Weighing up the prospects for continental weanling to bull finishing systems

Each year, Teagasc Beef Specialist, Aidan Murray prepares a suite of financial budgets as guide to beef farmers buying cattle for further feeding and finishing. In this budget, he examines the economic prospects for continental weanling to bull beef systems.

As part of the Teagasc Beef Budgets 2024/2025, three bull systems are examined. The first entails purchasing continental bull weanlings at 320kg liveweight in October and carrying to beef in early June. In the other two, a heavier weanling is purchased, being 420kg in October, and marketed in either mid-April or mid-June.

System one – 320kg weanling bull carried to beef in early June

The first budgeted system entails purchasing a weanling bull at 320kg in October and carrying to beef over a 230 day period on a diet consisting of silage (5t) and concentrates offered at a feeding rate of 4.5kg/head/day. Under this system, a daily liveweight gain of 1.25kg/head/day is targeted, carrying the bull to 608kg liveweight in early June to produce a 346kg carcass.

For this budget, an assumed weanling bull purchase price of €3.43/kg is used, being reflective of current prices being achieved from the market for such weanlings as reported by the Irish Farmers Journal’s market data, bringing the budgeted purchase price for such an animal to €1,098/head.

Factoring in elements such as animal health, budgeted at €35/head, transport and marketing at €40/head and other variable costs such as concentrates (€310/t) and silage (€45/t), the expected variable costs for this system are €620/head. Fixed costs are factored in at €145/head, including an interest charge of 7% towards 50% of financing animal and feed purchases.

All in all, when animal purchase price (€1,098), and variable (€620/head) and fixed costs (€145/head) are accounted for, it means this system will require a breakeven selling price of €1,864/head or €5.39/kg. To assess the impact of a higher or lower purchase price on the system, purchase prices of €3.33/kg and €3.53/kg were also examined, with the former reducing the breakeven beef price to €5.29/kg and the latter increasing it to €5.48/kg.

System two – 420kg bull weanling carried to beef in mid-April 

System two provides guideline costs for carrying a 420kg spring-born continental bull weanling to beef in mid-April, targeting a liveweight at sale of 675kg or a 385kg carcass, over a six month period. Unlike the previous system, the finishing diet consists of straw and concentrates, with silage being offered during the introductory phase of feeding.

Over the course of the 180 day feeding period, the following feed inputs were assumed: 220kg of silage, again costing €45/t; and concentrate costing €310/t offered initially at a rate of 4kg/head/day over a 20 day introduction period, before being increased to an average of 11.5kg/head/day over the finishing period.

Again, using market data, the assumed purchase price for this bull is €3.49/kg, bringing the purchase cost per head to €1,466. When variable and fixed costs are factored in, amassing to budgeted €699/head and €121/head, respectively, the breakeven price for this system is budgeted at €2,286/head or €5.93/kg. Again, to assess the effect the impact purchase price has on this system, purchase prices of €3.39/kg and €3.59/kg were assessed, with the lower purchase price bringing the breakeven price back to €5.83/kg and the latter rising it to €6.05/kg.

System three – 420kg bull weanling carried to beef in mid-June

The third and final bull system assessed looks at carrying an October purchased, spring-born continental bull weanling, weighing 420kg at the time of purchase, to beef in mid-June. Expected performance under this system is a daily liveweight gain of 1.35kg/head/day, to bring an animal to market weighing 725kg, producing a 421kg carcass.

Over the eight month period, it’s budgeted that the bull will consume 320kg of silage, again costed at €45/t and offered over the introductory period, and will require a meal input of 4kg/head/day over the first 20 days and an average of 12kg/head/day over the remainder of the finishing period. Once more, an assumed meal price of €310/t is used.

Like system two, budgeting for the purchase of a 420kg bull costing €3.49/kg, the purchase price totals €1,466. However, on account of higher concentrate feed input and a longer stay on farm, the total budgeted variable and fixed costs are considerably higher at €937/head and €161/head, respectively, thus meaning that a breakeven price of €6.09/kg or €2,564/head is required from this system. Where the purchase price reduces by 10c/kg, it reduces the breakeven beef price back to €5.99, correspondingly when it increases by 10c/kg to €3.59/kg, the breakeven beef price rises to €6.20/kg.

Table 1: Teagasc Beef Budgets 2024/2025 – Bull Beef Systems – Continental Weanlings

Assumptions: Very good levels of efficiency with a high average daily gain; meal cost at €310 per tonne; silage quality critical to performance; well preserved silage at 20% DM, 72% DMD and costing €45 per tonne assumed;
good animal health – dosing and other health costs at €35 per head; transport and marketing at €40 per head; half the interest cost on feed and animals borrowed at 7%; no mortality assumed; selling price required only covers variable and fixed costs and does not include a margin.

Specialist comment

Commenting on the bull beef finishing systems, Aidan Murray explained: “These budgets are intended as a guide only and it is highly recommended that farmers sit down with their advisor to complete a budget relevant for their own farm and circumstances, and the margin they hope to obtain from the system.

“In our budgets, we have used very good levels of efficiency and excellent quality silage, enabling animals to gain high levels of average daily gain. Where this high level of performance cannot be achieved at farm level, producers may face the prospect of requiring higher prices to breakeven.

“As has been a key message stemming from the industry over the last number of years, farmers entering bull systems must ensure they have a market outlet secured before commencing a bull finishing system. Bull beef systems are high risk and producers must be aware that some markets have upper carcass weight and age limits, while the system is also very sensitive to buying and selling price.”

Another important factor to note is the importance of silage quality. Where silage of a suitable quality (+72DMD) for finishing isn’t available or silage reserves are scare, ad-lib concentrate feeding systems may prove attractive to some finishers. Where this is the case, purchasers of large volumes of concentrates need to have a discussion with their merchant regarding its potential cost and be aware that ad-lib feeding will give a much more predictable, faster finish.

To access the full suite of Teagasc Beef Budgets 2024/2025, click here.  

Also read: Time to do the sums on winter finishing