Little change for top Scottish livestock

Survey: Best-performing producers control costs

Scottish livestock enterprises are still stubbornly typified by a top third of producers who consistently outperform the rest.

Stuart Ashworth, head of information services at Quality Meat Scotland (QMS) refused yesterday to describe the findings as depressing and felt there was some movement towards better performance across the board.

He made the comments as he launched the QMS 2015 Enterprise Costings document ahead of its general release tomorrow at Agriscot. It is important to realise at the outset that this survey reflects the 2014 calf and lamb crops and the financial conditions in the calendar year.

“We noticed the top third edging away in 2013 but in 2014 the average performance improved a bit which is pleasing,” he said. He did admit however that generally benign weather in 2014 would have helped, and added: “Top producers continue to be characterised by high physical or technical performance, strong control over costs, and maximising returns from the market place.”

Using the suckler herds surveyed as an example,

“High physical performance, strong cost control, returns are maximised”

those in the top third of gross margin per animal achieved higher output through higher calf rearing percentages, combined with selling heavier calves resulting in higher yield per cow in the herd.

They also typically received six to 10 pence per kilogram liveweight more for the calves they sold. Those in the top third also had lower total variable costs than average while achieving higher output.

Turning to the sheep sector Mr Ashworth noted top-third producers achieving higher outputs by typically rearing between seven and 15 more lambs per 100 ewes than the average.

“Although they did not necessarily rear lambs to the heaviest weights, the larger lamb crop typically resulted in top-third flocks selling five kilogram liveweight more lamb per ewe. They also typically sold the highest proportion of lambs for immediate slaughter. The net effect of this was that income per ewe from lamb sales was £13 to £14 per ewe more than the average,” said Mr Ashworth.

The wide gap between the best and the poorest producers has now been repeatedly documented in these QMS surveys but Mr Ashworth refused to be overly pessimistic.

“We are seeing more people coming forward to meetings and showing more interest in the challenge of better resource efficiency,” he said.

One of the other distinguishing factors for top producers was a better understanding and compliance with abattoir requirements.

Mr Ashworth acknowledged that this was not always easy but said those who were most successful kept up a regular dialogue with buyers.

There is however no concealing the effects of market volatility on top of historically low base prices. A worryingly high proportion of cattle and sheep producers relied heavily on support payments in 2014.

“Only 29% of store cattle finishers achieved a positive net margin, downfrom 72% the previous year,” Mr Ashworth said.

Amongst hill ewe flocks the proportion making a positive net margin lifted from 10% in 2013 to 15% in 2014. Upland flocks fared better with 68% in positive territory.

Hard copies of the survey will be available at the QMS stand at Agriscot, by post or online.

QUALITY: The top producers typically rear up to 15 more lambs per 100 ewes than the average, and more for immediate slaughter