Top beef and lamb producers making a margin

Top beef and lamb producers making a margin
23rd Aug 2011


DESPITE rising costs, beef and sheep producers in the top third are showing positive margins reports the Farmers Guardian.

And initial analysis of the annual Eblex Business Pointers costs-of-production benchmarking data shows physical performance has also improved for most of the seven types of enterprise under the examined.


But greater on-farm efficiency is still needed to counter the margin-restrictive fixed and variable costs, says Eblex.
“We are still collating and analysing the data that informs the annual Business Pointers benchmarking report for beef and sheep producers but initial signs are more encouraging than they have been in recent years,” said Eblex senior analyst Mark Topliff.
“The higher cattle prices we saw in the latter part of the year to March 31 2011 are not immediately reflected in overall performance but they will continue to filter through so there is definitely cause for optimism. On the sheep side, net margins are clearly up for lowland flocks and less favoured areas when all costs are taken into account.
“Across all seven enterprise types, only one category – lowland sucklers – saw a worsened physical performance in the provisional figures, compared to the 2010 data.
“Again, it is rising costs that appear to have been the biggest single obstacle to better returns, yet the top third producers across all enterprises are showing positive margins.
“We need to look at what specific business practices they are employing and ensure that these are highlighted across the sector to help improve efficiency and, ultimately, the bottom line.
“The climate is still not easy but the potential is there for improved performance for most enterprises.”
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