Operation costs are key to stay in profit

SHEEP PRODUCERS must get to grips with enterprise costs on a farm-by-farm basis, improve replacement programmes and lamb output to secure profit, an independent adviser told delegates.

Lesley Stubbings said too many units were failing to understand operating costs. “Essentially, this is all the costs that would be removed if the unit wasn”t there,” she explained.

Identifying these allows producers to see where enterprises need tightening up to release more margin. “For example, replacements are commonly the biggest single variable cost. But the temptation is to hold on to older ewes in the hope she”ll go round one more time”. It”s a false economy,” she warned.

Unproductive ewes accounted for 9% of a flock, according to recent calculations, she said. “All too often old ewes die and their lifetime productivity dives. She”s cost, but not delivered. Worse still, she”s worth nothing and will cost to be taken away.

“It is essential to realise a cull ewe”s value – 35 at the end of her productive life is a significant part of her lifetime margin,” she explained.

Lamb output also needs more thought. “It starts with colostrum. Insufficient intake can affect liver and intestine development and that affects lifetime growth.

“Don”t put lambs on old pasture. Many fail to achieve optimum growth because of poor feeding. A good grass/clover sward can support a liveweight gain of 300g a day. As a rule of thumb every 1% increase in clover will see a 1% increase in lamb performance,” she said.

Likewise, managing sward height can also reduce the need to feed lactating ewes. “At 3cm a ewe with twins needs about 1kg concentrate a day. Lift sward height to 4cm and that falls to 0.5kg and over 4cm she should need none at all,” said Ms Stubbings.