Last week we looked at the profitability in weanling, under-16-month bull and steer systems. This week we look at the remaining systems in the programme.
If a farmer’s system is defined as under-20-month bulls this does not mean that this is all that is produced, but it is the predominant system on the farm.
There are only two farmers producing store cattle in the programme, David Walsh and Patrick Drohan, both of whom are moving to finish these to beef.
Both farms are on quite dry ground in the southeast. The farmers have managed to keep costs low.
David achieved the highest gross margin at €1,083/ha, some €426/ha more than Patrick. However, the stocking rate carried by David was 19% higher than Patrick’s.
Moving to finishing more stock on both farms should help to increase stocking rate and output in the future.
Strong margins
There are six farmers in the programme producing bulls under 20 months of age.
While many of them produce bulls under 16 months also, the predominant system is under-20-month production.
As we saw last week with the under-16-month finishers, the older bull system has performed very strongly in 2015, with the highest margin of €1,590 being achieved.
It should be noted that Donie Aherne’s system also incorporates some level of buying in additional bulls for finishing. This helps to boost output on the farm, but increases feed costs considerably, similar to Des and Frank Beirne’s system.
Keeping feed costs low
Willie Treacy achieved the second-highest gross margin, despite having the highest stocking rate. The feed bill on his farm is low due to the high use of grazed grass in the system.
Cathal Crean utilises a second season at grass, like most others in the system, to keep feed costs low prior to finishing. He also grows his own cereals on farm to keep control of costs.
Pat O’Reilly is an exception, as he zero-grazes grass in the shoulders of the year to feed to housed stock. This has reduced the concentrate supplementation and has acted as a management tool to keep grass in the diet of bulls during the second season.
System difficulties
It should be noted that in 2015, all of these producers consulted with their factory agents to ensure the marketability of these over-16-month bulls.
With stricter rules on carcase weights and age coming down the tracks, it is likely that some of the farmers will move to slaughtering bulls younger and at lighter carcase weights in order to meet the target specification.
However, one or two may continue down the road of the over-16-month bull, depending on talks with factories.
For farmers who find themselves in a similar situation, it is vital that they talk to their beef processors before embarking on the finishing regime this year and only do so with an understanding that there will be demand for heavier or aged bulls.
For those in the programme who move to finishing bulls earlier or at lighter weights, there will be a knock-on effect on output in terms of the number of kilos they can get out the farm gate. In some cases, they will explore the option of increasing cow numbers or buying in additional bulls for slaughtering through the year to keep output high.
Store producers
– Alan Dillon
David and Patrick are located in the southeast, where traditionally there is a good trade for store bullocks and heifers. Both farms were characterised at the beginning of phase two as having low stocking rates (1.2 to 1.3 LU/ha), which consequently led to low output and low gross margins, despite variable costs being on the low side.
The main changes to be made on these farms were:
To increase the stocking rate to over 2 LU/ha.Improved genetics – use of five-star bulls.Good maternal cows – capable of achieving high weaning weights.Increased number of paddocks – two to three days max per grazing division.Focus on reseeding – use top grass varieties and improve lime, phosphorus and potassium status.Aim to achieve as much weight gain as possible from grass – early turnout.Weekly measurement of grass – helps target paddocks requiring improvement.Draw up herd health plan.Under-20-month bull producers
– Catherine Egan
There are six farmers in this group finishing bulls at 17 or 18 months of age.
On these farms, gross margin averaged €1,178/ha in 2015 compared with €980/ha in 2014. Variable costs increased by €100/ha to €946/ha in 2015.
Considering there are higher volumes of meal being fed during the finishing period, it is a relatively good level of performance.
Despite the industry messages, three of these farmers finished in the top 10 profit monitors as profiled a fortnight ago.
However, it should be noted that many of this group would have made contact with their respective processors about producing these bulls and would have agreed killing terms.
This group had a high stocking rate of 2.42 LU/ha, up from 2.24 LU/ha, and also a high beef output of 944 kg/ha, up from 774kg/ha in 2014.
Housing these bulls prior to finishing enables a higher number of cows to be carried during summer months, which in turn leads to a higher stocking rate.
High whole-farm stocking rate > 2.4 LU/ha.Aim to turn out yearling stock to grass early, maximising days at grass.Maximise daily liveweight gain during weanling and store periods, to achieve maximum weight gain from grass.High-quality silage is required to reduce meal input to weanlings, stores and finishing cattle.Achieving a tight calving spread allows bulls to be housed in groups of similar weight.Trading finishing
systems
– Peter Lawrence
There are two specialised farmers operating trading-to-beef systems in the BETTER farm programme.
Sean Power runs a predominantly continental heifer finishing system and Billy Glasheen runs a dairy-cross-beef steer finishing system.
On these two farms, the gross margin averaged €785/ha in 2015, which is a 9% increase from 2014. Stocking rate on these farms is relatively high at 2.45 LU/ha when compared with some of the suckler systems.
Despite these farms making big improvements on grassland management and increasing farm stocking rates, gross margins have been slow to increase over the last three years.
Sean has increased the gross margin on his beef enterprise by 21%, from €707/ha in 2012 to €856 in 2015, since joining the programme.
This has been achieved mainly by increasing the stocking rate on his farm from 1.86 LU/ha in 2012 to 2.36 LU/ha in 2015 by buying in and finishing more heifers off the farm to increase output. Cattle sales have increased from 225 in 2012 to 409 in 2015 and purchases from 182 to 357.
While beef price has increased slightly over the three-year period, the cost of purchasing the stores has really impacted on profits.
Store prices have increased from €2.12/kg LW in 2014 to €2.40/kg LW in 2015, which equates to €90 extra per head on a 360kg heifer.
The 13% increase affected gross margin by approximately €360/ha compared with 2014.
System characteristics
Increase farm output by increasing stocking rate.Maximise liveweight gains from grazed grass.Short finishing periods – heifers 60 to 80 days and bullocks 90 to 110 days.Purchase price is very important.
Last week we looked at the profitability in weanling, under-16-month bull and steer systems. This week we look at the remaining systems in the programme.
If a farmer’s system is defined as under-20-month bulls this does not mean that this is all that is produced, but it is the predominant system on the farm.
There are only two farmers producing store cattle in the programme, David Walsh and Patrick Drohan, both of whom are moving to finish these to beef.
Both farms are on quite dry ground in the southeast. The farmers have managed to keep costs low.
David achieved the highest gross margin at €1,083/ha, some €426/ha more than Patrick. However, the stocking rate carried by David was 19% higher than Patrick’s.
Moving to finishing more stock on both farms should help to increase stocking rate and output in the future.
Strong margins
There are six farmers in the programme producing bulls under 20 months of age.
While many of them produce bulls under 16 months also, the predominant system is under-20-month production.
As we saw last week with the under-16-month finishers, the older bull system has performed very strongly in 2015, with the highest margin of €1,590 being achieved.
It should be noted that Donie Aherne’s system also incorporates some level of buying in additional bulls for finishing. This helps to boost output on the farm, but increases feed costs considerably, similar to Des and Frank Beirne’s system.
Keeping feed costs low
Willie Treacy achieved the second-highest gross margin, despite having the highest stocking rate. The feed bill on his farm is low due to the high use of grazed grass in the system.
Cathal Crean utilises a second season at grass, like most others in the system, to keep feed costs low prior to finishing. He also grows his own cereals on farm to keep control of costs.
Pat O’Reilly is an exception, as he zero-grazes grass in the shoulders of the year to feed to housed stock. This has reduced the concentrate supplementation and has acted as a management tool to keep grass in the diet of bulls during the second season.
System difficulties
It should be noted that in 2015, all of these producers consulted with their factory agents to ensure the marketability of these over-16-month bulls.
With stricter rules on carcase weights and age coming down the tracks, it is likely that some of the farmers will move to slaughtering bulls younger and at lighter carcase weights in order to meet the target specification.
However, one or two may continue down the road of the over-16-month bull, depending on talks with factories.
For farmers who find themselves in a similar situation, it is vital that they talk to their beef processors before embarking on the finishing regime this year and only do so with an understanding that there will be demand for heavier or aged bulls.
For those in the programme who move to finishing bulls earlier or at lighter weights, there will be a knock-on effect on output in terms of the number of kilos they can get out the farm gate. In some cases, they will explore the option of increasing cow numbers or buying in additional bulls for slaughtering through the year to keep output high.
Store producers
– Alan Dillon
David and Patrick are located in the southeast, where traditionally there is a good trade for store bullocks and heifers. Both farms were characterised at the beginning of phase two as having low stocking rates (1.2 to 1.3 LU/ha), which consequently led to low output and low gross margins, despite variable costs being on the low side.
The main changes to be made on these farms were:
To increase the stocking rate to over 2 LU/ha.Improved genetics – use of five-star bulls.Good maternal cows – capable of achieving high weaning weights.Increased number of paddocks – two to three days max per grazing division.Focus on reseeding – use top grass varieties and improve lime, phosphorus and potassium status.Aim to achieve as much weight gain as possible from grass – early turnout.Weekly measurement of grass – helps target paddocks requiring improvement.Draw up herd health plan.Under-20-month bull producers
– Catherine Egan
There are six farmers in this group finishing bulls at 17 or 18 months of age.
On these farms, gross margin averaged €1,178/ha in 2015 compared with €980/ha in 2014. Variable costs increased by €100/ha to €946/ha in 2015.
Considering there are higher volumes of meal being fed during the finishing period, it is a relatively good level of performance.
Despite the industry messages, three of these farmers finished in the top 10 profit monitors as profiled a fortnight ago.
However, it should be noted that many of this group would have made contact with their respective processors about producing these bulls and would have agreed killing terms.
This group had a high stocking rate of 2.42 LU/ha, up from 2.24 LU/ha, and also a high beef output of 944 kg/ha, up from 774kg/ha in 2014.
Housing these bulls prior to finishing enables a higher number of cows to be carried during summer months, which in turn leads to a higher stocking rate.
High whole-farm stocking rate > 2.4 LU/ha.Aim to turn out yearling stock to grass early, maximising days at grass.Maximise daily liveweight gain during weanling and store periods, to achieve maximum weight gain from grass.High-quality silage is required to reduce meal input to weanlings, stores and finishing cattle.Achieving a tight calving spread allows bulls to be housed in groups of similar weight.Trading finishing
systems
– Peter Lawrence
There are two specialised farmers operating trading-to-beef systems in the BETTER farm programme.
Sean Power runs a predominantly continental heifer finishing system and Billy Glasheen runs a dairy-cross-beef steer finishing system.
On these two farms, the gross margin averaged €785/ha in 2015, which is a 9% increase from 2014. Stocking rate on these farms is relatively high at 2.45 LU/ha when compared with some of the suckler systems.
Despite these farms making big improvements on grassland management and increasing farm stocking rates, gross margins have been slow to increase over the last three years.
Sean has increased the gross margin on his beef enterprise by 21%, from €707/ha in 2012 to €856 in 2015, since joining the programme.
This has been achieved mainly by increasing the stocking rate on his farm from 1.86 LU/ha in 2012 to 2.36 LU/ha in 2015 by buying in and finishing more heifers off the farm to increase output. Cattle sales have increased from 225 in 2012 to 409 in 2015 and purchases from 182 to 357.
While beef price has increased slightly over the three-year period, the cost of purchasing the stores has really impacted on profits.
Store prices have increased from €2.12/kg LW in 2014 to €2.40/kg LW in 2015, which equates to €90 extra per head on a 360kg heifer.
The 13% increase affected gross margin by approximately €360/ha compared with 2014.
System characteristics
Increase farm output by increasing stocking rate.Maximise liveweight gains from grazed grass.Short finishing periods – heifers 60 to 80 days and bullocks 90 to 110 days.Purchase price is very important. 
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