Benchmarking update October 2013 Paul McHenry

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.

Process of benchmarking at CAFRE

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% 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

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.

Control of fixed costs

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% Output Variable costs Gross margin Net margin* Net Profit per hectare** * 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) Upland/lowland sheep Beef finishing (Calf to beef) Suckler to beef Suckler to store Suckler to weanling Hill sheepN/A58