Genetically superior dairy-bred calves are delivering a carcase value of €183/head more than their genetically inferior counterparts, but are killing out at €72/head below the cost of production, new analysis by ABP, ICBF and Teagasc has found.

Three years’ worth of slaughter data under the Dairy Beef Efficiency Programme from the ABP research farm in Clonegal, Co Wicklow show that calves from high genetic merit Hereford sires can deliver €183 more than calves from the poorest performing Hereford sires.

Applying the same criteria to Angus sires, the gap is €173.

While ABP could not give production costs from their research farm, Teagasc’s Padraig French said the same calves in Johnstown Castle were incurring variable costs of €2.50/kg and calf costs of approximately €0.50/kg of carcase.

He did not include fixed costs, but recent Teagasc figures show fixed costs in dairy-calf systems equate to approximately €233/head or €0.75/kg on a 300kg carcase. With the best Hereford carcases in the trial killing out at 327kg, O+4-, and an all-in cost of production of €3.75/kg, that carcase costs €1,226/kg to produce. In today’s market, assuming a steer base price of €3.45/kg minus €0.12/kg for grading, plus €0.20/kg for quality assurance, the same carcase is valued at just €1,154. That’s €72/carcase below the cost of production for the genetically superior calves and €255/carcase below costs for inferior calves.