Grazing Season 2025: Navigate the Challenges with High Beef and Store Cattle Prices

The 2025 grazing season is drawing near, and farmers around the country are already beginning to plan their strategies for acquiring store cattle. Store cattle, or yearlings, are vital for most farmers as they prepare to take advantage of the higher prices for finished beef. However, with beef prices hitting new highs, with some suckler-bred weanling bulls selling for €4.98/kg this week, the decision on whether to buy yearlings or raise calves will be more critical than ever.

The Debate Over Raising Calves vs. Buying Store Cattle

Farmers are currently debating whether the high prices for beef justify the move from store cattle to raising calves for finished beef. With the potential for increased profits in the short-term, more farmers might consider this shift. However, this decision requires careful consideration.

Alan Dillon, the DairyBeef 500 programme manager at Teagasc, cautions against impulsive decisions. “Farmers who constantly change their systems rarely win. Those moving from purchasing yearlings to calves may benefit from short-term gains, but how will they handle the lack of finished cattle to sell a year later?” he says.

Dillon highlights high dropout rates among calf rearers as evidence of the risks involved. It can take up to two years for calves to reach the marketplace, and market conditions at that time are unpredictable.

The Financial Realities of Buying Store Cattle

While the prices for store cattle are on the rise, they’ve been increasing by only €200-300 compared to the past two years. On the flip side, the prices for finished beef have seen similar hikes.

Consider an example: a 300kg Angus or Hereford yearling purchased for €1,100 in early spring requires minimal investment. With a low-cost grazing season ahead and a brief 60 to 70-day finishing period, variable costs are estimated around €400. At current beef prices, the potential margin after covering expenses is approximately €400 per head. This represents a reasonable return given the timeframe and labor.

The Logistics of Raising Calves

Conversely, raising calves requires a significant upfront investment and extensive management inputs. “Calf rearing is a different ball game,” Alan Dillon emphasizes. “Farmers must adopt a proactive approach, ensuring their infrastructure, such as clean and well-ventilated calf sheds, is in optimal condition.”

“Sheds need to be cleaned and disinfected prior to calves arriving. Adequate straw needs to be in place and a proper, well ventilated calf shed needs to be operational to ensure no pneumonia outbreaks occur,” he added.

Moreover, high-quality milk replacer, a good vaccination schedule, and quality calf rations are crucial investments for calves to thrive.

“There isn’t any room for skimping on costs with calves and a high-quality milk replacer, along with a good vaccination plan and a good quality calf ration are definite requirements.”

While calf-rearing may yield impressive results in the long term, it demands a significant commitment. Some farmers can afford the higher costs and labor requirements associated with raising their own stock. Others may choose to rent pastures and purchase yearlings for the short-term gain. Ultimately, cost implications and potential profits are paramount in any decision.

Conclusion: Planning Strategically for the 2025 Grazing Season

As the 2025 grazing season approaches, farmers must weigh the advantages and disadvantages of raising calves versus purchasing store cattle. High beef prices offer tempting incentives for raising calves, yet the high costs and labor demands should not be underestimated.

Alan Dillon’s advice to proceed with caution underscores the importance of plan longevity. With many factors influencing the milk and beef market, constant adaptability coupled with strategic planning is essential for long-term success.

Regardless of the decision, careful analysis and budgeting are critical for optimizing profit margins. As the season quickly approaches, it’s crucial to settle on a strategy that best aligns with your farm’s capabilities and business goals.

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