Menu

LFA breeding flocks

- 24 November 2006
>More in

Key points:



  • Results from a sample of 45 flocks in the hill and uplands show the group (average flock size 582) achieved an average net loss of £13.36 a ewe.
  • As with lowland farms, top third flocks are attaining higher value of lamb output. This is through better lambing performance and better returns per lamb sold either as a finished or a store animal.

LFA England breediong flockCosts



  • Total variable and replacement costs were over £4 a ewe higher in the top third group than the bottom third, mainly due to total cost of feed. However, this was more than offset by the better lambing rates and number of lambs reared.
  • The bottom third of producers sell half of their lambs as stores, which is probably due to geographic location. But breed is likely to be an influential factor and could also account for the lower return per lamb sold as store.
  • A significant variation occurs in the level of fixed costs between top and bottom third but when the family labour, rental value and interest on working capital are taken into account, the fixed and non-cash costs are closer at over £5 a ewe difference compared with £15 before the non-cash costs are considered.

LFA England breeding flocks



  • Net margins including non-cash costs show an average loss of £42 with the top losing over £28 a ewe and bottom at more than £50 a ewe.
  • Variation of net margin, including non-cash costs, is largely down to output factors. For LFA flocks this highlights cost structures are less of an issue and that technical performance has been the main margin driver.
  • Looking at total costs, the disparity between the top and bottom group is just over one pound.













































































































































































































FINANCIAL PERFORMANCE 2005/06 [£/EWE]

 

 Bottom third Average Top third
Number of flocks in sample

15

 45 15
       
OUTPUT (£/EWE)      
Lamb sales after valuation changes 45.03 56.05 70.16
Wool 1.06 1.17 1.35
Total output 46.08 57.21 71.51
       
VARIABLE AND STOCK COSTS      
Replacement costs 10.35 10.86 11.63
       
Variable costs      
Total concentrates 5.35 6.50 7.11
Other feeds 0.59 0.99 0.72
Forage 2.82 3.02 2.79
Total feed and forage 8.77 10.51 10.62
Veterinary 4.12 4.86 4.82
Bedding 0.16 0.29 0.11
Other costs 2.08 2.16 2.57
Total variable and replacement costs 25.47 28.67 29.75
Gross margin 20.62 28.54 41.76
       
FIXED COSTS      
       
Paid labour 15.81 11.30 8.93
Power and machinery repairs 8.73 8.49 8.89
Administration 4.09 4.02 4.10
Property charges 5.01 3.39 2.42
Land resource costs (eg land rent) 9.14 7.27 5.74
Machinery depreciation and fixtures 9.35 6.88 6.03
Total fixed costs excluding non-cash costs 52.59 41.90 37.21
Net margin excluding non-cash costs -31.97 -13.36 4.56
       
NON-CASH COSTS      
Value of unpaid family labour 14.48 19.48 20.98
Rental value of owned land 1.37 2.05 4.90
Interest on working capital 7.06 6.88 6.80
Total non-cash costs 22.91 28.41 32.68
Total costs 100.97 98.98 99.63
Net margin including non-cash costs -54.88 -41.76 -28.12

 














































































PHYSICAL PERFORMANCE 2005/06
  Bottom third Average Top Third
Average number of ewes 546 582 439
Lambs reared per 100 ewes 122 136 153
Return per lamb sold finished [£] 43.04 44.20 44.75
Carcuss weight finished [kg] 19.36 20.00 20.46
Return per sold store [kg] 33.01 34.25 37.60
       
LAMBS SOLD [%]      
Slaughter 16 32 45
Stores 50 41 33
Breeding 34 26 22
Closing valuation 0 1 0
Total ewe and lamb concentrates [kg/ewe] 37 53 58
Stocking rate [livestock unit/ha] 0.73 1.35 1.41
Note: Figures may not add to totals due to rounding
Source: Promar International



Back to the ‘Business Pointers Guide’


 

See more