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

Teagasc Spring Seminar Series 26th March, 2019

Pearse Kelly Head of Teagasc Drystock Knowledge Transfer Department

Profitable Beef Farming in Ireland: Does it really exist?

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Teagasc 2017 National Farm Survey Results

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Source: Teagasc National Farm Survey Results 2017

Teagasc 2017 National Farm Survey Results

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Source: Teagasc National Farm Survey Results 2017

Teagasc eProfit Monitors

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Teagasc eProfit Monitors

• Financial analysis tool used by Teagasc clients
• Examines both physical & financial performance
• f 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’

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2017 Teagasc eProfit Monitors

• Beef Farmers Analysis -

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Beef System Number Farmers Suckler to Weanling 1,026 Suckler to Beef 620 Non- Breeding Beef Systems 513 TOTAL 2,159

2017 eProfit Monitor - Liveweight per Ha Data

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Liveweight (Kg) per Hectare Gross Margin (€) per Hectare  Strong relationship between amount of beef produced per ha and margin made per ha.  Higher beef output (kg) farms on average have higher profitability per ha.

Source: Teagasc eProfit Monitor Analysis

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2017 eProfit Monitor - Stocking Rate per Ha Data

Stocking Rate – LU per Hectare Liveweight (Kg) per Hectare  Strong relationship between stocking rate (LU per ha.) and the amount of beef produced per ha.  Farms with higher stocking rates on average produce higher amounts of beef liveweight per ha.

Source: Teagasc eProfit Monitor Analysis

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Liveweight (Kg) per Livestock Unit (LU) Liveweight (Kg) per Hectare

2017 eProfit Monitor – Liveweight per LU Data

 Strong relationship between amount of beef 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.

Source: Teagasc eProfit Monitor Analysis

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.

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Kg Beef – Per LU & Per Ha –eProfit Monitor

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Kg Beef – Per LU & Per Ha - Herdplus

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Improving Efficiency on Suckler Farms

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Meeting KPI’s versus National Average

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What is this worth on a 40 ha Farm?

40 ha. Spring calving suckler farm selling weanlings in the Autumn

= Increase of €18,180 per year

1.5 Cows per hectare (approx. 140 kg Organic Nitrogen / ha.)

60 Suckler Cows X €303 per Cow

Suckling to Beef Farms 2017

(eProfit Monitors 620 Farms)

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Top 10% Top 1/3 Average Bottom 1/3 Bottom 10% Stocking Rate (LU/ha) 2.6 2.3 1.9 1.6 1.5 Kg Beef / ha 1,038 855 613 405 366 Net Profit (excl. Premia)

€816 €493 €145

• €163 -€460

Total Premia €539 €489 €486 €477 €454

Source: Teagasc eProfit Monitor Analysis

Suckling to Weanling/Store Farms 2017

(eProfit Monitors 1,026 Farms)

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Top 10% Top 1/3 Average Bottom 1/3 Bottom 10% Stocking Rate (LU/ha) 2.1 1.9 1.5 1.2 1.2 Kg Beef / ha 766 594 437 309 300 Net Profit (excl. Premia)

€653 €318 €11

• €293 -€530

Total Premia €503 €506 €500 €503 €557

Source: Teagasc eProfit Monitor Analysis

Non-Breeding Beef Farms 2017

(eProfit Monitors 513 Farms)

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Top 10% Top 1/3 Average Bottom 1/3 Bottom 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 Net Profit (excl. Premia)

€1,154 €714 €236

• €229 -€532

Total Premia €470 €452 €460 €464 €479

Source: Teagasc eProfit Monitor Analysis

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 Net Profit / Ha. €61 €493 €83 €714 Premia / Ha. €645 €489 €826 €452

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Source: Teagasc eProfit Monitor Analysis

Clara IFA Meeting December 2018 21

Teagasc Green Acres Programme

Profit Monitor Analysis: 2014 to 2017

Aver. 2014

• Aver. 2015 Aver. 2016 Aver. 2017
• 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)

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136 308 475

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10 Teagasc Dairy Calf to Beef Demonstration Farms

Profitable Beef Farming in Ireland: Does it really exist?

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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!

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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

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