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Benchmarking update 2013 30 October 2013 Paul McHenry.

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Presentation on theme: "Benchmarking update 2013 30 October 2013 Paul McHenry."— Presentation transcript:

1 Benchmarking update October 2013 Paul McHenry

2 CAFRE Benchmarking Approximately 450 businesses benchmarked/year. Average farm size 61 hectares. Average suckler herd - 44 cows. Average ewe flock ewes. 64% of the businesses farming full-time.

3 Process of benchmarking at CAFRE

4

5 It’s all down to price!!! Number of cows £/Kg carcase

6 Higher stocking rate Kg liveweight/ha Gross margin/Hectare

7 Per Cow Top 25%The difference Bottom 25% Output Variable costs Gross margin Net margin* Net Profit per Cow** Cost of production (£/kg carcase) Range in performance for suckler to beef farms in 2011/12 * Ranked by net margin/cow **No allowance for family labour cost

8 Why the difference? Lower total common fixed costs of £274/cow. Each cow produced 61kg more beef worth £172/cow. Lower variable costs of £130/cow.

9 Control of fixed costs

10 Trends over last four years on the top 25% of suckler to beef farms

11 Trends over last four years on average suckler to beef farms £/Kg

12 Suckler to beef farms ranked per hectare £ per hectare Top 25%The difference Bottom 25% Output Variable costs Gross margin Net margin* Net Profit per hectare** * Farm ranked by net margin/ha ** No allowance for family labour

13 Trends in benchmarking On average the farms producing the highest amount of beef or lamb per hectare are making the highest gross margin per hectare. As a guide variable costs are approximately 35% of output on top 25% farms and 60% of output on bottom farms. The difference in performance is equivalent to £608 per hectare.

14 Kg live weight produced/ha Gross margin/Ha How are benchmarked suckler herds comparing against NISBP target?

15 How do the enterprises perform? Gross margin Per Hectare (£) Gross margin £/cow/animal sold/ewe Beef finishing (Store to beef) Upland/lowland sheep Beef finishing (Calf to beef) Suckler to beef Suckler to store Suckler to weanling Hill sheepN/A58


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