€400/ha profit gap for suckler herds

THE difference in net profit between the top and poorest-performing suckler beef herds is €400 per hectare, figures from the Teagasc National Farm Survey reveal.

Teagasc beef specialist Pearse Kelly told the Animal and Plant Health Association conference yesterday that the bottom third of suckler producers are making a loss before premia of €200/ha, compared to a profit of €200/ha for the top third.

He said a typical top-performing suckler farmer with 100 hectares earns €60,000 per year.

However, the cost of land rental and additional labour impeded many top producing beef farmers increasing scale to a level that would ensure viable incomes.

He said Teagasc figures show the top producing farms spend less per animal on medicines than the poorest performing group. This is because these farmers incorporate disease prevention as a strategic element in the management of the farm.

Mr Kelly said: “For example, the cost of a respiratory disease outbreak could average more than €100/calf as a result of deaths, reduced performance, veterinary costs and labour. A strategic vaccination programme to prevent respiratory diseases would cost less than one-fifth of this.”

He said a partnership involving all sectors of the industry would enhance the control of a range of animal diseases, leading to substantial benefits for farmers and food exports.