With annual overheads of €35,000 for fixed costs plus €35,000 for labour, the Newford Herd demonstration farm needs to generate a gross margin of €1,200/ha or more every year to cover production costs. The running costs of the farm were outlined to the large crowds who attended Wednesday's open day at Athenry.
Farms walks at the Newford open day take place every half hour until 7pm. pic.twitter.com/nOCGLzrvDy
— FJ Beef (@FJBeef) May 25, 2016
Set up costs included €140,000 for purchasing the 100-cow breeding herd along with €30,000 spent on infrastructure, which is depreciated over a seven-year loan term. Vet costs for the herd are €80 per cow.
Around 80% of the herd are killed off grass at 18 to 20 months of age with steers averaging €1,240/head last autumn and heifers averaging €1,172 at sale.
All replacements are purchased as calves from neighbouring dairy units and contract-reared locally for €1.25/day. By the time they reach calving, total rearing costs are at €1,250/head.
Adam Woods of @teagasc talks about grass management at Nexwford Farm pic.twitter.com/1lIBm5fzsg
— FJ Beef (@FJBeef) May 25, 2016
Breeding started on 1 May and 70 cows have been bred to AI. To date, 144 round bales of silage have been made from surplus grass at a cost of €12/bale with 40 acres of first cut ready to cut over the next fortnight.
For more on the Newford Herd, see page 41 of this week's print edition.
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