Tullamore bulls - decision time: finish or sell weanlings?

Thousands of 2024-born bull and heifer weanlings continue to leave the country on a weekly basis with exporters working around the clock to keep weanlings moving to markets all across Europe and beyond.

Irish weanlings are in demand on international markets and smaller numbers coming out to sales have held weanling prices very steady over the last number of weeks.

The demand means that 2024 is going to be a record year for Irish live cattle exports with weanling exports running almost 20,000 animals ahead of the same period in 2023, a 63% rise.

Store cattle exports are following a similar trend with exports up 65% to 43,033 cattle so far in 2024. It’s plain and simple, suckler farmers are following the money and selling weanlings as opposed to taking the huge risk that is involved now with finishing animals. And who could blame them?

Finishing contracts

Factories have sat idle and done nothing to de-risk what smaller finishers have to take on so they are opting out and selling at the weaning stage.

Finishing contracts are as scarce as hens’ teeth or so we are told and unless you are heading for 1,000 animals and over it you hold little power when it comes to hammering out a feeding deal with a factory.

Buyers in Italy and Spain are anxious that the quality weanling isn’t being bred in mainland Europe anymore and that is pointing the boats to Irish shores for cattle.

The health and performance of Irish weanlings is a big bonus.

They are also willing to pay a premium price for the right type of cattle. Exporters are currently paying as high as €4.40/kg for Belgian Blue weanlings with €3.60-€4.00/kg easily achieved for lessor types

The Tullamore Farm system for the last seven years has been mostly finishing bulls under 16 months.

In spring 2024 a number of the 2023 born bulls were sold at the 12-month stage based on completing a budget and making the decision that selling was the better option.

This was the correct decision to take in 2023 with beef prices failing to increase sufficiently and actually dropping by 20 cent/kg during the summer months.

We decided to run the figures last week for the older twenty 2024-born bull weanlings.Table 1 outlines the figures and projections on performance and costs.

The current weanling price is the big determining factor. The top 1/3 of bull weanlings over the last three weeks on the Irish Farmers Journal Martbids system have come in consistently around the €3.60-€3.80/kg mark.

The weanlings on Tullamore Farm probably aren’t in the very top price bracket as most are maternally bred Limousin and Simmental.

Belgian Blue weanlings have probably been commanding some of the highest prices in mart rings followed by Charolais. Lighter weanlings will command a higher price per kg.

We have budgeted the 390kg weanling at €3.60/kg or €1,374 when all costs have been taken out of transport to mart and commission costs. Finishing meal is coming in at €300/tonne with 1.48 tonne required

Silage and straw are coming in at €120. Straw costs have risen to €30/bale and silage would still form part of the diet up until March.

Health costs are in at €25/head. Fixed costs including water, shed costs, machinery, etc are in at €100/head. Slaughter cost and factory charges come in at €45/head.

Total input costs are coming in at €884. The projected carcase weight from the bulls is 390kg. That means the breakeven price required for the finished bulls is €2258/head or €5.79/kg.

If we build a small margin of €100/head the beef price required increases to €6.05/kg.

The risk is just too high this winter. We have the potential to get a cheque for almost €30,000 for 20 weanlings or we can spend a further €17,000 to try and make a €2000 total margin on 20 bull weanlings.

There is also the question of what the chances are of hitting a €6.05/kg beef price by May 2025. Take out the crystal ball for that one.