Stocktake Report 2015

AHDB Beef and Lamb (previously Eblex) has released its latest benchmarking figures for English beef and sheep enterprises.   The figures in the 2015 Stocktake Report relate to the year ending 31^st March 2015.  Despite falling input costs, in particular for feed, fuel, and fertiliser, average performers across the enterprises failed to be profitable. The table below should the net margins for each enterprise and the difference between the average producer and a top third producer where available.

The level of fixed costs between the top third of producers and the average show a marked difference, highlighting the importance of looking at total costs rather than just the gross margin.  Another key area of difference is the stock purchase price which is almost 20% lower for the top third of producers.  It should be noted that the results do not include income from subsidies (Single Payment/Agri Environment) or diversification income.  Many of these types of farms will be reliant on such income to produce an overall farm profit.

The report, which is only in its third year, aims to offer benchmarking figures and physical information for producers to compare their enterprises against similar ones.  For the first time, international comparisons have also been included in the report.  These were compared on the basis of US Dollars and therefore some exchange rate impacts are felt.  For suckler herds just the US had returns greater than costs. The UK and Germany were the only countries to have returns lower than their cash costs (i.e. those costs not including imputed rent, unpaid labour, depreciation and finance).  For finishing units the USA and China had returns higher than costs whilst for sheep breeding enterprises, New Zealand, Australia and China were profitable.

The full report can be downloaded from http://beefandlamb.ahdb.org.uk/returns/stocktake/