HomeBeefAutumn-to-autumn finishers need up to €4.39/kg to break even
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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Autumn-to-autumn finishers need up to €4.39/kg to break even

Store-to-beef cattle finishers running autumn-to-autumn steer systems will need up to €4.39/kg in 2022.

That is according to a beef budget Teagasc released last week.

The state agency has published budgets for winter finishing steers, weanling-to-beef for heifers and steers, bull beef and an autumn-to-autumn steer system.

According to Teagasc’s Aidan Murray, its autumn-to-autumn system is the “most extensive” of all budgets.

It relies solely on performance from good quality grass silage over the winter and good performance off grass before slaughter next autumn.

He suggested that of all systems the state agency features, its autumn-to-autumn “offers probably the least risk to buyers”.

“If they have good silage and can exploit excellent performance, it minimises the need for expensive concentrates”.

Cattle finishers running autumn-to-autumn systems

Friesian                        Hereford-X                   Continental-X

Purchase weight October (kg)

 

Weight gain: Winter – 165 days

–        Summer – 180 days

 

–        Silage required (tonnes)

 

–        Liveweight at sale (kg)

 

–        Carcass weight (kg)

 

 

350

 

 

90

 

160

 

6.8

 

 

600

 

 

309

 

 

350

 

 

90

 

160

 

5.8

 

 

600

 

 

315

 

 

430

 

 

 

95

 

175

 

5.8

 

 

700

 

 

375

 

Purchase weight

 

Assumed purchase price (€100kg liveweight)

 

350

 

 

 

170

 

 

 

350

 

 

 

214

 

 

430

 

 

 

261

 

Purchase price (€/head) 595 749 1122
Plus costs: €/head

–        Variable costs (€)

–        Fixed costs (€)

 

273

185

 

273

 

190

 

273

 

203

Total costs (€) 458 463 476
Breakeven selling price required (€/head) 1053 1212 1598
Breakeven selling price required (€/kg carcass) 3.40 3.84 4.26

Impact of autumn 2021 store prices on breakeven prices required in autumn 2022:

Friesian Hereford-cross Continental-cross
Lower store prices autumn 2021:

–        € per 100 kg

 

–        Breakeven price required €/kg carcass

 

 

 

160

 

 

3.29

 

 

 

204

 

 

3.73

 

 

 

251

 

 

4.15

Assumed store price autumn 2021:

 

–        € per 100kg

 

 

 

–        Breakeven price required €/kg carcass

 

 

 

 

170

 

 

3.40

 

 

 

 

214

 

3.84

 

 

 

 

261

 

4.26

Higher store prices autumn 2021:

–        € 100 kg

 

–        Breakeven price required €/kg carcass

 

 

 

180

 

 

3.52

 

 

 

264

 

 

3.96

 

 

 

271

 

 

4.39

 

Assumptions for this budget:
  • Very good levels of efficiency with a high average daily gain;
  • Silage quality is critical to performance. Well preserved: 20% DM and 72% DMD.Cost of €30/t;
  • Grazing costs: €48/head;
  • Good animal health – dosing and other health costs at €11 per head;
  • Transport and marketing at €40 per head;
  • Half the interest cost on feed and animals borrowed at 7%;
  • No mortality assumed;
  • The selling price required only covers variable and fixed costs and does not include a margin.

Teagasc highlighted that farmers running this system must maximise performance at grass and minimise indoor feeding period on silage to control costs;

It outlined that no meals were fed in the budget. The body suggested it could be an option to feed up to 3 kg meals at grass for the last 45 days to sell earlier in a more favourable market.

Other budgets:

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