April and May are always two big months when it comes to cattle sales, with a lot of grass buyers buying in these months every year.

In a lot of grass cattle systems, cattle are purchased in the spring and sold in the autumn.

Farmers who sold cattle last October and coming back out to buy now are finding some big changes at the ringside, including prices increasing by €500-€800/head.

This has meant some head scratching has taken place as to whether to stick with the same system or move to something different.

It’s never good to chop and change too much, as you usually get caught somewhere along the line.

However, if you stick with the same system, the good years will generally even out with the bad ones.

I had a phone call from a farmer last week who sold 40 bullocks at the end of last October. They averaged 620kg and sold for an average price of €1,800.

He was very happy at the time. He had purchased the bullocks in the west of Ireland the previous April 2024 at an average weight of 430kg at €2.86/kg or €1,200/head leaving a difference between the buying and selling price before any costs are included of €600/head.

He takes out a €50,000 stocking loan every year in March and has to have it cleared by November. The same bullocks this year are costing €4.02/kg or €1,728/head at the same weight, so instead of buying 40 bullocks with his €50,000 he can only buy 29.

Reducing numbers and spreading less fertiliser are very real options, but this farmer would like to keep numbers up.

Increased funds

To purchase the same numbers would require a stocking loan of €70,000 – €20,000 more than the previous year. Housing isn’t an option on the farm.

Looking at 600kg bullocks in the mart today they are coming close to €2,500.

If prices stayed the same his margin could potentially increase to €700/head, but he is worried that beef price won’t stay over €7/kg and it’s the beef price that is driving the price of 600kg+ cattle at the moment.

He could move to dairy beef stock, but demand for Aberdeen Angus cattle and Hereford crosses has been good in the last few weeks.

Good types are in short supply, and in many cases some of the better-quality Aberdeen Angus have been hitting close to the money continentals have been making.

Lessor types are easier bought but will also be easier bought when it comes to the back end. Table 1 outlines a few options and potential margin from grazing different types of cattle at the moment.

The first option is this farmer’s traditional system of buying a good continental store bullock around 400kg and selling him in the back end at 600kg.

Grazing costs are the largest at €198/head, with meal coming in at €52.50/head for 5kgs/head/day fed for a month before sale next October.

The price needed to make a €100/head margin is €3.76/kg is at today’s prices very achievable, but selling in April and selling in October can be two very different things.

The weanling budget isn’t that different. A lower purchase price is cancelled out by the requirement to buy 10 extra animals to maintain stocking rates.

At the same level of risk with this system there is potential to make another €1,000 gross on the back of grazing 10 extra animals. The dairy beef system is also surprisingly similar in finance requirements.

Increase numbers will also be needed for the dairy beef heifer grazing option.