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HomeBeefWinter finishers will need €6.12/kg to cover all costs - 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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Winter finishers will need €6.12/kg to cover all costs – Teagasc

According to Teagasc’s revised figures, beef winter finishers will require €6.12/kg to cover all costs.

That is the information it provided to attendees at its 2022 open day in Grange on Tuesday, July 5th, 2022.

It has made the calculation on the basis that 2022 store cattle prices are approximately 40-50c/kg live weight greater than last year.

Furthermore, variable and fixed costs have hiked by 50% and 42%, respectively, according to the state agency.

Moreover, it told attendees that beef prices next autumn and spring would be the “main” issue facing beef farmers in 2022.

Overall, based on the assumptions in this analysis, total production costs have increased to €6.12/kg carcass weight, the state agency told farmers and industry stakeholders yesterday.

It reports that total product costs stood at €4.90/kg in 2021, €1.22/kg behind the above 2022 price calculation.

Teagasc produces a series of winter finishing budgets each year to provide “an indication” of costs and margins attainable in these systems.

At the event, it explained to attendees that “it would be prudent to have a contract with processors to de-risk winter finishing systems”.

It provided a table, comparing 2021 and 2022 predicted figures. It has covered purchase weight, purchase price, cost of store cattle, total costs – fixed and variable, carcass weight and total production costs.

Winter Finishers
Source: Teagasc

Key points: Calculating budgets:

  • Meal: €260/t in 2021, and €400/t for 2022;
  • Fertiliser prices: 2.5 times higher on average;
  • Contractor charges: increase by 25%;
  • Other variable and fixed costs: minor increases;
  • Input level: Assumes same volume of inputs on-farm.
Single Suckling Enterprises

“Average direct costs per cow are forecast to increase from €630 in 2020 to €932 in 2022, an increase of 48% in two years.”

That was one of the main messages Teagasc conveyed at its Beef 2022 open day on Tuesday. July 5th, 2022.

The state agency told attendees that single suckling enterprises are the predominant cattle enterprise in Ireland, operated on over 31,000 farms.

Read more on this farming news article.

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