Beef Talk – Ep 5: The Grand Challenges.

The contribution of the beef industry to economic activity in Ireland, particularly in regions where sectors other than agri-food are less active, has been well recognised for some time.

However, it is also clear from various data sources that farm incomes are very low for beef farming systems and in particular for suckler beef farms.

The recently released Teagasc National Farm Survey results showed an 11% increase in farm incomes on suckler beef farms.

However, this only moved family farm income on suckler farms to €9,188 per farm, with this including direct payments and subsidies of €14,700. In other words, suckler beef farms operated at a loss from their farming activities.

Decrease

The low farm incomes are reflected in a decrease in suckler cow numbers in Ireland; since 2010, numbers have declined by 14% and are currently below one million head for the first time since the early 1990s.

“Low family farm incomes is the single biggest challenge facing the beef industry and will require a multi-faceted approach to address,” Crosson said.

It’s clear that farm supports will continue to be an essential component of beef farm incomes. Given the CAP Reform proposals that were recently published by the European Commission, it is likely that the current payment model of the Basic Payment Scheme will change in the coming years and that future payments will be increasingly contingent on meeting environmental objectives.

Efficient

Programmes such as the BDGP and BEEP set out to incentivise more efficient suckler cow breeding with the overall objective being to improve environmental efficiency. Schemes such as these and GLAS are likely to become a much greater feature of the farm support infrastructure.

Crosson said: “It’s important that suckler farmers also focus on the factors inside the farm gate which drive efficient suckler beef production such as breeding, nutrition, animal health and grassland management. "Efficient sucker beef production will require farmers to maximise the proportion of life-time daily gain, and suckler cow feed requirements, obtained from a grazed grass diet. Thus, high levels of reproductive performance resulting in compact spring calving and a long grazing season is paramount.

"On average, age at first calving is six months later than optimal, with consequent economic and environmental costs. Calving interval is more than thirty days longer than the target 365 days with consequent impacts on calving rate, one of the most important factors affecting profitability on sucker beef farms.

On average, age at first calving is six months later than optimal

"Likewise, age at slaughter is six months later on average when compared to high performing herds at the same carcase weight. Again this is an economic cost and furthermore, given the current policy agenda, the impact on greenhouse gas emissions is significant.”

Paul Crosson says Teagasc research shows that the adoption of best practice can deliver a net margin per cow calving of approximately €300 at current prices (€3.75 base R3 price) with a sensitivity of €35/cow for each 10 c/kg change in beef price.

The number of cows carried on a farm will dictate total farm income with this depending on the set of circumstances on that particular farm; for example, land type, prevailing weather (in particular rainfall), housing availability and level of off farm employment.

Key factors

Crosson said: “Our research at Grange is focusing on these key factors underpinning efficient suckler beef production including projects focusing on suckler cow and bull fertility, respiratory illnesses in calves, management of infectious parasites, efficient winter feeding and finishing, and factors affecting meat quality traits.

"There is also farm systems research which both incorporates best practice and also investigates farm system comparisons such as divergent genetics and herd level feed management. A core research objective is to carry out a suite of environmental measurements and assessments ranging from the impact of alternative feed and management practices on methane emissions to whole farm greenhouse gas and ammonia emission impacts.”

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