e-profit Monitor Analysis Drystock Farms 2015

Transcription

1 Aimal & Grasslad Research ad Iovatio Programme Teagasc e-profit Moitor Aalysis Drystock Farms 2015

2 e-profit Moitor Aalysis Drystock Farms 2015 Teagasc e-profit Moitor Aalysis Drystock Farms 2015 Authors Teagasc Specialist Service i

3 e-profit Moitor Aalysis Drystock Farms 2015 ii

4 e-profit Moitor Aalysis Drystock Farms 2015 Table of Cotets Foreword iv Suckler to Beef Farms Suckler to Wealig / Store Farms No-Breedig Beef Farms Compariso 2014 v 2015 (Beef Farms) 13 Lowlad Sheep Farms Hill Sheep Farms Compariso 2014 v 2015 (Sheep Farms) 25 Appedix Tables 29 Ackowledgemets iii

5 e-profit Moitor Aalysis Drystock Farms 2015 Foreword This year s aalysis of the 2015 beef ad sheep eprofit Moitors is made up of 553 beef farms ad 137 sheep farms from across the coutry. It also looks at the eprofit Moitors from 276 beef ad 41 sheep farms that completed data for both 2014 ad 2015 ad compares the differeces i output, costs ad profits o those farms from oe year to the ext. Drystock farmers that have completed a eprofit Moitor for 2015 should bechmark their farms aalysis with the eterprise i this booklet that best matches their ow. To aid this we have icluded beef ad sheep tables behid the back cover that you ca fill i from your ow aalysis. By foldig this out you ca the compare your farms figures with ay of the tables i the booklet. Where the Top 1/3 of farmers figures are preseted i the tables this refers to the Top 1/3 of farms withi a eterprise whe the farms were raked o their gross margi per hectare excludig ay premia paymets. Gross margi excludig premia per hectare is a importat idicator because it highlights the curret level of techical efficiecy at which the eterprise is operatig as well as showig the potetial for improvemet. There is a high correlatio betwee this figure ad et profit per hectare. The Appedix Tables iclude more detailed aalysis of the differet eterprises ad show the rage i both physical ad fiacial performace that exists from the top to the bottom farms whe they were raked o gross margi excludig premia per hectare. They also have more detail o the breakdow of the variable ad fixed costs per hectare for beef ad sheep farms i Pearse Kelly, Head of Drystock Kowledge Trasfer iv

6 e-profit Moitor Aalysis Drystock Farms 2015 Sucklig to Beef Farms 2015 Beef farms that have a suckler cow herd ad where the progey of the herd are brought through to slaughter. 1

7 Sucklig to Beef Farms 2015 The top 1/3 of farms geerated a gross output of 2,157 per ha compared to 1,465 per ha o the average farms, a differece of 692 per ha or 47%. The higher output o the top farms reflected higher stockig rate (+0.53 LU per ha), higher output per LU (+36kg) ad higher output value per kg (+9c per kg LW). Output per ha o the top 1/3 of farms was 882 kg or 42% higher (+261 kg) tha o the average farm (621kg per ha). Average suckler to beef farms had lower variable costs tha the top farms at 690 per ha versus 913 per ha. However, as a percetage of gross output they accouted for 47% o the average farms compared to 42% of the output o the top farms. The gross margi was 1,244 per ha o the top 1/3 of suckler to beef farms which was 60% higher or 469 per ha higher tha those o the average farms. The biggest variable cost o suckler to beef farms i 2015 was purchased forage ad cocetrate accoutig for 40% or 241 per ha of total variable costs. The average suckler to beef farm i 2015 geerated a et profit of 246 per ha excludig premia compared to 631 per ha o the top 1/3 of farms. 2

8 e-profit Moitor Aalysis Drystock Farms 2015 Sucklig to Beef Farms 2015 Table 1 Profit Moitor per hectare aalysis (159 Farms) Physical Average Top 1/3 Top v Average Farm Size (cattle ha) Stockig Rate (LU/ha) Liveweight Produced (kg/lu) Liveweight Produced (kg/ha) Fiacial ( / ha.) Gross Output Value 1,465 2, Variable Costs Gross Margi 775 1, Fixed Costs Net Profit Excl. Premia Total Premia * Total Premia Retaied * 150% 215% +65% (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 3

9 e-profit Moitor Aalysis Drystock Farms 2015 Sucklig to Beef Farms 2015 Sucklig to Beef Farms Gross Margi Per Hectare LU / ha. 1, kg LW per LU Per Hectare 1,400 1,200 1, LU / ha. 332 kg LW per LU 775 1, Average Top 1/3 Sucklig to Beef Variable Costs per Hectare Feed Fertiliser Vet / AI Cotractor Other 164 4

10 e-profit Moitor Aalysis Drystock Farms 2015 Sucklig to Wealig / Store Farms 2015 Beef farms that have a suckler cow herd ad where the progey of the herd are sold as either wealigs or stores for fiishig o aother farm. 5

11 e-profit Moitor Aalysis Drystock Farms 2015 Sucklig to Wealig / Store Farms 2015 The top 1/3 of producers i this system carried 20% more stock at 1.92 LU per ha versus 1.60 LU per ha for the average. They also produced 41 kg per LU more tha the average (332 kg v 291 kg). Gross Output was 1,072 per ha i the average group, 30% or 447 per ha lower tha the top 1/3 of farms ( 1,519 per ha). Variable costs were 575 per ha o the average farms or 15% lower tha o the top 1/3. However, as a proportio of output they accouted for 54% ad 44% of the output o the average ad top 1/3 of farms, respectively. Average fertiliser costs ad feed costs (purchased forage ad cocetrates) accouted for 51% or 291 per ha of total variable costs i Gross margi per ha o the top 1/3 of sucklig to wealig/ store farms was almost 70% higher whe compared to the average farm. The top 1/3 of farms geerated a gross margi of 846 per ha compared to 498 per ha o the average farm. The lower gross margi o the average farms was ot sufficiet to cover all the fixed costs of 514 per ha. This had the effect of geeratig a et loss of 16 per ha before premia o these farms resultig i them retaiig 97% of their premia. I cotrast, fixed costs o the top 1/3 of sucklig to wealig/store farms were 620 per ha, leavig a et profit before premia of 226 per ha. 6

12 e-profit Moitor Aalysis Drystock Farms 2015 Sucklig to Wealig / Store Farms 2015 Table 2 Profit Moitor per hectare aalysis (237 Farms) Physical Average Top 1/3 Top v Average Farm Size (cattle ha) Stockig Rate (LU/ha) Liveweight Produced (kg/lu) Liveweight Produced (kg/ha) Fiacial ( / ha.) Gross Output Value 1,072 1, Variable Costs Gross Margi Fixed Costs Net Profit Excl. Premia Total Premia * Total Premia Retaied * 69% 124% +55% (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 7

13 Sucklig to Wealig / Store Farms 2015 Per Hectare 1,200 1, Sucklig to Wealig / Store Farms Gross Margi Per Hectare LU / ha. 291 kg LW per LU LU / ha. 332 kg LW per LU Average Top 1/3 Sucklig to Wealig / Store Variable Costs per Hectare Feed Fertiliser Vet / AI Cotractor Other

14 e-profit Moitor Aalysis Drystock Farms 2015 No-Breedig Beef Farms 2015 Beef farms that buy i calves, wealigs or stores that fiish them o their farm or sell them as stores. Some of these farms may have suckler cows but they make up a small proportio of their herd. 9

15 e-profit Moitor Aalysis Drystock Farms 2015 No-Breedig Beef Farms 2015 The gross margi o the top 1/3 of o-breedig beef farms was 611 per ha higher tha the average ( 1,426 versus 815 per ha). The higher gross margi was due to the higher level of output achieved o the top 1/3 of farms (gross output was 980 per ha higher o the top 1/3 of farms). The icreased gross output o the top performig herds came from three key areas; a higher output per LU, a higher stockig rate ad a higher price per kg liveweight sold. Output per LU was 78 kg higher tha the average o the top 1/3 of farms (489 kg versus 411 kg per LU). Stockig rate was 0.47 LU per ha higher (2.28 LU per ha o top 1/3 of farms versus 1.81 LU per ha o the average farms). The top 1/3 of farms achieved a price of 2.39 per kg live-weight versus 2.27 per kg achieved o the average farms. Variable costs were 369 per ha higher o the top 1/3 of farms but the higher output offset these costs (variable costs made up 47% of output o the top 1/3 versus 52% of output o the average farms). Purchased feed ad cocetrates accouted for almost 50% ( 435 per ha) of variable costs o o-breedig farms The average o-breedig beef farm made a et profit of 241 per ha whereas the sigificatly higher gross output o the top 1/3 of o-breedig beef farms resulted i a et profit of 663 per ha before premia. 10

16 e-profit Moitor Aalysis Drystock Farms 2015 No-Breedig Beef Farms 2015 Table 3 Profit Moitor per hectare aalysis (157 Farms) Physical Average Top 1/3 Top v Average Farm Size (cattle ha) Stockig Rate (LU/ha) Liveweight Produced (kg/lu) Liveweight Produced (kg/ha) 744 1, Fiacial ( / ha.) Gross Output Value 1,688 2, Variable Costs 873 1, Gross Margi 815 1, Fixed Costs Net Profit Excl. Premia Total Premia * Total Premia Retaied * 152% 221% +69% (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 11

17 No-Breedig Beef Farms ,800 1,600 1,400 No-Breedig Beef Farms Gross Margi Per Hectare LU / ha LU / ha. 489 kg LW per LU 1,426 Per Hectare 1,200 1, kg LW per LU Average Top 1/3 No-Breedig Variable Costs per Hectare Feed Fertiliser Vet / AI Cotractor Other

18 Compariso (Beef Farms) Where a farm completed a eprofit Moitor o their beef eterprise for both 2014 ad 2015 they are icluded i this aalysis. It icludes both sucklig ad o-breedig beef eterprises. 13

19 Compariso (Beef Farms) Gross margi (excludig premia) icreased from 551 per ha i 2014 to 747 per ha i 2015 (a icrease of 196 per ha). This was due primarily to a icrease i gross output value of 218 per ha ( 1,283 per ha i 2014 compared to 1,502 per ha i 2015) This icrease i output value resulted from improved aimal performace i what was a reasoably good grass growig seaso but the mai factor was the improved store ad beef prices which prevailed for most of Variable costs remaied virtually uchaged up oly margially by 22 per ha o 2014 figures. Reflectig the fact that feed ad fertiliser prices were o a par with where they had bee i the previous year. The dilutio of variable costs is quite evidet however whe viewed agaist the rise i gross output value. I 2014 variable costs accouted for 57% of gross output compared to 50% i Net profit excludig premia icreased from a slight profit of 14 per ha i 2014 to a figure of 180 per ha i

20 Compariso (Beef Farms) Table 4 Profit Moitor per hectare aalysis (276 Farms) Chage Physical Stockig Rate (LU/ha) Liveweight Produced (kg/lu) Liveweight Produced (kg/ha) Fiacial ( / ha.) Gross Output Value 1,283 1, Variable Costs Gross Margi Excl. Premia Fixed Costs Net Profit Excl. Premia Total Premia* Premia Retaied* 103% 137% +34% (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 15

21 Compariso (Beef Farms) 400 Variable Costs per Hectare - All Cattle Farms 2014 vs Cocetrates Fertiliser Veteriary Cotractor Other 16

22 e-profit Moitor Aalysis Drystock Farms 2015 Lowlad Sheep Farms 2015 Sheep farms that have lowlad flocks of ewes. The majority of which lamb i mid-seaso ad the lambs are fiished o the farm or sold as stores. 17

23 Lowlad Sheep Farms 2015 The top 1/3 of farms had a stockig rate of 2.3 ewes per hectare higher ad produced ad extra 0.1 lambs extra per ewe whe compared to the average farms. The combied effect of the higher stockig rate, higher weaig rate ad higher lamb price cotributed to output beig 458 per ha higher for the top 1/3 of farms ( 1,605 per ha vs 1,147 per ha). At 949 per ha the gross margi for the top 1/3 was 339 per ha higher tha the average. Net profit (excludig premia paymets) at 376 per ha for the top 1/3 of farms was 241 per ha higher tha for the average farms. Both variable ad fixed costs per ewe were 3 lower for the top 1/3 of farms compared to the average farms. The gross margi per ewe o the top 1/3 of farms at 91 per ewe was 16 per ewe higher tha what was achieved o the average farms. Purchased feed remais the sigle biggest variable cost o sheep farms ad at 21 per ewe this equates to almost 15 per lamb weaed. The cost of producig a lamb was 77 ad 87 for the top 1/3 ad average farms, respectively. 18

24 Lowlad Sheep Farms 2015 (Mid-Seaso Flocks) Table 5 - Profit Moitor per hectare aalysis (113 Farms) Physical Performace Average Top 1/3 Top v Average Flock Size Stockig Rate (LU/ha) Ewes/ha Lambs reared per ewe to ram Lambs reared per hectare Fiacial ( / ha.) Gross Output 1,147 1, Variable Costs Gross Margi Fixed Costs Net profit Excl. premia Total Premia * Premia Retaied* 133% 184% +51% Fiacial ( / Ewe) Gross Output Variable Costs Gross Margi Fixed Costs Net Profit Excl. Premia Average Lamb Price / head (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 19

25 Lowlad Sheep Farms 2015 Lowlad Sheep Farms Gross Margi Per Hectare Ewes / ha. 1,200 1, Ewes / ha Lambs per Ewe 949 Per Hectare Lambs per Ewe Average Top 1/3 Lowlad Sheep Variable Costs per Ewe Feed Fertiliser Cotractor Vet / AI Other

26 e-profit Moitor Aalysis Drystock Farms 2015 Hill Sheep Farms 2015 Sheep farms that have moutai or hill sheep flocks of ewes. Lambs are fiished o the farm or sold as stores. 21

27 Hill Sheep Farms 2015 The average umber of ewes mated i hill sheep flocks that completed a profit moitor for 2015 was 164. The average umbers of lambs reared per ewe mated was 1.0. Average sale price achieved per lamb was 73. Gross output per ewe joied to the ram was 69. Total variable costs per ewe were 38. Similar to lowlad producers purchased feed ad fertiliser were the two largest costs at 15 ad 8 per ewe, respectively. These accouted for 61% of the total variable costs per ewe. Gross margi o the hill sheep farms i 2015 was 31 per ewe. With average fixed costs of 31 per ewe, the average hill sheep ewe was left with a zero et profit excludig premia paymets. 22

28 Hill Sheep Farms 2015 Table 6 - Profit Moitor per ewe aalysis (24 Farms) Physical Performace Flock Size 164 Lambs reared per ewe to ram 1.00 Average Lamb Price / head 73 Fiacial ( / Ewe) Gross Output 69 Purchased Feed 15 Fertiliser & Lime 8 Veteriary 8 Cotractor 3 Other Variable Costs 4 Total Variable Costs 38 Gross Margi 31 Total Fixed Costs 31 Net Profit Excl. Premia 0 23

29 Hill Sheep Farms 2015 Hill Sheep Variable Costs per Ewe Feed Fertiliser Vet / AI Cotractor Other 8 24

30 Compariso (Sheep Farms) Where a farm completed a eprofit Moitor o their sheep eterprise for both 2014 ad 2015 they are icluded i this aalysis. It oly icludes lowlad sheep farms. 25

31 Compariso (Lowlad Sheep Farms) Gross output per ha o lowlad sheep flocks icreased by 84 (+7%) from 2014 to The icrease i gross output was mostly due to a icrease i the kilograms of lamb sold which was achieved by icreasig sale weight ad reducig the amout of replacemets retaied Variable ad fixed costs per ha decreased by <1% or 5 ad 4 per ha respectively. The mai variable costs cotiue to be 1) cocetrates (32%), 2) fertiliser (27%), 3) veteriary (17%) ad 4) cotractor costs (11%). Together these costs accouted for 87% of total variable costs. Gross margi per ha excludig premia icreased by 14%, from 594 to 683 due to the higher output ad lower variable costs. Net profit excludig premia per ha icreased from 2014 to 2015 by 93, from 116 to 209. However, total premia reduced by 52 per ha from 2014 to

32 Compariso (Lowlad Sheep Farms) Table 7- Profit Moitor per hectare aalysis (41 Farms) Compariso of costs ad icome o the same sheep farms over two years Physical Chage Stockig rate LU/ha Ewes to ram Lambs reared per ewe joied to ram Lambs reared per hectare Ewe lambs retaied Fiacial ( / ha.) Average lamb price Gross Output 1,167 1, Variable Costs Gross Margi Fixed Costs Net Profit Excl. Premia Total Premia* Premia Retaied* 127% 153% 27% (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 27

33 Compariso (Lowlad Sheep Farms) Variable Costs per Ewe - Lowlad Farms 2014 vs Cocetrates Fertiliser Veteriary Cotractor Other

34 e-profit Moitor Aalysis Drystock Farms 2015 Appedix Tables These tables iclude a breakdow of the differet beef ad sheep eterprises whe they are raked o their gross margis per ha excludig premia. More details are also give o some of the variable ad fixed costs for beef ad sheep farms. 29

35 Appedix Table 1 Sucklig to Beef farms 2015 per hectare aalysis (159 Farms) Top 10% Top 1/3 Average Bottom 1/3 Bottom 10% Physical Farm Size (cattle ha) Stockig Rate LU/ha Liveweight Produced kg/lu Liveweight Produced kg/ha , Fiacial /ha Gross Output Value 2,662 2,157 1, Variable Costs 1, Gross Margi 1,599 1, Fixed Costs Net Profit excl. Premia Total Premia * Total Premia Retaied * 264% 215% 150% 80% 43% (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 30

36 Appedix Table 2 Sucklig to Wealig / Store Farms 2015 per hectare aalysis (237 Farms) Top 10% Top 1/3 Average Bottom 1/3 Bottom 10% Physical Farm Size (cattle ha) Stockig Rate LU/ha Liveweight Produced kg/lu Liveweight Produced kg/ha Fiacial /ha Gross Output Value ,827 1,519 1, Variable Costs Gross Margi 1, Fixed Costs Net Profit excl. Premia Total Premia * Total Premia Retaied * 189% 143% 97% 47% -5% (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 31

37 Appedix Table 3 No-Breedig Farms 2015 per hectare aalysis (157 Farms) Top 10% Top 1/3 Average Bottom 1/3 Bottom 10% Physical Farm Size (cattle ha) Stockig Rate LU/ ha Liveweight Produced kg/lu Liveweight Produced kg/ha Fiacial /ha Gross Output Value ,390 1, ,588 2,668 1, Variable Costs 1,614 1, Gross Margi 1,974 1, Fixed Costs Net Profit excl. 1, Premia Total Premia * Total Premia Retaied * 296% 221% 152% 46% -66% (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 32

38 Appedix Table 4 Lowlad Sheep per hectare aalysis (113 farms) Top 10% Top 1/3 Average Bottom 1/3 Bottom 10% Physical Performace Flock Size Stockig Rate(LU/ha) Ewes/ha Lambs reared per ewe to ram Lambs reared per hectare Fiacial Performace /ha Gross Output 1,693 1,605 1, Variable Costs Gross Margi 1, Fixed Costs Net profit excl premia All Premia* % Premia* retaied 195% 184% 133% 64% 62% Average lamb price / head (* Icludes Basic Paymet, AEOS, ANC, GLAS, BDGP, & STAP paymets) 33

39 Appedix Table 5 Major Costs per hectare o Sucklig Farms 2015 (396 Farms) Top 1/3 Average Bottom 1/3 Total Variable Costs Of which: Feed Fertiliser & Lime Cotractor Vet/Meds/AI Other Total Fixed Costs Of which: Lad Retal Machiery Ruig Hired Labour Depreciatio Iterest Other

40 Appedix Table 6 Major Costs per hectare o No Breedig Farms 2015 (157 Farms) Top 1/3 Average Bottom 1/3 Total Variable Costs 1, Of which: Feed Fertiliser & Lime Cotractor Vet/Meds/AI Other Total Fixed Costs Of which: Lad Retal Machiery Ruig Hired Labour Depreciatio Iterest Other

41 Appedix Table 7 Major costs per ewe to ram aalysis 2015 (113 farms) Top 1/3 Average Bottom 1/3 Total Variable Costs Of which Purchased Feed Fertiliser Veteriary Cotractor Other Total Fixed Costs Of which Machiery Ruig Labour Lad Lease Depreciatio Buildigs Depreciatio Machiery Repairs & Maiteace Iterest Other

42 Teagasc e-profit Moitor Aalysis Drystock Farms 2015 Cotact Details Aimal & Grasslad Research ad Iovatio Cetre Teagasc, Grage, Dusay, Co. Meath, Irelad. Tel: Fax: (0) (0) Desig & Prit by Moder Priters:

43 Isert Your Farm Eterprise Figures Here Ackowledgemets Teagasc sicerely thaks all those ivolved i the collectio ad iputtig of all the data used i compilig this report o the Drystock Profit Moitor farms for A special word of thaks to all the drystock farmers for their help ad co-operatio i makig available both the fiacial ad physical iformatio eeded. Thaks also to the advisors ad techicias who collected much of the data ad to Kevi Coolly, Fiacial Maagemet Specialist, for his overall co-ordiatio of the eprofit Moitor system. Thaks to Aida Murray for co-ordiatig the publicatio of this booklet ad for writig the cattle sectios. Thaks to Michael Gottstei for writig the sheep sectios. Thaks to Therese Dempsey ad Loreto Ferguso for their help i desigig ad editig the booklet. Beef Profit Moitor Figures Physical Farm Size (cattle ha)... Stockig Rate LU/ha... Liveweight Produced kg/lu. Liveweight Produced kg/ha.. Fiacial /ha Gross Output Value... Variable Costs... Gross Margi... Fixed Costs... Net Profit excl. Premia. Total Premia... Total Premia Retaied (%)... Sheep Profit Moitor Figures Physical Flock Size... Stockig Rate(LU/ha)... Ewes/ha... Lambs reared per ewe to ram Lambs reared per hectare... Fiacial per Ewe / ha Gross Output Value... Variable Costs... Gross margi... Fixed Costs... Net Profit excl. Premia. Total Premia... Total Premia Retaied (%)...