Management Matters: Flexibility key to profitable future

Buoyant sheep prices are no reason to stop looking for ways to improve profitability, even on a low-input system. Paul Spackman reports

With the bulk of this year’s lamb crop now sold, Aled Jones is confident Tregeiriog Farm should make a respectable profit this year.

Fat lamb prices are likely to average just under £65 a head over the year and nothing has been sold for less than £60 a head. The lowest deadweight price received was £3.40/kg and cull ewes have fetched a decent price – typically making £50 a head.

Lamb numbers were down on previous years due to the prolonged 09/10 winter, but the decision to keep lambs longer to a slightly heavier weight has made up for that, he says. “Generally, I haven’t sold any fat lambs under 40kg, whereas normally I’d start selling at 36-38kg,” he says. “The only thing about keeping them heavier is that you have to be careful you don’t get too many H [fat class] grades.”

Mr Jones believes the increased area [from eight to 22 acres] of chicory/clover grazing within his extensive grazing system has helped overcome this potential problem this season.

“When the lambs are nearly fit I give them another fortnight on the chicory and have been really impressed with the results. They’ve gained the weight and only put on a bit of fat.”

He says more lambs have been graded R or U for conformation, with even a few E grades. “That’s unbelievable for these hill breeds.” Fat class has also improved, with around three-quarters graded L.

The only real problem with the chicory so far has been the amount of thistle emerging within the re-seeded ley. Mr Jones worries that spraying will kill the chicory and clover, so control is likely to involve more labour-intensive methods such as weed-wiping, spot spraying, or regular topping next spring before the thistles get chance to set seed.

Despite this, he plans to increase the chicory area again next year. He acknowledges this extra work, combined with the 160 big bales of haylage made as an insurance policy for the coming winter, represents a move away from the low-input system originally established, “but for any system to work in the long run, it has to be flexible and not set in stone. It is a bit more work, but the benefits far outweigh it”.

High index move

The increasing use of high-index rams is another example of how the system is evolving at Tregeiriog Farm.

A total of 1250 ewes will be put to the ram in the coming season, around 400 of which will be put to four Aberdale rams carrying the Inverdale gene. These rams are leased on an annual contract from breeding company Innovis at a total cost of around £600. “We’re getting some of the best genetics and there’s no way I’d be able to afford that otherwise. It would probably cost that to buy one ram this year,” Mr Jones says.

He hopes the Texel-based Aberdales will give a better lambing percentage of up to 200%. The lambs are also hardier than mule lambs, resulting in better survival rates – something that is particularly important given the farm’s upland location and use of outdoor lambing.

The company requires at least 40 ewe lambs per ram in order to qualify for the contract price premium (over an average SQQ price) set at the beginning of the season. “Even at one lamb a piece this should be easily possible,” he says.

This year, the premium was worth £3 a head on top of the average SQQ price over the three weeks preceding sale. For one load of 160 A grade (38-42kg) cross-bred ewe lambs recently sold to a returning buyer from Anglesey this worked out at £67 a head. Innovis pay for EID tags and the buyer pays haulage. Other batches are also set to go shortly, with around 10 to remain on the farm.

Mr Jones says the contract works well, although with standard mule lambs fetching £80 a head recently, he suggests the Innovis premium will need to increase next season. “Demand for [Aberdale] ewe lambs is exceeding supply, so there needs to be a system of bonuses that makes it more attractive for people to breed them.”

Next season will also see another 300 ewes put to home-bred Bluefaced Leicester rams. “I’ll probably use five rams, as I’ve bred them myself, so there’s no extra cost from using them all.”

Another 200 old ewes will go to Beulah rams and 220 yearlings to Lleyn tups. Two new Lleyn rams were bought this year, costing a total of £1000. This was partly offset by a £300 grant from Hybu Cig Cymru (Meat Promotion Wales) under its genetic improvement programme.

“It’s cost us £700 overall and we’ve ended up with two decent rams, one of which is in the top 5% of the Lleyn breed,” Mr Jones says. “It sometimes feels like we’re being pushed towards higher indexes, but I can see the benefits.

“Lambing outside is high risk and the Beulah isn’t the toughest of hill breeds. The Lleyn is an improvement and that’s where our focus for replacements will be from now on. The higher index lambs also tend to get more muscle, so we hope for a lot less O grades next year.”

Mr Jones’ main concern with the high index system is that high-fat class is often regarded as being a negative trait, yet hill breeds require a degree of body fat to get through the harsher winter conditions experienced on upland farms.

In addition to the purchases already mentioned, two Charollais-cross-Texel tups have been bought to put to the farm’s cross-bred flock of 150 mules and Aberdales. One of the main reasons for using this type of ram is to hopefully help identify the cross-bred lambs without the need for notching, he explains.

Winter preparations

Alongside genetics, nutrition is a key part of the preparations for winter at Tregeiriog. All ewes have received three trace element boluses – cobalt, selenium + iodine and copper – at a cost of £1.30/ewe. “We did it for the first time last year and although we didn’t see massive benefits, last winter showed the sheep need all the help they can get, so I reckon it’s worth doing.”

He hopes addressing the trace elements will also improve scanning percentages next spring. The main flock averaged 150-155% this year and the yearlings nearer 125% and he expects a 10% improvement can be achieved. “At the moment the ewes are in good condition and have got plenty of grass, so I’m optimistic for next year.”

Some 20t of Rumenco feed blocks have also been bought in. The blocks are customised to the farm’s requirements, using grass sampling and ewe blood tests to identify specific areas of deficiency.

Glastir plans on hold

Plans to enter the new Glastir agri-environment scheme have been put on hold for at least the next 12 months. “The information about how the scheme will work has finally filtered through, but there are still too many grey areas,” says Mr Jones. “I want to see how it actually works on other farms before we make a commitment to join here.”

In the meantime, Tregeiriog will continue to receive payments under the old Tir Gofal and Tir Mynydd schemes.