Margin in store to beef bullocks

Tomjim

Just wondering if there is much of a margin in store to beef as follows;

1. Buying whitehead store bullocks in the autumn/ winter and finishing them the following autumn (12 months cycle)
2. Buying whitehead store bullocks in the spring for grazing and selling them in the autumn.(6 to 8 month cycle)

Last spring I bought heifers and bullocks for summer grazing, I was happy with the return on the bullocks, on average I made about €250 with very little expense. I bought again this year.

Just wondering what are people views on this method of farming

Bass Reeves

It really depend on the price you pay and how much weight you can put on the cattle. In general I try to avoid autumn/winter finishing for the poor prices in autumn and the costs involved in winter finishing. It immaterial of breed the price you pay dictates the profit margin. In a 12 month system you have the advantage of knowing your costs and having sold the bullock being aware of how much you can spend on buying replacement to achieve a margin.

In a 12 month system I would aim for a minimum net margin of 200 after costs. Ideally I would like more but that is minimum I be looking for. To achieve that you have to know your costs, My own calculation is it take 350 to carry a bullock from store to finish so adding my margin I be looking at an average gross margin of 550/bullock.

My system is to try to buy some lighter stores in June/July and get them to as near 450 kgs at housing. I never get caught up on breed I am lucky enough to be able to finish any breed on my land. However I try to stay away from AA as there weight gain is brutal Many now have an average DWG of only 5-600 grams no matter how you feed them.

farawaygrass

Bass Reeves wrote: »

It really depend on the price you pay and how much weight you can put on the cattle. In general I try to avoid autumn/winter finishing for the poor prices in autumn and the costs involved in winter finishing. It immaterial of breed the price you pay dictates the profit margin. In a 12 month system you have the advantage of knowing your costs and having sold the bullock being aware of how much you can spend on buying replacement to achieve a margin.

In a 12 month system I would aim for a minimum net margin of 200 after costs. Ideally I would like more but that is minimum I be looking for. To achieve that you have to know your costs, My own calculation is it take 350 to carry a bullock from store to finish so adding my margin I be looking at an average gross margin of 550/bullock.

My system is to try to buy some lighter stores in June/July and get them to as near 450 kgs at housing. I never get caught up on breed I am lucky enough to be able to finish any breed on my land. However I try to stay away from AA as there weight gain is brutal Many now have an average DWG of only 5-600 grams no matter how you feed them.

Do you not find the demand, and price, for that type of cattle is usually higher in June/July with lads buying for extra grass? I know we used to always try have a few of our suckler bred yearlings for sales middle of June and used to do well enough

Bass Reeves

farawaygrass wrote: »

Do you not find the demand, and price, for that type of cattle is usually higher in June/July with lads buying for extra grass? I know we used to always try have a few of our suckler bred yearlings for sales middle of June and used to do well enough

Ùsually not. I find often from May on the gra for grass cattle goes most years. The cattle I buy early in the year tend to be very light very storey cattle. However if cattle are too dear I just walk away. I bought 7 cattle in a mart in May lasy year it was mid july before I bought again 24 out of DD, I got 6 in mid August (mart) and another 12 a few days later( through a dealer) finally I bought 20 in the mart virtual end of October.

Big difference in demand betweem asuckler bred yearling weighting 400 kgs after two months at grass and a mixed bunch of 300kg cattle from the dairy herd.

mf240

No there isn't a margin

Cavanjack

Buy about 50 of these from August to December every year to kill off grass the following year from July to November. Buy a 450 to 600 kg store. Prefer a goodish continental that’ll grade at least an r= but will buy a friesian at the right money.
Normally don’t buy an Angus or Hereford because they just don’t put on the weight and find that you give the bonuses away the day you buy.
A good continental will thrive and as long as he is bought at the right money will leave money.
We leave them out as long as possible before Christmas and get them out as soon as possible after paddies day.
Last years cattle left from €450 to €780 of a gross margin. You won’t get rich at it but they’ll leave something as long as they are bought right

Tomjim

is that margin 450 to 780 achievable every year?

Hard Knocks

Tomjim wrote: »

is that margin 450 to 780 achievable every year?

Or how much did the previous owner lose?

Robson99

At that craic here. Was finishing completely out of the shed up to this year but it has been a loss making exercise since cattle dipped below €4.00 a kg.
Bought stores in last November and will finish from July to September with approx 200kg of high maize mix at grass. Got a 1.5 kg a day of Rolled Barley, Soya Bean meal + Minerals for 100 days over winter with silage.
Winter feeding is only a mugs game sub €4.00 / kg IMO

Bass Reeves

Tomjim wrote: »

is that margin 450 to 780 achievable every year?

A finisher knows his costs adds his margin and only pays what remains to buy cattle. If you buy around the same time you sell you can keep your.argin every year.

Cavanjack

Hard Knocks wrote: »

Or how much did the previous owner lose?

This is true. Bought a lovely u grading Charolais bullock 610kg for €1100 in December. It cost money to get him to 600kg.

Cavanjack

Tomjim wrote: »

is that margin 450 to 780 achievable every year?

Yeah it would be. The cattle killed mid summer usually do well. These would be killed with little or no meal and when the price is usually high. This summer could be different.
I suppose I’d be happy with an average gross margin of €550-€600 and like bass I try to have everything leaving the farm leaving at least €200 behind them when all is paid for.

kk.man

I can't see a margin for the store to finisher farmer in Hereford cattle. They are valued too high at store stage. I left behind not shapey but lengthy ones at a mart during the week which sold for 2.10 é per keg think I bid 1.8 but certainly there is no money in it for that man at that price and somewhere along the way these cattle Herefords bonus was claimed.

Wouldn't touch a Hereford and the AA is as Bass says too dear for small weight at killing time. Traditional breeds are just too expensive for me.

CloughCasey1

Wouldn't touch a Hereford and the AA is as Bass says too dear for small weight at killing time. Traditional breeds are just too expensive for me.[/quote]

Have you ever killed trad breeds out of suckler stock? If so how did you find them. I've had a few here. They can be killed at 25mts around 370kg R= 3+ no major push in terms of a meal finish off grass. They are not overly expensive to buy as runners on DD. They come off young first or second calvers and the owner doesn't really hold much value in them comparing with the rest of his/her stock. I've asked a few did ya not chance the mart with the rest of the export types and I got "the look". ; ) .