26 th March, 2019 Pearse Kelly Head of Teagasc Drystock Knowledge - PowerPoint PPT Presentation

Teagasc Spring Seminar Series 26 th March, 2019 Pearse Kelly Head of Teagasc Drystock Knowledge Transfer Department

Profitable Beef Farming in Ireland: Does it really exist? 2

Teagasc 2017 National Farm Survey Results Source: Teagasc National Farm Survey Results 2017 3

Teagasc 2017 National Farm Survey Results Source: Teagasc National Farm Survey Results 2017 4

Teagasc eProfit Monitors 5

Teagasc eProfit Monitors  Financial analysis tool used by Teagasc clients  Examines both physical & financial performance of farm enterprises (e.g. beef, sheep tillage).  Knowledge Transfer group members complete an eProfit Monitor annually  When compared to National Farm Survey the average profitability of those who complete a beef eProfit Monitor are in the Top 25%  Those who complete an eProfit Monitor are in general more ‘Profit Driven’ 6

2017 Teagasc eProfit Monitors - Beef Farmers Analysis - Beef System Number Farmers Suckler to Weanling 1,026 Suckler to Beef 620 Non- Breeding Beef Systems 513 TOTAL 2,159 7

2017 eProfit Monitor - Liveweight per Ha Data  Strong relationship between amount of beef produced per ha and margin made Gross Margin ( € ) per Hectare per ha.  Higher beef output (kg) farms on average have higher profitability per ha. Liveweight (Kg) per Hectare Source: Teagasc eProfit Monitor Analysis 8

2017 eProfit Monitor - Stocking Rate per Ha Data  Strong relationship between stocking rate (LU per Liveweight (Kg) per Hectare ha.) and the amount of beef produced per ha.  Farms with higher stocking rates on average produce higher amounts of beef liveweight per ha. Stocking Rate – LU per Hectare Source: Teagasc eProfit Monitor Analysis 9

2017 eProfit Monitor – Liveweight per LU Data  Strong relationship between amount of beef Liveweight (Kg) per Hectare liveweight (Kg) produced per LU and the level (kg) produced per ha.  All beef farms should focus on increasing beef (Kg) produced per LU before increasing stocking rates. Liveweight (Kg) per Livestock Unit (LU) Source: Teagasc eProfit Monitor Analysis 10

What influences Output (Kg) per LU?  High number of calves per cow per year  Low levels of mortality  High daily gains at grass  High daily gains when indoors on silage  High growth rates due to genetics from dam & sire  High growth rates due to health status – low levels of parasites, no respiratory diseases, good mineral status etc. 11

Kg Beef – Per LU & Per Ha – eProfit Monitor 12

Kg Beef – Per LU & Per Ha - Herdplus 13

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Improving Efficiency on Suckler Farms 15

Meeting KPI’s versus National Average What is this worth on a 40 ha Farm? 40 ha. Spring calving suckler farm selling weanlings in the Autumn 1.5 Cows per hectare (approx. 140 kg Organic Nitrogen / ha.) 60 Suckler Cows X € 303 per Cow = Increase of € 18,180 per year 16

Suckling to Beef Farms 2017 (eProfit Monitors 620 Farms) Top Top Average Bottom Bottom 10% 1/3 1/3 10% Stocking Rate (LU/ha) 2.6 2.3 1.9 1.6 1.5 Kg Beef / ha 1,038 855 613 405 366 € 816 € 493 € 145 - € 163 - € 460 Net Profit (excl. Premia) € 539 € 489 € 486 € 477 € 454 Total Premia Source: Teagasc eProfit Monitor Analysis 17

Suckling to Weanling/Store Farms 2017 (eProfit Monitors 1,026 Farms) Top Top Average Bottom Bottom 10% 1/3 1/3 10% Stocking Rate (LU/ha) 2.1 1.9 1.5 1.2 1.2 Kg Beef / ha 766 594 437 309 300 € 653 € 318 € 11 - € 293 - € 530 Net Profit (excl. Premia) € 503 € 506 € 500 € 503 € 557 Total Premia Source: Teagasc eProfit Monitor Analysis 18

Non-Breeding Beef Farms 2017 (eProfit Monitors 513 Farms) Top Top Average Bottom Bottom 10% 1/3 1/3 10% Stocking Rate (LU/ha) 2.5 2.2 1.8 1.4 1.4 Kg Beef / ha 1,481 1,097 735 453 441 € 1,154 € 714 € 236 - € 229 - € 532 Net Profit (excl. Premia) € 470 € 452 € 460 € 464 € 479 Total Premia Source: Teagasc eProfit Monitor Analysis 19

Profitability 2008 Versus 2017 “Top 1/3 Farms Comparison” Suckling to Beef Farms Non Breeding Farms 2008 2017 2008 2017 Total No. Farms 252 620 53 513 Kg Beef Lw / Ha 637 Kg 855 Kg 706 Kg 1,097 Kg € 61 € 493 € 83 € 714 Net Profit / Ha. € 645 € 489 € 826 € 452 Premia / Ha. Source: Teagasc eProfit Monitor Analysis 20

21 Clara IFA Meeting December 2018

Teagasc Green Acres Programme Profit Monitor Analysis: 2014 to 2017 Aver. Aver. 2015 Aver. 2016 Aver. 2017 2014 S. Rate (LU/Ha) 1.83 2.04 2.27 2.5 Output (Kgs/Ha) 759 977 1,156 1,296 Gross Output ( € /Ha) 1,459 1,883 2,101 2,424 Output per LU (Kgs/Ha) 414 478 511 517 Net Margin ( € /Ha) -40 136 308 475 10 Teagasc Dairy Calf to Beef Demonstration Farms 22

Profitable Beef Farming in Ireland: Does it really exist? 23

YES but ……….  A high output of beef liveweight produced per hectare is essential  Maximising beef liveweight produced per LU farmed is the first step  Improved grassland management, breeding and health all increase Kg beef produced per LU  Optimise stocking rate based on land type, housing on the farm and other work load commitments  Have a three year plan and work towards meeting its targets! 24

Teagasc Support for Beef Farmers  Over 300 Knowledge Transfer discussion groups with 5,000 beef farmers as members  Over 100 Business & Technology Beef Advisors giving one to one advise to beef farmer clients  Teagasc-Irish Farmers Journal BETTER Farm Beef Challenge demonstrating best practice on suckler farms  Teagasc-Green Acres Programme demonstrating best practice on dairy calf to beef farms  Involved in the Newford Suckler Demo Farm in Athenry  Have research demo farms – Derrypatrick Suckler Herd & New Calf to Beef Demo Herd (both in Teagasc Grange)  World recognised beef research programme in Teagasc Grange and Teagasc Johnstown Castle 25