Beef Farming in Ireland ACC Agricultural Training Course Beef Farming in Ireland Pat Moylan, Teagasc B & T Dairy Adviser, Kilkenny. Teagasc - Kildalton College

Current structure & outlook for beef Our largest farming enterprise We are over 6 times self sufficient Heavily reliant on export markets Especially the UK

Current structure Beef industry is based on killing cattle from 2 sources Dairy farms Suckler farms

Current structure 8 out of 10 cattle killed leave Ireland Each export market has different needs Breeds are important

Current structure - Breeds Beef cow breeds in Ireland 29 % 24%

Current structure - Breeds Sire breeds used on beef cows 32 % 38%

Current structure - Breeds Sire breeds used on dairy cows 28 % 42 % 8%

Current structure - Distribution Larger herds Higher density Large number of small herds Low density

Current structure - Beef Output 6.5 million cattle in Ireland  2 million calves born per year 2009 Amount % Total Beef Available 548,000 tonnes 1.6 million head 100 Irish Production 514,000 tonnes 1.5 million head 94 Imports 34,000 tonnes 100,000 head 6 Consumption 87,000 tonnes 250,000 head 16 Exports 461,000 tonnes 1.35 million head 84

Current structure - Beef Output Who processes beef? Who does the processing? Local Abattoirs 5% 5 Others 14% 24% 5-7% each 20% Export Plants 95% 12%

Current structure - Beef Output What do factories process? Irish people eat 80-90kg of meat p.a. Young Bulls 8% 120,000 Bulls 2% 30,000 Sheepmeat 4% Other meats 2% Beef/Veal 25% Cows 22% 320,000 Steers 42% 620,000 Poultry 33% Export Plants 96% Heifers 26% 390,000 Pig meat 36%

Current structure - Markets UK grocery market Irish grocery market 4% 8% 20% 7% 31% 26% 5% 7½% 11% 25% 23% 16% 17%

Current structure - Factory Pricing Meat Export Plants Prices based on the EU Beef Classification Scheme Carcase Weight Sex – A B C D E Conformation E U+ U U- R+ R R- O+ O O- P 1 2- 2 2+ 24 18 12 6 30 36 3 4- 4 4+ 42 5 48 54 Fat Score

ACC Agricultural Training Course Current structure - Factory Pricing Factory Bullocks – under 30 months R Grade cattle Cent/kg (Deadweight inc VAT The avergae price in 2008 was 317c/kg The average price in 2009 was 287c/kg A 365kg carcase would then be worth €1157 in 2008 A 365kg carcase would then be worth €1047 in 2008 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Teagasc - Kildalton College

Current structure - Beef Exports 2009 461,000 T €1.4bn UK 53% €660 m 47% EU 47% €735 m 53% France 10% Italy 9% Holland 9% Scandinavia 9% 3rd country markets 0.4%

Current structure - Live Exports 2009 286,000 cattle €157m EU – 196,000 68% Italy 56,000 Spain 49,000 Holland 69,000 UK – 90,000 32%

Beef Consumption - Million tonnes Outlook for Beef World demand for beef is increasing Ireland’s capacity to exploit this is limited Beef Consumption - Million tonnes

Outlook for Beef Relative strength of £ vs € Consumers favour lower value cuts mince accounts for >50% of retail beef sales in UK Competition faced by Irish beef in key markets 3rd country imports Live exports out of Ireland “Global Warming”

Systems of beef production The type of system operated depends on… farm size soil type labour facilities off farm income

Systems of beef production Production System (starting with calves) Age at sale Calf to weanling 7 – 8 months Calf to yearling 1 year Calf to store 1.5 to 2 years Calf to 2 year old beef 2 years Calf / weanling / store to 30 month old beef 2.5 years Calf or weanling to bull beef 15 to 20 months Heifer beef production

Systems of beef production Suckling systems Calving Spring or Autumn Selling Weanlings/Yearlings/Finished Positives “Low” input system Negatives Carrying cost of cow  €250/yr Splitting profit if selling before finished

Systems of beef production Finishing systems Buying Forward stores for winter finish Plainer stores for a grass finish Selling Jan-Mar out of sheds Jun-Oct off grass Positives Less “work” than sucklers Negatives Large amount of finance required and a very volatile market environment

Systems of beef production Niche systems Bull Beef Most efficient Veal Once-calved heifers Organic

Key Production Indicators Production per Cow “A calf per cow per year” Fertility of both cow and bull Calving spread (compact calving season) Calf mortality

Key Production Indicators Performance per head Liveweight per head Liveweight gain at grass Number of days at grass Grassland Management Liveweight gain indoors Grass Silage quality – DMD% Level of meal feeding and duration of finishing Animal health

Key Production Indicators Stocking rate Livestock units per hectare or kgs Liveweight per hectare Depends on: Land type, grassland mgt, Housing, Labour availability If you had an average of 30 suckler cows, 28 calves for 9 months of the year, 1 bull and 5 in calf heifers on 24 ha: 30 x 1LU = 30 28 x 0.3LU X 0.75 = 6.3 1 x 1LU = 1 5 x 0.6LU = 3 Total = 40.3 LU Stocking rate = 1.68 LU

Key Production Indicators What does a Teagasc advisor take from a farmer’s eProfit Monitor results? Output of beef liveweight per livestock unit In kilograms Stocking rate In Livestock Units per hectare Variable Costs per kg Target is less than 75c per kg Best ePM farmers are at 77-82c per kg 3. Output of beef liveweight per hectare combination of 1 & 2

Costs & returns for cattle farmers Teagasc Profit Monitor 2009 258 suckler farmers Complete Cost control planner/Input sheet Local beef advisory input Average suckler farmer making less from “farming” in recent year

Costs & returns for cattle farmers Teagasc Profit Monitor 2009 Average Suckler Top 10% Suckler Average Non-breeding Stocking rate & farm size 1.73 LU/ha on 57 ha 2.07 LU/ha on 67 ha 1.53 on 52 Number of cows 47 67 Output in kgs LWT / ha 521 kg 760 kg 570 kg Gross Output / ha € 849 €1349 €937 Variable costs / ha € 536 € 591 € 633 Fixed Costs / ha € 485 € 573 € 493 Net Profit excl Premia / ha € - 172 € 186 € - 189 Total Premia / ha € 643 € 725 € 720

Costs & returns for cattle farmers eProfit Monitor 2009 – Suckler farms Variable Costs breakdown on a 55 ha farm Other Purchased Feed Purchased Feed €9200 Vet & AI Fertiliser €6500 Contractor €5300 Contractor Fertiliser Vet and AI €4400 Other €4100 Total €29500

Costs & returns for cattle farmers eProfit Monitor 2009 – Non-breeding farms Var. Costs Other breakdown on a 55 ha farm Vet Purchased Feed €17100 Purchased Feed Fertiliser € 5900 Contractor Contractor € 5600 Vet and AI € 2500 Fertiliser Other € 3700 Total €34800

Costs & returns for cattle farmers eProfit Monitor 2009 – Suckler farms Fixed Costs breakdown on a 55 ha farm Other Depreciation Depreciation €6100 Interest Motor, Labour, etc €6200 Repairs Motor, Labour, Insurance, Machinery Leases Mach. Running €3800 Land Rental Land Rental €2700 Machinery Running Other €7900 Total €26700