Partnership turns store lambs into £s
Partnership turns store lambs into £s
By Jeremy Hunt
TWO Cumbria farmers, who saw an opportunity in this seasons lamb market, joined forces last October for a four-month finishing partnership based on store lambs costing as little as £2.50 each.
"There was a chance to be creative and to try to make a margin out of store lambs that were almost being given away in some markets. It was disheartening for many Herdwick men to be selling sheep at such low prices but I felt there had to be a bit of profit in them as prime lambs," says Mason Weir, from Dowthwaite Head, Matterdale Head, Penrith.
He is one of the staunchest supporters of the lightweight lamb market and last year had sold all his own lambs by September.
Mr Weirs mixed flock of 1100 ewes start lambing in March in readiness for the early lightweight market. But with all home-bred lambs sold by early autumn Mr Weir began to consider a store lamb finishing venture for 1998/99.
"I needed a shed big enough to carry a worthwhile number of lambs and through a contact I was put in touch with Jim Akrigg at Temple Sowerby, Brough, just a few miles from Kirkby Stephen auction mart. "We worked out an arrangement between us covering accommodation, labour, feed and other costs involved," says Mr Weir. Although many other finishers are relying on a significant late season lift in prime lamb prices, the Weir-Akrigg partnership can only continue until mid-February.
"Mr Akrigg and his family have bought a farm in Canada and are emigrating in March. We knew we only had use of the shed for a limited period, so any margin had to be earned quickly," says Mr Weir.
The partnership will have finished about 800 lambs by mid-February. Suffolk x Mule, Swaledale, Cheviot and Herdwick lambs have been bought-in throughout the autumn. Although Suffolk crosses at £19 apiece and weighing about 34kg were among the dearest, large numbers of Herdwick and Swaledale lambs at 22kg were bought for as little as £2.50. The last batch of 70 Swaledale store lambs were bought in mid-January at £8 each.
"I have had to keep buying cheaper lambs to subsidise the dearer ones because Suffolk crosses weighing 38kg have only been breaking even. We can turn these small lambs into a meaty carcass within a matter of weeks. Herdwick lambs weighing 24-27kg were making £13.80 in mid-January. They did not come into the shed until Dec 15."
Costings for the finishing period have been based on an average buying-in price across all breeds of £8.50. The shed is taking 2.5 big round bales of straw each week and one of hay costed at £33 a week. The 18% protein pellet ration is being fed ad lib and at a cost of £120/t. Average weekly lamb feed cost is estimated at 65p.
"Our feed cost estimate could be on the low side. Production costs can soon add up to £10 a lamb," says Mr Weir.
Herdwicks and smaller Swaledale lambs selling at up to 32kg are leaving the highest margin. Suffolk-cross and Cheviot lambs, the most expensive of all lambs bought this winter in anticipation of better quality earning a higher price, have been marketed at 35-38kg but they have only been making £19-£24 apiece, that is not much more than breaking even.
"If we finish up making an average profit of £5 a lamb we will have done OK. Cashflow in all farm businesses has been bad. This was just one way I could see of trying to make something out of a commodity that the market did not seem to want.
"Smaller lambs grew better than larger-framed lambs, but the high protein diet has been fed to achieve weight and not frame." *
FINISHINGLAMBS
• Margin to be made?
• Weekly feed cost 65p a lamb.
• Average profit £5 a lamb?