Presentation on theme: "Benchmarking update 2013 30 October 2013 Paul McHenry."— Presentation transcript:
Benchmarking update 2013 30 October 2013 Paul McHenry
CAFRE Benchmarking Approximately 450 businesses benchmarked/year. Average farm size 61 hectares. Average suckler herd - 44 cows. Average ewe flock - 264 ewes. 64% of the businesses farming full-time.
It’s all down to price!!! Number of cows £/Kg carcase
Higher stocking rate Kg liveweight/ha Gross margin/Hectare
Per Cow Top 25%The difference Bottom 25% Output1043172871 Variable costs341130471 Gross margin692326366 Net margin*334600-266 Net Profit per Cow**237584-347 Cost of production (£/kg carcase)2.421.774.19 Range in performance for suckler to beef farms in 2011/12 * Ranked by net margin/cow **No allowance for family labour cost
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.
Trends over last four years on the top 25% of suckler to beef farms
Trends over last four years on average suckler to beef farms £/Kg
Suckler to beef farms ranked per hectare £ per hectare Top 25%The difference Bottom 25% Output1015212803 Variable costs335143478 Gross margin680355325 Net margin*356608-252 Net Profit per hectare**265608-343 * Farm ranked by net margin/ha ** No allowance for family labour
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.
Kg live weight produced/ha Gross margin/Ha How are benchmarked suckler herds comparing against NISBP target?
How do the enterprises perform? Gross margin Per Hectare (£) Gross margin £/cow/animal sold/ewe Beef finishing (Store to beef)1056404 Upland/lowland sheep917102 Beef finishing (Calf to beef)703354 Suckler to beef670692 Suckler to store620580 Suckler to weanling515465 Hill sheepN/A58