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Benchmarking update 2013
30 October 2013Paul 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.
Process of benchmarking at CAFRE
It’s all down to price!!!
Number of cows
Higher stocking rate
Kg liveweight/ha
Gro
ss m
argi
n/H
ecta
re
Per CowTop 25% The difference
Bottom 25%
Output 1043 172 871
Variable costs 341 130 471
Gross margin 692 326 366
Net margin* 334 600 -266
Net Profit per Cow** 237 584 -347
Cost of production (£/kg carcase) 2.42 1.77 4.19
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.
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
£/K
g
Suckler to beef farms ranked per hectare
£ per hectareTop 25% The difference
Bottom 25%
Output 1015 212 803
Variable costs 335 143 478
Gross margin 680 355 325
Net margin* 356 608 -252
Net Profit per hectare** 265 608 -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
Gro
ss m
argi
n/H
aHow are benchmarked suckler herds
comparing against NISBP target?
How do the enterprises perform?
Gross marginPer Hectare (£)
Gross margin £/cow/animal
sold/ewe
Beef finishing (Store to beef) 1056 404
Upland/lowland sheep 917 102
Beef finishing (Calf to beef) 703 354
Suckler to beef 670 692
Suckler to store 620 580
Suckler to weanling 515 465
Hill sheep N/A 58