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HomeFarming NewsBreak-even prices for bull beef finishers - Teagasc
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.
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Break-even prices for bull beef 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 by 6-month finishing and 8-month finishing bull beef systems.

Figures are based on purchasing a 320-420kg weanling.

Finishing system Silage and meals

 

 

 

All concentrate and straw

 

6-month

finishing

 

 

 

8-month finishing

Purchase weight

 

October (kg) – First winter (total)

 

320

 

230

420

 

180

420

 

235

Silage required (t) or straw @ ~ 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 (kg) 346 385 421
Purchase weight 320 420 420
Assumed purchase price (€/100kg LW) 264 243 243
Purchase price (€/head)   845 1021 1021
Plus costs: (€/head)

–       Variable costs (€)

–       Fixed costs (€)

 

472

 

137

 

557

 

109

 

742

 

146

Total costs (€) 609 666 888
Breakeven selling price required (€/head) 1,454 1,687 1,909
Breakeven selling price required (€/kg carcass) 4.20 4.38 4.53

 

The state agency has outlined the effect of 2019 autumn weanling prices on break-even prices required in 2021.

Silage & meals All meals All meals
Lower weanling prices Autumn 2019

–       € per 100kg liveweight

–       Breakdown price required €/kg carcass

 

254

 

4.11

 

233

 

4.28

 

 

233

 

4.43

 

Assumed weanling prices Autumn 2019

–       € per 100kg liveweight

–       Breakdown price required €/kg carcass

 

264

 

4.20

 

243

 

4.28

 

243

 

4.53

Higher weanling prices Autumn 2019

–       € per 100kg liveweight

–       Breakdown price required €/kg carcass

 

274

 

4.30

 

253

 

4.50

 

253

 

4.64

 

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 €35 per head;
  • Transport and marketing at €40 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:
  • Secure market outlet required for bulls before commencing system ;
  • Some markets have upper carcass weight and age limits;
  • High-risk system – sensitive to buying & selling price & performance achieved.
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