Farmers will need €4.05/kg to make dairy calf-to-beef scheme profitable
Farmers involved in dairy calf-to-beef production will have to be paid a minimum of €4.05/kg into the hand to make a margin of €200/hd on calves bought this spring.
Analysis from Teagasc confirms that calves bought at an average of €75/hd over the past three months will have to be paid €1,275 for a 315kg carcass to provide a return of €200/hd for the farmer.
This price equates to €4.05/kg.
However, since most finished dairy stock grade 0- or P+, a return of €4.05/kg will necessitate a base beef price of €4.25/kg - even allowing for the QA bonus - given the level of QPS deductions.
Current base prices range from €3.70/kg to €3.80/kg.
The Teagasc analysis comes as Kepak and Glanbia launched a joint calf-to-beef programme.
Under the joint programme, Kepak is offering a contract price to rear dairy-bred calves to beef provided farmers purchase inputs from Glanbia.