Farmers who are buying 350-430kg store cattle this autumn for finishing next autumn (2024) will need a beef price of €4.37-5.31/kg (depending on the cattle type) to break even, according to Teagasc guideline figures.
The figures were outlined at a Teagasc suckler and beef farmer information event which took place at Kildalton Agricultural College.
As well as the costings on buying cattle for finishing next autumn, a cost analysis on buying 500-540kg store bullocks to finish this winter (2023/24) was also provided to farmers.
The table below outlines the figures for farmers purchasing cattle this autumn for finishing next autumn:
It was emphasised at the event that the costs will be different on every farm and farmers should use the budget as a template and include the costs relevant to their farm or system.
The Teagasc guideline figures are broken down into three categories: Continental-cross; Hereford-cross and Friesian.
The table above uses an assumed average purchase weight of 350kg for Friesian and Herefords with an assumed purchase price of €1.72/kg and €2.24/kg respectively.
An assumed purchase weight of 430kg is used for continentals with an assumed purchase price of €2.75/kg.
The table below shows the impact of higher and lower store cattle prices on the breakeven selling price required:
Farmers were reminded that silage quality is critical to animal performance over the winter. In the above costings, silage with a dry matter (DM) of 20% is assumed with a DMD of 72% and a cost of €45/t DM.
Transport and marketing costs were included at €40/head. Dosing and other animal health costs were factored in at €11/head with no mortality assumed. Grazing costs were factored in at €48/head.
The costings also accounted for half the interest cost on feed and animals borrowed at 7%. Meal costs were factored in at €330/tonne.
The selling prices outlined in the Teagasc budget only covers variable and fixed costs and does not include a margin.
While the costs will vary from farm to farm, the key point is for farmers to do their own budgets with their own costs and be realistic with costs.
The post Table: Cost analysis on buying cattle to finish next Autumn appeared first on Agriland.ie.