Strong store market but do all your sums
Strong store market but do all your sums
STRONG store cattle prices this spring make it crucial to know finishing costs and eligibility for subsidy claims before buying store cattle, according to one consultant.
Current prices are strong, but not out of line, says Signet beef consultant Ian Ross. "However, it is essential to do your sums and determine eligibility for subsidies which can account for more than £185/head."
Last week, he calculated a break-even cost of about 125-130p/kg to help one client decide whether to sell store cattle or keep them on. "Buyers must, therefore, purchase stores for less than this price to make a profit.
"Dont follow the herd, compare like with like. If you dont qualify for super extensification premium, you cannot compete with producers who can."
Mr Ross advises spending an hour or so to determine eligibility for subsidy claims before going to market. "There are two separate calculations, firstly do you have enough area for beef special premium. But the more critical calculation is whether you can claim for extensification."
With heifers, care is needed to avoid paying too much. Recent changes in suckler cow premium rules could explain strong heifer prices, says Mr Ross. *