walesfarmer.co.uk IN THIS ISSUE


Wonderful Winter Fair


Farming news and views in Wales


January 2014


£1.50 TOUGH TIMES: Only 59% of suckler calf enterprises


covered their production costs in 2012/13. PICTURE: Debbie James.


Pages 18-19


Taking stock to add value


page 12


Partnerships can bear fruit


page 22


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Profits recover after tough year


WELSH beef and lamb producers are experienc- ing higher prices and lower costs after ayear which saw many failing to cover their production


costs. According to data analysed by Aberystwyth University,there wasamajor gapbetween the incomes of Wales’ top and bot- tom performing farms during 2012-13. The Wales Farm Income


by Debbie James


Booklet shows thatthe average gross margin per ewe on hill and upland farms during 2012-13 fell by 30%, areduction of £11 per ewe on hill farms and £18 per ewe on upland farms compared to the previous 12 months. The gross margin declined by


20% on lowland sheep farms becauseoutput had fallen by between six and 13%, while costs


increased by between 10 and 14 per cent. One hundred and twen- ty four sheep farms were analysed and only87% of the production costs were covered. John Richards,HybuCig


Cymru’sindustry and market information officer,said it wasno surprise to those within the industry thatmanyenterprises had faced economic uncertainty. “It wasaperiod when lamb


prices in particular were sub- dued, and input costs rose signif- icantly,”hesaid.


Only59% of suckler calf enterprises coveredtheir produc- tion costs.Suckler farms in the bottom thirdhad production costs thatweremorethan double those in the top third. Mr Richards said acontribut-


ing factor would be thatthose in the top thirdproduced 15 %–or 36kg –morebeef per cowthan those in the bottom third, high- lighting the importance of health and fertility on beef farms. “It can be seen thatonagross margin basis both sheep and


suckler calf enterprises made a positive return last year,although it wasasignificantlyreduced return when it comes to sheep. When fixedcosts areincluded, however,the picturechanges markedly,”hesaid. The largest costs were feed and


forage,followedbypower and machinery. But the good news is thatsince


March, lamb and beef market prices have been consistently abovelast year’slevels and many significant costs have levelled out.


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