The costs associated with a 20-month dairy-beef heifer system were recently highlighted at a Teagasc beef farm walk.

The figures used in the Teagasc example assume a heifer calf born on March 1, and slaughtered the following November at 20 months-of-age.

It is important to highlight that the figures used in the example are guideline costings and different figures will be relevant to different farms, with costs higher on some farms and lower on others.

The table below outlines guideline costings for a 20-month dairy-beef heifer system:

According to the Teagasc figures, it costs €820 to rear a heifer from calf to slaughter at 20 months-of-age.

It is also important to highlight that this figure excluded the purchase price of the calf.

The highest amount of these costs are in the first year at €525, with the remaining €295 in costs associated with the calf's second season at grass.

In the guideline costings, milk replacer costs are valued at €75, assuming 1.5 bags of milk replacer are used per calf. Concentrate costs in the first year are valued at €170, assuming 480kg of concentrate fed in the first year.

Straw costs in the first year are valued at €32, assuming a straw price of €40/bale, while veterinary costs in the first year are estimated at €55/calf.

In the second year, the largest cost is concentrates, with the assumption 300kg of concentrates is fed at a cost of €98.

Grazed grass valued at 6c/kg dry matter is valued at €60/head in the second season at grass.

The costings show that while there is an opportunity to generate a net margin in this system, if a high calf purchase price is combined with a reduced beef price, the opportunity for a net margin is totally eroded.