Rising calf prices will significantly erode profit margins on dairy-beef farms this year, according to figures presented at the 2026 Teagasc DairyBeef 500 Conference.

At the event which took place at the Ballykisteen Hotel in Co. Tipperary on Thursday, January 29, Teagasc DairyBeef 500 programme coordinator, Alan Dillon highlighted that beef farmers have no indication as to where beef price will be when calves purchased this spring reach slaughter age.

He presented figures which indicated that at a calf purchase price of €500/head, calf-to-beef farmers would be generating a net loss of €40/head, assuming a carcass value of €1,860/head.

However, he highlighted that the same calf purchased at €250/head would secure a margin of €110/head, assuming the same carcass value.

These figures were based on a 23-month Angus steer beef system with costs at €1,400/head (excluding calf purchase price) and an assumed carcass-weight of 310kg and a carcass value of €1,860/head or €6/kg.

Assuming a beef price of €7.50/kg and the same system as above, a calf purchased at €500/head was estimated to make a margin of €425 in the 23-month rearing period.

DairyBeef500 programme adviser Tommy Cox said that if the bottom third of demonstration farmers in terms of profitability pay €200 more/calf this year, "they're going to leave very little profit for themselves".

Optimism for dairy-beef profitability

The figures highlighted on the night indicated that dairy-beef farmers generated a good margin in 2025.

The average net profit/ha excluding direct payments in 2025 on these farms was €1,465, up from €717/ha in 2024.

It was noted that these farms benefitted from lower calf prices and higher beef prices for their 2025 profitability figure.

The top third of the DairyBeef500 demonstration farmers generated a net margin of €2,246/ha in 2025, while the bottom third of these farmers generated a net margin of €666/ha.