Beef farmers cannot afford to pay more than €50/hd for Friesian bull calves this spring if they want to make €100/hd to cover the cost of their land and labour.

Irish Farmers Journal analysis of calf prices and beef prices shows that paying more than €50/hd will eat into the €100 margin over variable and fixed costs.

On page 38, our analysis delves into the detail of the value of Holstein Friesian male calves when finished as 24-month steers.

It shows that, at current calf prices and beef prices, any Friesian beef enterprise has questionable economics. However, tight margins are not just confined to dairy beef, with suckler beef systems also under extreme pressure in the current price climate.

Early calf sales are continuing to perform strongly at marts around the country, as Nathan Tuffy reports on page 69.

Friesian bull calves are making €50-€60/head, while Hereford and Angus heifer calves are making €150-180 with a €40 premium being paid on top of that for bulls.

Calf marts are gearing up for a busy four weeks, with over 40,000 calves expected to move through marts across the country in February.

The calf export market looks like it will continue the upward trend of the last few years, with Bord Bia forecasting another strong year for calf exports.