meals over the last 80 days could be an option with cheaper meals;
  • High-risk system – sensitive to buying & selling price & performance achieved.
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