Production costs for forages differ significantly in Western Europe

Costs for finishing cattle on home-grown feed vary between countries

In Western Europe forages are frequently used in the feeding of cattle. Next to purchased feed also home-grown feed like hay, grass silage and maize silage can be fed to the animals. Feed costs in beef finishing systems based on forages have a proportion of 25 - 50 per cent of total costs. Thus feed costs are one of the major costs components.

The master thesis from Friederike Rösner provides answers to the questions ‘What are the actual operating costs when it comes to the production of forages?’ and ‘Are the costs of production for forages similar in different countries and farms?’

Three important beef producing countries with different natural conditions, production systems and markets were selected for the study: Germany, France and the United Kingdom. In each of these countries two case study farms were analysed.

The study comes to the conclusion that there are major differences in the costs of production for forage harvesting in selected beef farms and countries. The major results are:

1. Where maize silage is produced it is the cheapest forage option.
2. Input costs (fertilizer, seeds, plant protection) play a bigger role for the costs of the individual operation than labour input when operations are conducted by family labour. Therefore labour input and costs for the individual operation are not always proportionate. In most family operated activities working time and costs are closely related though.
3. Grass silage in round bales is the most time-consuming forage option given the required working time and consequently the costs.
4. Overhead costs vary strongly between the investigated farms and countries. Especially the German farms have a competitive disadvantage from land costs.
5. Certain production steps could be outsourced to reduce production costs more effectively. Especially steps that are performed once a year and require specialized equipment that cannot be transferred to other crops or uses (e.g. harvesting of maize silage) show high potential for outsourcing, which is reflected in all production systems. 

The main reasons for the variation between the different farms and countries are:

1. Division of labour (contractor / family labour)
2. Costs for land
3. Costs for other overhead items
4. Costs for inputs
5. Yield in DM

Cost calculation for forage harvesting in selected beef farms and countries
(Masterthesis Friederike Rösner, pdf-document, 3.340 KB)