The latest research into the viability of dairy calf-to-beef systems is startling to say the least. Recent analysis carried out by Teagasc on dairy calf-to-beef farm data returned figures showing what beef farmers should be paying for dairy calves this spring.
Based on each system returning a net margin of €200/LU, the analysis showed that the value of an average Angus X Friesian bull calf for a 24-month system is €91, while an Angus X Friesian heifer calf for a 20-month system is worth about €125.
Worryingly, as we go further down the dairy genetics route, the value of these calves drops significantly.
The analysis showed that a pure Friesian bull calf for 24-month beef was worth -€39 while a Jersey X Friesian bull calf for a similar system is worth -€135. Essentially, farmers would have to be paid to take these calves away.
It is worth saying that this analysis is of course based on the average dairy calf. In reality, there are calves out there that can perform to a higher level than the analysis allows for. These calves are obviously worth more in a sales ring.
Hopefully the new dairy beef index will assist in identifying these animals. However, on the whole, these figures will be hard for any beef farmer to ignore.
Reaction
As the calving season gets into full swing on dairy farms across the country and as lot numbers in calf sales begin to rise towards their mid-March peak, it will be interesting to see how dairy calf-to-beef farmers will react.
In 2018, 13 of the Teagasc/Irish Farmers Journal BETTER Farm beef challenge participants ran a dairy calf system in some shape or form. The view for 2019 is looking somewhat different.
Brian Doran, Wicklow‘It’s not for me’
Brian purchased a total of 20 dairy animals in 2018. Ten Friesian bulls were purchased as calves while 10 Friesian heifers were purchased as runners at the back end of the year.
The 10 calves were reared by another farmer for €6/head/week and stood at €380/head when they arrived back to his farm in late spring.
“They were a bit of a nuisance. They had to be left on their own and were always an extra batch of stock to move around.”
All 20 will go back out to grass this year with his own stores and sold as heifer and steer beef next autumn.
“I’m definitely not buying any dairy calves this spring. Instead, I bought 18 nice continental weanlings, around 330kg, for €660/head. These almost work out as cheap as the dairy calves when you put them together.”
Brian Doran's calves.
That said, if beef and store prices were to change, Brian wouldn’t rule out the system in future.
Tom Bolger, Carlow‘I’d like to stay at it’
Tom purchased 58 calves last spring and is hoping to purchase the same, if not slightly more this year – but the price must be right.
“I can’t buy them for the same price I bought them for last year. They averaged about €300/head last year, ranging from €400/head for Simmental X heifers to €230/head for Friesians. It’s alright buying the calves, but the bags of milk replacer and meal don’t be long adding up.”
Tom has developed a good system for rearing calves, with an automatic feeder installed to significantly reduce labour. That said, he did experience some extra health problems with the higher number of calves in the yard last spring.
“All in all, I’d like to stay at it because I don’t see much point chopping and changing systems. There’s also 10 less cows to calve this spring.
Tom Bolger's calves.
"The calves performed very well for the year too.
“Without doubt, the price will have to come down but as of yet, there is no indication whether that will happen or not.”
Harry Lalor, Laois‘The price must
come down’
Last year, Harry purchased 52 calves. Calves are usually purchased in three batches, with a 20-teat group feeder in place to simplify the process. While it’s a system he would like to stick at, unfortunately the economics just aren’t adding up at present.
“I’d more or less consider not rearing calves this year unless the price halves. I really don’t see any point of being in an enterprise if you’re not making money. Right now it’s not even nearly paying.
Harry Lalor's calves.
“I sold animals recently and looking at the returns, I’m keeping an animal for nearly two years to make no more than €100 on it.”
In conclusion, the decision to purchase calves will be based solely on whether the price comes down sufficiently.
John & James Flaherty, Kerry‘I’d rather push up cow numbers’
In 2018, the Flahertys purchased 30 dairy calves, mainly Hereford X Friesian. The farm plan originally consisted of a herd of 50 suckler cows and buying in 30 dairy calves each year to boost numbers. Given the extremely challenging year, this plan is set to change.
“At the moment, I have four pens of dairy bulls and I can’t move them. Right now, I’d rather push up cow numbers towards the 60-mark and drop the calves. I firmly believe I would get more out of them.
“So far, the under 16-month bull and 22-month heifer system is working well.”
Flaherty family's calves.
As previously discussed, the farm suffered a bad bout of calf pneumonia during the spring. The higher-than-normal number of calves in the sheds at the time did not help the issue.
The latest research into the viability of dairy calf-to-beef systems is startling to say the least. Recent analysis carried out by Teagasc on dairy calf-to-beef farm data returned figures showing what beef farmers should be paying for dairy calves this spring.
Based on each system returning a net margin of €200/LU, the analysis showed that the value of an average Angus X Friesian bull calf for a 24-month system is €91, while an Angus X Friesian heifer calf for a 20-month system is worth about €125.
Worryingly, as we go further down the dairy genetics route, the value of these calves drops significantly.
The analysis showed that a pure Friesian bull calf for 24-month beef was worth -€39 while a Jersey X Friesian bull calf for a similar system is worth -€135. Essentially, farmers would have to be paid to take these calves away.
It is worth saying that this analysis is of course based on the average dairy calf. In reality, there are calves out there that can perform to a higher level than the analysis allows for. These calves are obviously worth more in a sales ring.
Hopefully the new dairy beef index will assist in identifying these animals. However, on the whole, these figures will be hard for any beef farmer to ignore.
Reaction
As the calving season gets into full swing on dairy farms across the country and as lot numbers in calf sales begin to rise towards their mid-March peak, it will be interesting to see how dairy calf-to-beef farmers will react.
In 2018, 13 of the Teagasc/Irish Farmers Journal BETTER Farm beef challenge participants ran a dairy calf system in some shape or form. The view for 2019 is looking somewhat different.
Brian Doran, Wicklow‘It’s not for me’
Brian purchased a total of 20 dairy animals in 2018. Ten Friesian bulls were purchased as calves while 10 Friesian heifers were purchased as runners at the back end of the year.
The 10 calves were reared by another farmer for €6/head/week and stood at €380/head when they arrived back to his farm in late spring.
“They were a bit of a nuisance. They had to be left on their own and were always an extra batch of stock to move around.”
All 20 will go back out to grass this year with his own stores and sold as heifer and steer beef next autumn.
“I’m definitely not buying any dairy calves this spring. Instead, I bought 18 nice continental weanlings, around 330kg, for €660/head. These almost work out as cheap as the dairy calves when you put them together.”
Brian Doran's calves.
That said, if beef and store prices were to change, Brian wouldn’t rule out the system in future.
Tom Bolger, Carlow‘I’d like to stay at it’
Tom purchased 58 calves last spring and is hoping to purchase the same, if not slightly more this year – but the price must be right.
“I can’t buy them for the same price I bought them for last year. They averaged about €300/head last year, ranging from €400/head for Simmental X heifers to €230/head for Friesians. It’s alright buying the calves, but the bags of milk replacer and meal don’t be long adding up.”
Tom has developed a good system for rearing calves, with an automatic feeder installed to significantly reduce labour. That said, he did experience some extra health problems with the higher number of calves in the yard last spring.
“All in all, I’d like to stay at it because I don’t see much point chopping and changing systems. There’s also 10 less cows to calve this spring.
Tom Bolger's calves.
"The calves performed very well for the year too.
“Without doubt, the price will have to come down but as of yet, there is no indication whether that will happen or not.”
Harry Lalor, Laois‘The price must
come down’
Last year, Harry purchased 52 calves. Calves are usually purchased in three batches, with a 20-teat group feeder in place to simplify the process. While it’s a system he would like to stick at, unfortunately the economics just aren’t adding up at present.
“I’d more or less consider not rearing calves this year unless the price halves. I really don’t see any point of being in an enterprise if you’re not making money. Right now it’s not even nearly paying.
Harry Lalor's calves.
“I sold animals recently and looking at the returns, I’m keeping an animal for nearly two years to make no more than €100 on it.”
In conclusion, the decision to purchase calves will be based solely on whether the price comes down sufficiently.
John & James Flaherty, Kerry‘I’d rather push up cow numbers’
In 2018, the Flahertys purchased 30 dairy calves, mainly Hereford X Friesian. The farm plan originally consisted of a herd of 50 suckler cows and buying in 30 dairy calves each year to boost numbers. Given the extremely challenging year, this plan is set to change.
“At the moment, I have four pens of dairy bulls and I can’t move them. Right now, I’d rather push up cow numbers towards the 60-mark and drop the calves. I firmly believe I would get more out of them.
“So far, the under 16-month bull and 22-month heifer system is working well.”
Flaherty family's calves.
As previously discussed, the farm suffered a bad bout of calf pneumonia during the spring. The higher-than-normal number of calves in the sheds at the time did not help the issue.
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