The financial performance in the Tipperary dairy calf-to-beef demonstration farm run by Dawn Meats, Shinagh Estates and Teagasc is projected to fall by about €100,000 head in 2026.

The reduction in the net margin figure comes following a record year for beef price in 2026 and a significant increase in calf prices.

The average price of over 440 calves purchased in 2026 increased by €155/head or 58% to €422.

The projected value of animals finished on farm is €85/head lower at €2,122/head. Padraig French, Teagasc, told a large attendance of over 1,000 farmers that the projected financial figures are robust when it comes to variable costs with a high percentage of these already accounted for.

Beef price is harder to predict with figures based on a base price of about €6.40/kg while the cost of the drought will depend on how longs it lasts. The projected net margin in 2026 is just shy of €70,000 or €546/ha.

This covers labour costs of almost €90,000, 20% of land rental costs and full depreciation and interest costs.

He said that the system is modelled on an owned farm with the aim of establishing a blueprint that has the ability to generate a positive return per hour worked.

The projected return on labour is influenced by excellent technical efficiency by farm manager Jack Spillane and Stephen Baskin. It is projected at €47/hour for 2026 compared to €74/hour in 2025.

The farm is also looking to develop greater integration between dairy and beef farms in terms of delivering calves with better terminal traits. Calves are purchased from nine farmers with prices influenced by the commercial beef value (CBV) figure and liveweight at sale.

There is a €1.50price adjustment for every €1 change in CBV while a payment of €8/kg is made for every kilo that a calf weighs above 55kg.