Reassessing beef budgets ahead of winter 2023

With the beef finishing business remaining as precarious as ever, Aidan Murray, Teagasc Beef Specialist, tells us more on the recently published Teagasc beef budgets for 2023.

The beef finishing business is as precarious as ever. This year’s beef budgets indicate that prices as high as €5.80/kg will be needed next spring for continental steers to breakeven, or close to €6/kg if you want a margin.

This is broadly similar to the position last year, but some of the fundamentals are slightly different. With easing fertiliser costs in the second half of the year, silage costs have reduced from €50/t in 2022 to €45/t this year. Meal costs have also seen a significant drop in price compared to last year. In 2022, meal was costed at €440/t, but cereal prices has reduced since then. On account of this, meal in the budgets this year is €350/t, with continued downward movement expected.

Although reduced feed costs are welcome, the other key fundamental in the budgets is the cost of the store/weanling. Store/weanling prices are collated across a number categories from the Irish Farmers Journal Martbids. Across all the animal prices categories, prices are up on average 6% compared to 2022. But there is disparity across the categories, with stronger weanling bulls up by 9% and lighter weanling heifers showing price increases in excess of 10%.The strong store/weanling prices have cancelled out any reductions on feed prices, hence the high breakeven prices required.

With no guarantees on prices next spring, the budgets are only a guide as to what prices will be needed to breakeven. You may well be able to buy stores cheaper than we have outlined or rations in your part of the country may be more expensive than €350/t. So it is important that you know your own costs. If you know your costs you can determine what you can afford to pay for stores. The cost of the store is really the most significant outlay. Get that wrong and even with excellent performance you will struggle to make a margin.

Listen into the Beef Edge podcast below, where Aidan discusses the Teagasc beef budgets in further detail with Teagasc Beef Specialist, Catherine Egan:

For a full breakdown of the beef budgets, launched this week at the National Ploughing Championships, click here. 

Contact your local Teagasc advisor to discuss further. Find relevant contact details here 

For more episodes from the Beef Edge podcast, visit the show page here