Contracting Rearing

Bass Reeves

I surprised but in a nice way today when reading the FI. There was an article by Martin O'Sullivan regarding contracting rearing. For a heifer going to a contract rearer post weaning and being returned to Dairy farmer pre calving he has it costed at 1204 euro. The heifer would be on the rearer's farm for 630 days so 1.91/day.

I was delighted that finally some one has put realistic costs on such a project. Some of the projected figures down at 1 euro/day are unrealistic and while this might be a tad on the high side it is nearer a realistic figure. I might be interested at this kind of figure myself.

Base price

I must look up the article online. From memory you always reckoned €1.40/day and it would want to be at that level to make it viable for the rearer.

djmc

I'd suppose it depends what you would be expected to do.
I know of a farmer that keeps them from April to end of October with no set target weights and everything except the grass and labour is paid by the owner for a euro a day.
The rearers cost is fertiliser and his time but he has an off farm job as well.

rangler1

Base price wrote: »

I must look up the article online. From memory you always reckoned €1.40/day and it would want to be at that level to make it viable for the rearer.

I allways maintained on here there was a risk of it becoming another race to the bottom because of the poor return in drystock farming.
I did about two years year winter feeding cattle for people and it was something similar....you need a good rate to be working for others to keep your mind right

blue5000

Teagasc in Athenry were talking about 1.25 a day, but they take the in calf heifer at the beginning of the second winter. It obviously costs a lot more per day in winter. A euro a day would be fine for grazing. Big advantage for the rearer is cash flow, regular cheque every month would be important.

What would it cost to feed and house an in calf heifer per day for the second winter? She would be taking up the space of a finishing animal, maybe some years that might not be such a bad thing;)

Mooooo

What did the figure quoted include?

rangler1

Base price wrote: »

I must look up the article online. From memory you always reckoned €1.40/day and it would want to be at that level to make it viable for the rearer.

You probably haven't labour included at that figure......bad enough working for yourself for nothing but......:rolleyes:

alps

Bass Reeves wrote: »

I surprised but in a nice way today when reading the FI. There was an article by Martin O'Sullivan regarding contracting rearing. For a heifer going to a contract rearer post weaning and being returned to Dairy farmer pre calving he has it costed at 1204 euro. The heifer would be on the rearer's farm for 630 days so 1.91/day.

I was delighted that finally some one has put realistic costs on such a project. Some of the projected figures down at 1 euro/day are unrealistic and while this might be a tad on the high side it is nearer a realistic figure. I might be interested at this kind of figure myself.

Bass, does this price include the value of the heifer calf and the weaning cost? Weaning costs are 180 to 200 and value of dropped heifer probably the same.
The cost of rearing the heifer from that to calving can be broken down to distinct cost periods.
Weaning
First summ er
First winter housing
Second grass season
Second winter period

It is pretty easy to apply costs and fair pay for each of these periods. Our heifers are taken by a reared for the second grasping season. We cover all risk and costs associated with the animals, breeding, veterinary, dosing, vaccinations, and death losses, and we have worked out a fair price per day that both are happy with.

It is based on a numerous of parameters. ...what would it cost us to rent the same ground, fertilise, and put in the required time. The rearer cannot make the same per day payment out of buying cattle in the Spring and selling them in the Autumn. He also has no risk,...no losses...and no year that he gets a creaming on sale day. ...

Both of us are also realistic that the enterprise needs to make money for both at heifer sale prices...otherwise it doesn't work.

But I could tell you for sure, that if between us we incurred costs of 1200 euros for a heifer post weaning to point of calving, we would have given up years ago...

Mooooo

Anyone have the break down from the article or a link?

Bass Reeves

djmc wrote: »

I'd suppose it depends what you would be expected to do.
I know of a farmer that keeps them from April to end of October with no set target weights and everything except the grass and labour is paid by the owner for a euro a day.
The rearers cost is fertiliser and his time but he has an off farm job as well.

Most dairy farmer want only there heifer on your land or on that block. Disease beinga big issue. Problem arises if herd test is failed. Strictly speaking he is not entiltled to DA, SFP shouuld be ok. Unless he is stocked at 2/acre he is at nothing and even if he is after fertlizer and any fixed costs he will have little but a land rental value. Him having a job is immaterial it would be like Larry saying dairy farmers should get 20c/kg less for cattle as they are milking cows

blue5000 wrote: »

Teagasc in Athenry were talking about 1.25 a day, but they take the in calf heifer at the beginning of the second winter. It obviously costs a lot more per day in winter. A euro a day would be fine for grazing. Big advantage for the rearer is cash flow, regular cheque every month would be important.

What would it cost to feed and house an in calf heifer per day for the second winter? She would be taking up the space of a finishing animal, maybe some years that might not be such a bad thing;)

I always think this idea that there is no risk for rearer is a bit funny. It is an open market farmers are the first to move to a cheaper supplier. So contract will have to reneogiated every year. Know most farmers you will get no commitment untl after March 1st regarding that years stock. I know a lad that rents a small parcel of land the farmer that takes will not appear to give commitment untl midMarch.

To feed a heifer for second winter would cost in the region of 1.5-1.7/day in fed costs alone. An incalf heifer might take up more room than some finishing animals as you could not pack pens.

I dis a rough costing for taking calf May 1st at 8-12 weeks of age and carrying to December 31 following year. These heifers would not be AI bred but by a stock bull. Cost would be around 1.6/day all in. Problem is that unless farmer had enough heifers to stock farm you would want a 10-15c/head premium for a seperate group.

Bass Reeves

alps wrote: »

Bass, does this price include the value of the heifer calf and the weaning cost? Weaning costs are 180 to 200 and value of dropped heifer probably the same.
The cost of rearing the heifer from that to calving can be broken down to distinct cost periods.
Weaning
First summ er
First winter housing
Second grass season
Second winter period

It is pretty easy to apply costs and fair pay for each of these periods. Our heifers are taken by a reared for the second grasping season. We cover all risk and costs associated with the animals, breeding, veterinary, dosing, vaccinations, and death losses, and we have worked out a fair price per day that both are happy with.

It is based on a numerous of parameters. ...what would it cost us to rent the same ground, fertilise, and put in the required time. The rearer cannot make the same per day payment out of buying cattle in the Spring and selling them in the Autumn. He also has no risk,...no losses...and no year that he gets a creaming on sale day. ...

Both of us are also realistic that the enterprise needs to make money for both at heifer sale prices...otherwise it doesn't work.

But I could tell you for sure, that if between us we incurred costs of 1200 euros for a heifer post weaning to point of calving, we would have given up years ago...

If I remember right the calf was leaving dairymans farm at about 8 weeks and return at point of calving. It included a cost of 95 euro/head for vet and AI. A 200 euro land charge and 17o for rearers own labour. Value of calf was added after and calving losses. It stll had a margin of about 250/head for extra cows dairy farmer could carry. Cannot get a link to article as FI has not yet got it online,

trg

Dragging this up again I know but found the thread informative.

I was just wondering as to whether folk would see if there would be uptake on a contract rearing set-up whereby year old heifer stock would come on 1st April or thereabouts and returning for housing in Winter say 1st December.

We've a hill field available with good fencing, water and handling facilities.

I'm unsure if the dates would be considered too late. Hard to see that they'd be able to go on it earlier.

Would mixing be a big turn-off? We find it handy to move the strong heifer calves + their dams over to that field away from the paternal bull.

yewtree

trg wrote: »

Dragging this up again I know but found the thread informative.

I was just wondering as to whether folk would see if there would be uptake on a contract rearing set-up whereby year old heifer stock would come on 1st April or thereabouts and returning for housing in Winter say 1st December.

We've a hill field available with good fencing, water and handling facilities.

I'm unsure if the dates would be considered too late. Hard to see that they'd be able to go on it earlier.

Would mixing be a big turn-off? We find it handy to move the strong heifer calves + their dams over to that field away from the paternal bull.

I know a few lads who send heifers awsy for summer grazing.
It wouldnt be as attractive for dairy farms as they still would have to provide winter housing.
Also micing not ideal but it happens on contract rearing farms

alps

trg wrote: »

Dragging this up again I know but found the thread informative.

I was just wondering as to whether folk would see if there would be uptake on a contract rearing set-up whereby year old heifer stock would come on 1st April or thereabouts and returning for housing in Winter say 1st December.

We've a hill field available with good fencing, water and handling facilities.

I'm unsure if the dates would be considered too late. Hard to see that they'd be able to go on it earlier.

Would mixing be a big turn-off? We find it handy to move the strong heifer calves + their dams over to that field away from the paternal bull.

We work with a rearer for the period that you refer to. They go to him in smaller batches as his grass growth and land can take them, anytime from start of March to start of April, and stay with him through mating from May1st, to end of grazing season, which he dictates.

We find it a very amenable system, whereby his responsibilities are to provide enough grass ahead of them and he sells any surplus grass from the area. He does all the herding and we cover all health and veterinary costs. He just rings our vet if he feels the need. He does a really good job and loves having the animals on farm..these animals get fresh grass daily..farm is on a good nutrition and reseeding programme.

There can be no restrictions whatsoever to quality grass intakes of dairy stock, as being in calf at the end of the period is paramount.

But mixing stock would be a big no no for me..others may not be that ..

kowtow

I'm half toying with the idea of taking some heifers to rear next year alongside my own as I've an outfarm a bit too big for the time being and with great accommodation coming on stream.

The place would be under-used for the next year or two anyway and I have to be up there every day for my own youngstock so it might not be such a bad route to take.

Be interested in any experiences / downsides.

Jimbo789

Would there be much profit to be made from a non-dairy farmer buying the Fresian heifer calves themselves and rearing them until they were close to calving and selling them then? There would be added risk but would the potential profits be higher?

Bass Reeves

Jimbo789 wrote: »

Would there be much profit to be made from a non-dairy farmer buying the Fresian heifer calves themselves and rearing them until they were close to calving and selling them then? There would be added risk but would the potential profits be higher?

The price of milk at the time of buying and selling would have a big influence. When milk prices are high both the calves and in calf heifers would be very expensive if it was at 25c/L when selling you have serious problems. As well it is unlikly that dairy farmers would sell there better bred heifer calves it is more likly taht it would be calves from cows that had issue's

Mooooo

Bass Reeves wrote: »

The price of milk at the time of buying and selling would have a big influence. When milk prices are high both the calves and in calf heifers would be very expensive if it was at 25c/L when selling you have serious problems. As well it is unlikly that dairy farmers would sell there better bred heifer calves it is more likly taht it would be calves from cows that had issue's

Also a lot of lads buying would like to see original herd and dams

Tomjim

I would be interested in doing some contract rearing next year, how would I make contact with a dairy farmer?

yewtree

Tomjim wrote: »

I would be interested in doing some contract rearing next year, how would I make contact with a dairy farmer?

If your with Teagasc ask your local advisor. They might have a list of dairy farmers looking for a rearer. That's how I got in contact with the lad the rears my heifers.

ellewood

Is the cost of rearing repalcment heifers on contract going to increase?

As the costs this spring/summer were huge

The costs this winter/spring wont be low either?

And going forward I dont see the cost of meal/fert/silage droppi g anytime soon

GrasstoMilk

Tomjim wrote: »

I would be interested in doing some contract rearing next year, how would I make contact with a dairy farmer?

Where are you based tomjim?