Early lamb production has traditionally been a high-cost enterprise where the potential to make a margin has been heavily influenced by the strength of the market at selling time.

This market has also been very volatile with many flock owners over the last five years seeing their margin practically disappear in less than a week following a sharp fall in prices.

The rising cost of concentrates has added further pressure to early lamb production systems. This is especially the case in a year like we are currently experiencing with a lack of grass growth leading to higher than normal concentrate feeding to both the ewe and lamb.

Derek Deacon,

Carlow

Land type on Derek Deacon’s farm in Carlow can be described as having dry soils that, in a normal year, would generate sufficient grass growth to sustain early grazing of ewes and lambs. Creep feeding of lambs has always been part of the production system. However, Derek explains that the weather-related difficulties of the last two years in particular, and a resultant lack of grass growth, has greatly increased the reliance on concentrate usage to bring lambs to slaughter weight.

He comments that early lamb producers are in a vulnerable position as if they don’t feed concentrates, lamb performance will suffer greatly. There is also no guarantee that producers will be rewarded for making this investment and, worse still, any price reduction realised could see early lamb producers incurring significant losses. He says that a steady price is vital for the next six weeks to allow farmers cover costs.

Derek says that if processors expect farmers to undertake the risks associated with producing early lamb and want a supply of lamb in April and May, they must be prepared to pay farmers a fair price. This price must take into account the rising costs of production. Derek’s lambs are currently consuming close to ad lib levels of meals. He explains that, even with this level of feeding, lower temperatures have significantly impacted on lamb performance. Grass growth and a rise in temperatures will hopefully increase performance but with the first draft of lambs only being selected this week, lambs have already accumulated huge costs. Lambs will be drafted to deliver a carcase as close to 20kg as possible to maximise the sale value.

Derek adds that early spring lamb is a premium product but at present it is not attracting a premium price. Processors are paying over €5.50/kg for hoggets up to 23/24kg carcase weight and yet the price being quoted for spring lamb is at best €6.50/kg for a 20kg carcase. “The cost of producing a spring lamb needs to deliver at least a €10 price premium and the answer is not cheaper hoggets”.

Martin Fleming,

Galway

Martin Fleming farms in Mountbellew, county Galway. He has one of a small number of early lambing flocks remaining in the area. Lambing early has generally suited his farming system as it spreads workload and frees up grass later in the summer for his suckler herd. However, he says that increasing concentrate costs and a greater reliance on these to finish lambs has put serious question marks on the economics of early lambing.

He says that weather conditions over the last three years have seen concentrate usage increase to both ewes and lambs.

Poor grass growth last autumn led to ewes being housed earlier, while heavy rainfall during lambing (average lambing date 1 February) meant ewes and lambs were retained indoors for an average of four weeks post lambing. This improved grass utilisation when animals did get to grass but it significantly increased production costs. Martin calculates that ewes have eaten about 75kg of meals from the period running up to lambing to seven to eight weeks post lambing with over 60 bales of straw required to house the 110-ewe flock for longer.

A lack of grass growth has also significantly affected lamb production costs. Despite sufficient grazing ground being closed and receiving slurry last October, poor grass growth has seen grass supplies diminish rapidly. In a normal year, good quality grass and minimum supplementation allowed drafting of single lambs to start from 12 to 14 weeks of age. But a lower availability of quality grass and lower than normal temperatures has seen lamb performance drop well back, with Martin commenting that it has been very hard to maintain flesh on lambs. Up to two weeks ago, lambs were receiving restricted feeding levels of 50kg between 170 lambs (approx 300 grams per day). Creep feeding has been stepped up to 100kg in a bid to maintain performance and put flesh on lambs.

He said that in the absence of any recovery in grass growth, feeding levels would need to be stepped up even further but points out that at current lamb prices the extra feeding may fail to cover the additional costs.

After three very difficult years, he will be forced to reconsider his lambing date in the absence of any guaranteed returns from the system.