So far this year store prices have been largely in line with the five-year average, according to AHDB, at £57/head.
Meanwhile, lambs finished in the back end have averaged around £70-£77/head for the last five years.
This is leaving around £20/head to cover costs and profits.
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The difference between buying and selling lambs leaves little profit, according to AHDB’s stocktake reports.
It suggests that the cash-only costs for finishing a lamb amount to £15/head, plus an additional £5/head for non-cash costs such as depreciation for mid-performing enterprises.
The top performers, however, are able to squeeze a profit from the £20/head margin. The key differences between the middle and top performers are:
Unpaid labour is half that of the mid-performing enterprises.
Lower feed and forage costs.
Lower purchase prices and higher selling prices.
ADHB also notes that output alone is not a good measure of productivity; what matters is the ability to turn inputs into outputs.
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So far this year store prices have been largely in line with the five-year average, according to AHDB, at £57/head.
Meanwhile, lambs finished in the back end have averaged around £70-£77/head for the last five years.
This is leaving around £20/head to cover costs and profits.
The difference between buying and selling lambs leaves little profit, according to AHDB’s stocktake reports.
It suggests that the cash-only costs for finishing a lamb amount to £15/head, plus an additional £5/head for non-cash costs such as depreciation for mid-performing enterprises.
The top performers, however, are able to squeeze a profit from the £20/head margin. The key differences between the middle and top performers are:
Unpaid labour is half that of the mid-performing enterprises.
Lower feed and forage costs.
Lower purchase prices and higher selling prices.
ADHB also notes that output alone is not a good measure of productivity; what matters is the ability to turn inputs into outputs.
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