Calf prices have been a big talking point so far this season, with many suggesting that they cannot afford to pay the money being sought for good-quality calves and still maintain their margin.
Here, we have taken a theoretical 15ha dry farm, running a complete calf-to-beef system – testing both dairy and Angus-cross dairy bullock-producing systems.
The dairy calf farm is stocked at 170kg organic N/ha, while the Angus farm is at 156kg organic N/ha (slaughtering 30 head per year). Land and slurry charges are included in fixed costs. The performance targets here are high, but based on a quality animal and impeccable management from start to finish.
In this instance, two-week-old Friesian and Angus bull calves are bought for €70 and €250 respectively.
The systems
In the first grazing season, calves are turned out full-time following rearing in early May at 95kg for approximately 189 days into mid-November. Concentrates are fed for three weeks post-turnout and five pre-housing for acclimatisation purposes. Daily weight gain in season one is 0.9kg. During the winter, calves grow at a rate of 0.55kg daily on 70% DMD silage and 1kg of concentrate for 120 days.
Here it is assumed that animals can be turned out mid-March, given their small size. Taking into account a gut fill lost post-turnout, animals will grow at 0.9kg daily for 210 days until mid-October at pasture. They will then return to the house for finishing on silage and 5.5kg of concentrate, experience gut-fill loss and achieve 1.1kg daily weight gain for 120 days up to their second birthday in mid-Feb, reaching a slaughter weight of 628kg and subsequent carcase weight of 325kg.
Assuming a beef price of €3.80/kg and an O-3 grade, the carcase would be subject to deductions of €0.24/kg and not achieve quality assurance. The Angus mirrors the Friesian system in terms of management. Given this type of animal’s increased tendency to lay down fat and slightly better growth potential versus the Friesian, they will be adequately fleshed approximately 60 days sooner at a heavier carcase weight. The carcase price commanded here assumes an R-3 grade, €0.10 Angus bonus and €0.12 quality assurance bonus.
Permutations
These figures include no mortality – margin will decrease by c. €15/head at a rate of 5% rearing mortality. Beef prices of +/- €0.10 will increase/decrease margins by €32.50 and €33.50 for Friesian and Angus respectively. Achieving P+ grade in the Friesian system and O+ in the Angus system will reduce margins by €19.50 and €40.20 respectively, provided there is no accompanying change in fat class or carcase weight and the breed bonus is maintained. Achieving a fat class of 2+, instead of a 3, will reduce the Friesian margin by €19.50 and Angus by €20.10, provided the breed bonus is maintained.
Read more
Focus: calves 2017
Calf prices have been a big talking point so far this season, with many suggesting that they cannot afford to pay the money being sought for good-quality calves and still maintain their margin.
Here, we have taken a theoretical 15ha dry farm, running a complete calf-to-beef system – testing both dairy and Angus-cross dairy bullock-producing systems.
The dairy calf farm is stocked at 170kg organic N/ha, while the Angus farm is at 156kg organic N/ha (slaughtering 30 head per year). Land and slurry charges are included in fixed costs. The performance targets here are high, but based on a quality animal and impeccable management from start to finish.
In this instance, two-week-old Friesian and Angus bull calves are bought for €70 and €250 respectively.
The systems
In the first grazing season, calves are turned out full-time following rearing in early May at 95kg for approximately 189 days into mid-November. Concentrates are fed for three weeks post-turnout and five pre-housing for acclimatisation purposes. Daily weight gain in season one is 0.9kg. During the winter, calves grow at a rate of 0.55kg daily on 70% DMD silage and 1kg of concentrate for 120 days.
Here it is assumed that animals can be turned out mid-March, given their small size. Taking into account a gut fill lost post-turnout, animals will grow at 0.9kg daily for 210 days until mid-October at pasture. They will then return to the house for finishing on silage and 5.5kg of concentrate, experience gut-fill loss and achieve 1.1kg daily weight gain for 120 days up to their second birthday in mid-Feb, reaching a slaughter weight of 628kg and subsequent carcase weight of 325kg.
Assuming a beef price of €3.80/kg and an O-3 grade, the carcase would be subject to deductions of €0.24/kg and not achieve quality assurance. The Angus mirrors the Friesian system in terms of management. Given this type of animal’s increased tendency to lay down fat and slightly better growth potential versus the Friesian, they will be adequately fleshed approximately 60 days sooner at a heavier carcase weight. The carcase price commanded here assumes an R-3 grade, €0.10 Angus bonus and €0.12 quality assurance bonus.
Permutations
These figures include no mortality – margin will decrease by c. €15/head at a rate of 5% rearing mortality. Beef prices of +/- €0.10 will increase/decrease margins by €32.50 and €33.50 for Friesian and Angus respectively. Achieving P+ grade in the Friesian system and O+ in the Angus system will reduce margins by €19.50 and €40.20 respectively, provided there is no accompanying change in fat class or carcase weight and the breed bonus is maintained. Achieving a fat class of 2+, instead of a 3, will reduce the Friesian margin by €19.50 and Angus by €20.10, provided the breed bonus is maintained.
Read more
Focus: calves 2017
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