Input price hikes will result in an additional cost of up to €120/head to bring a dairy-beef animal through to slaughter off grass this year compared with 2021, Irish Farmers Journal analysis, shows.
On the Irish Farmers Journal Thrive demonstration farm in Cashel, Co Tipperary, the average net margin for 140 steers and heifers slaughtered at just over 19 months of age had reached €112/head.
Net margin ranged from €86/head for late-maturing bullocks up to €142/head for early-maturing bullocks.
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Expressed on a beef price, the increased costs translate to an extra 42c/kg carcase based on the average 288kg carcase achieved in 2021. This means a beef price north of €4.80/kg would be required to maintain current profit levels in what is regarded to be a low-cost, grass-based production system.
Increased concentrate costs incurred this winter combined with projected concentrate costs during the finishing phase at grass in autumn account for €31/head, while fertiliser price hikes will account for an additional €75/head.
The remaining cost increase comes from higher calf-rearing costs (€24/head) as well as increases in power, fuel and contractor charges of up to €15/head.
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Input price hikes will result in an additional cost of up to €120/head to bring a dairy-beef animal through to slaughter off grass this year compared with 2021, Irish Farmers Journal analysis, shows.
On the Irish Farmers Journal Thrive demonstration farm in Cashel, Co Tipperary, the average net margin for 140 steers and heifers slaughtered at just over 19 months of age had reached €112/head.
Net margin ranged from €86/head for late-maturing bullocks up to €142/head for early-maturing bullocks.
Expressed on a beef price, the increased costs translate to an extra 42c/kg carcase based on the average 288kg carcase achieved in 2021. This means a beef price north of €4.80/kg would be required to maintain current profit levels in what is regarded to be a low-cost, grass-based production system.
Increased concentrate costs incurred this winter combined with projected concentrate costs during the finishing phase at grass in autumn account for €31/head, while fertiliser price hikes will account for an additional €75/head.
The remaining cost increase comes from higher calf-rearing costs (€24/head) as well as increases in power, fuel and contractor charges of up to €15/head.
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