Fixed cost can erode margins on struggling cattle farms
Net profit margins on 80 adjusted acres of the best soil type average only 147 per week from mixed beef production, according to Teagasc Specialist, Pearse Kelly. For single suckling on a similar size farm, earnings average 106 per week.
One of the things which cattle farmers have to watch out for, according to Mr Kelly, is fixed cost, which can erode margins, if there is unnecessary investment in infrastructure and machinery.
