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“Taking on calves from Jersey and Kiwi-cross herds make no financial sense whatsoever. It is a futile practice that will never turn a profit for a beef farmer," ICSA beef chair Edmund Graham has said.
His comments are in response to Pearse Kelly of Teagasc, who said a dairy farmer would need to pay a beef farmer €140 on top of a Jersey-cross calf to finish him as a 24-month steer at current beef prices.
However, the ICSA leader believes that the Teagasc figures are conservative, as they don't account for the risk of being caught with bulls going over age and nobody to buy them.
“The figures just don’t add up. Indeed, I would argue the Teagasc figure is on the low side and a beef man would need a lot more than the €140 suggested," Graham said.
"It’s time to face economic reality with this one and stop taking on these calves once and for all. Farmers need to be very cautious too to avoid beef-cross Jersey-influenced calves," he added.
The difference between Ireland and New Zealand, he said, is that New Zealand does not have a beef industry.
“I am inundated with calls from farmers who are being turned away from factories with O grade bull beef.
"In the last week, I estimate I have had calls from farmers who have some 2,000 head of Holstein bull beef who cannot find a factory to take them.”
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