The top one-third of suckler-to-beef farms made three times as much money last year as the average farm, according to Teagasc e-Profit Monitor data.

The top third of sucker-to-beef farms had a net profit of €563/ha in 2016, well ahead of the €185/ha made by the average farm in this sector. The top farms’ profit before premia was down €68/ha on 2015.

The best farms produced 873kg/ha compared to the average 645kg/ha, and recorded a gross output of €2,035/ha compared to €1,441/ha.

While the top farms had higher variable costs, this was diluted by the fact that they produced more beef/ha.

Suckler farms selling weanlings or stores had a lower output and profits than those selling finished cattle.

The best performers in this sector turned a profit of €258/ha, but the average farm lost €36/ha. This is before premia.

The top one-third of farms were stocked higher and produced heavier cattle.

On farms where cattle were bought in for finishing, the best performers made four times as much profit as the average farm.

The top third made a net profit of €522/ha before premia, while lower output meant the net profit on the average farm was €128/ha.

Again, higher stocking rates and heavier cattle were the driver of high profits. The best farms achieved €2.20/kg liveweight for their cattle – €2.07/kg on the average farm.

Sheep

The top one-third of lowland sheep farms made an extra €90/ha profit than the average farm, Teagasc figures show.

Net profit, excluding premia, was €355/ha on the top one-third of lowland sheep farms compared with the average €265/ha. The cost of producing a lamb was €75 on the top farms, some €11 cheaper than the average farm figure of €86/lamb.

In the hill sheep sector, the top one-third of farms made a profit of €10/ewe, while the average upland sheep farm lost €21 per ewe, before direct payments were taken into account.

The top hill farms reared 1.14 lambs/ewe put to the ram and got €77/hd for their lambs. The average hill farm reared 0.97 lambs/ewe and sold the lambs for €65/head.

Read more

Weanling series: getting weaning right on suckler farms