Stand 1: selecting the most suitable system for your beef farm

On Stand 1, Teagasc outlines how farmers should go about selecting beef systems for their farm.

Beef production in Ireland is characterised by having an array of different production systems.

Given the range in farm systems, a clear three- to five-year plan is critical to improve the economic and environmental sustainability of beef farms.

The beef system operated and the intensity at which it is farmed will depend on a number of factors, including labour availability, facilities, land area and type, and economics.

The Irish beef industry is dominated by part-time farms and this will have a huge effect on the type of system that is chosen on specific farms.

Of the production systems analysed, net margin per hectare was greatest for systems finishing at the end of the second grazing season.

Greenhouse gas emissions were lowest for dairy calf-to-beef systems and for systems finishing cattle at younger ages.

Paul Crosson outlined some of the key areas which should dictate the type of beef system being employed on a beef farm

Stand 2: performance targets for beef production

On Stand 2, Teagasc researchers and specialists outline the importance of high animal performance and its effect on profitability and greenhouse gas emissions.

A major source of inefficiency in beef cattle production systems is failure to meet performance targets. Achieving high animal performance is critical if animals are to be slaughtered younger.

Where key performance targets are not met, this has large negative ramifications for the profitability and environmental footprint of beef production systems.

Animal growth rate is a significant driver of beef farm profitability and is largely a function of feed quality and quantity, animal genetics and herd health.

Carcase weights and animal type

Teagasc outlined that in 2021, 1.4 million prime cattle (steers, young bulls and heifers) were slaughtered, with males accounting for 59%.

Within the male cattle slaughtered, steers accounted for 84% and young bulls accounted for 16%.

Nationally, mean carcase weight for steers, young bulls and heifers in 2021 was 356kg, 371kg and 313kg respectively; 22% of steers, 35% of young bulls and 6% of heifers had carcases heavier than 400kg.

In terms of carcase fatness, 25%, 4% and 47% of steers, young bulls and heifers respectively had a carcase fat score of 4- or greater.

This compares with the commercially-acceptable minimum carcase threshold for fat classification of 2+ and implies that a relatively high proportion of steers and heifers are overfat, which is a costly production inefficiency.

Currently, mean slaughter age nationally for suckler-bred and dairy-bred steer genotypes ranges from 26.3 to 28.1 months and from 26.6 to 27.7 months respectively.

Corresponding ranges for heifers are 24.6 to 26.4 and 24.3 to 26.0 months of age.

Stand 3: achieving performance targets on farms

On Stand 3, Teagasc outline the important factors that have an effect on performance such as genetics, health, grassland management and nutrition.

Improving soil fertility and correct management of grazing swards to maximise liveweight gain are some of the most important aspects of achieving high animal performance on farms.

The role of clover was also discussed at this stand. Red clover swards have the ability to fix higher levels of nitrogen (N) (150kg to 200kg N/ha annually) when compared with white clover.

The growing point of red clover is more exposed in the sward than that of white clover, making it more vulnerable to physical damage from animals and machinery.

This means that red clover is less suitable for frequent grazing and is usually established as a silage crop.

Red clover swards generally persist for two to four years under a multi-cut system, although well-managed swards can persist somewhat longer.

Research at Teagasc Grange found that swards of red clover sown in a mixture with perennial ryegrass and receiving no chemical N fertiliser persisted for six years and, on average, across those years produced a similar annual yield to perennial ryegrass swards receiving 412kg N/ha when managed under a four-cut silage system.

Drafting for slaughter key in 2022

The selection of cattle for slaughter (drafting) is primarily dependent on their ability to meet market specifications for carcase fat score, which is between 2+ and 4=.

Nationally, a relatively high percentage of animals are being slaughtered at excessively high fat scores, representing additional feed days and associated economic and environmental costs.

Studies from Grange have shown no impact on meat-eating quality from cattle slaughtered at a low carcase fat score from a pasture-based diet compared with animals with a higher carcase fat score produced on a high-concentrate indoor finishing system.

As finishing periods increase in duration, the conversion of feed into carcase reduces, to a point where feed costs exceed returns from carcase gain.

It is essential that liveweight gain and the level of fatness of finishing cattle are monitored regularly, allowing timely drafting for slaughter.

Body condition (fat) scoring, by handling each animal and paying particular attention to the level of fat deposited at the tail head, rump, loin, ribs and between folds of skin, is essential.

Stand 4: implications and options for dealing with increased costs in 2022

On Stand 4, Teagasc took a look at increased input prices and how they will negatively affect beef margins in 2022 and beyond.

There will be significant increases in costs on beef farms in 2022. In two worked examples presented by Teagasc on the day, cost increases of almost 40% are estimated.

In these examples, increased output prices are unlikely to offset the increase in costs at farm level.

The first step to managing 2022 is the completion of a financial budget that evaluates the financial performance of the farm during 2022.

All options should be considered, with the major focus on making greater use of grazed grass for the remainder of the year and finishing animals at pasture prior to rehousing for a second winter.

Budgets

Commercial farm performance data and information for 2021 was used for the budget baselines and starting points in compiling budgets for 2022 beef systems.

For comparison purposes, a number of assumptions were made in relation to input levels and price increases on feed, fertiliser, contractor charges and all other associated areas of expenditure within a typical beef farming system.

Fixed costs were assumed to increase marginally overall, with diesel being the biggest increase across beef farms, as the increases in electricity costs have a small effect due to relatively low usage.

Total production costs for dairy calf-to-beef systems will have increased from €3.62/kg in 2021 to €4.92/kg in 2022.

Similarly, in suckler-to-beef systems, production costs are estimated to increase to €4.92/kg, up from €3.56/kg in 2021.

In terms of winter finishing, Teagasc estimated a beef price of €6.12/kg being needed next winter to cover all costs.

Budget assumptions

  • Meal: €260/t in 2021 and €400/t for 2022.
  • Contractor charges: increase by 25%.
  • Fertiliser prices: 2.5 times higher on average.
  • Other variable and fixed costs: minor increases.
  • Input level: Assumes the same volume of inputs are used on farm.