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Beef farmers planning to finish cattle this winter are advised to complete a break-even budget to ensure feed costs are being covered.
Speaking at last week’s planning for performance events, CAFRE beef and sheep adviser Dominic Mason outlined the impact of higher input prices on winter feeding strategies.
“Silage quality is down on previous years. We are seeing a lot more silage samples being analysed with average feed quality around 9.5 to 10 ME and 10% to 12% crude protein.
“Ideally, you want silage around 10.5 to 11 ME and 14% protein. Lower-quality forage will require higher levels of concentrate to finish cattle.
“Feed accounts for 70% of variable costs and the price of a beef ration has increased by 33% on last autumn, yet beef price has only risen 9%.
“Lower-quality forage will also have knock-on effects on the growth rates in store cattle, particularly if farmers opt for silage-only diets this winter.
“Get your silage tested now and see what your options are for feeding cattle this winter” said Mason.
Store cattle
Where farmers are considering the merits of selling cattle now, or storing until spring, Mason outlined the economics of 300kg animals on a forage-only diet based on silage analysis results this year.
Where cattle are wintered on 25kg/day of low-quality forage, costing £30/t, forage cost 75p/day or £135 over a six-month period.
As a comparison, store cattle fed 21kg/day of average-quality silage costing £35/t, daily forage costs were 71p/day or £132 for the six-month period.
“Direct feed costs are similar with the two forage diets, but weight gain will be different. The cattle on low-quality forage will have negligible weight gain.
They will grow frame, but they will be no heavier coming out of the shed than they went in. These cattle will have lost money and lifetime performance may also be negatively affected.
The cattle on the average-quality silage will be somewhere in the region of 45kg heavier, but will struggle to cover their feed costs if sold in spring,” Mason stated.
Meal costs
He went on to compare the same animals if concentrate had been fed, using a purchase cost of £360/t.
On the poor silage, meal is fed at 3kg/day reducing to 2kg/day on average silage. Forage intakes are reduced to 15kg in lieu of meal fed.
“Winter feed costs rise to £275 on the low-quality silage and £224 on the average-quality forage. But weight gain is significantly increased at 0.6kg/day, bringing turnout weight to 408kg in both instances.
“Valuing calves at 280p/kg in October makes animals worth £840 going into the winter. If selling next spring, at the outlined meal levels, calves require a break-even of £1,064 or 261p/kg to cover feed costs.
“There are other things to keep in mind such as labour, fuel, cashflow and housing space.
“Each calf will also generate around 500 gallons of slurry over winter which can be used as a fertiliser next year.”
Beef finishing
Mason also presented a simple budget based on feed costs for a 550kg steer intensively finished in 100 days.
Steers needs to generate £1,635 or 437p/kg, simply to cover feed costs
Purchased in October at 235p/kg, steers cost £1,293. Silage costing £35/t is fed at 25kg/day, along with an average 6.5kg/day of concentrate costing £360/t. Feed costs come to £322 along with vet and miscellaneous fees of £20.
Based on a daily gain of 1.2kg/day, which is at the top end of performance for finishing steers, cattle will yield a 382kg carcase.
This means the steers needs to generate £1,635 or 437p/kg, simply to cover feed costs. No fixed costs such as diesel, electricity, water, labour or margin are included.
“The budget highlights how fine margins are likely to be when finishing cattle this winter. Do your sums carefully” Mason concluded.
The importance of completing a finishing budget should also extend to sheep farmers with lambs to sell, as well as those who specialise in store lambs.
“The principles are the same for lambs as with cattle. Get a handle on what weight lambs are now, what they are potentially worth, what price meal is, feed rates and typical liveweight gain.
“You can very quickly work out whether or not there is a return from meal finishing lambs in the coming weeks.
“It will take around 8kg of concentrate to yield 1kg of lamb carcase. If meal costs £380/t, it costs 304p/kg to gain 1kg of carcase.
“At a factory price of 500p/kg and 48% kill-out, lambs are generating 240p/day. Therefore, meal is uneconomical in this situation. But if grass is in short supply, meal will be needed to shorten the finishing period,” Mason stated.
Other speakers included Co Armagh vet and sheep farmer Paul Crawford, who is spearheading a programme to address sheep scab in Northern Ireland.
“There are a lot more cases of sheep scab in Northern Ireland than farmers and department veterinary officials believe.
From a survey of 10,000 sheep farmers, we had 44 farmers sharing their experiences with sheep scab, which was significantly more than official statistics indicate,” said Crawford.
Set up in 2019, the Sheep Scab Control Group is a voluntary initiative that offers farmers financial aid and veterinary advice with diagnosing, treating and controlling scab.
“Scab is a mite and can survive off the host in wool lodged on fences, hedges, gates, etc, for 16 to 17 days.
Sheep do not have to be shedding their fleece, or repeatedly scratching, to have these mites present. Autumn is a key period for the mites to multiply as the fleece grows.”
According to Crawford, effective control is generally limited to dipping via the plunge bath. He advised against using a mobile sheep shower.
“First off, it is illegal to use the licensed product for scab control in a sheep shower and this is now being heavily enforced in Britain. Secondly, showers do not give 100% kill, thereby leading to mites that can develop resistance.
“It is also a waste of time and money if it does not give effective cover.”
Getting involved
Farmers with scab are encouraged to work with the control group. “If scab is present in the flock, it won’t go away on its own. Talk to us and organise with your own vet to take a blood or skin sample, which will be paid for.
“We will work with you to draw up a plan for treatment and help with this cost.
“We can also offer advice on future control to keep it out of the flock,” added Crawford.
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