Profit margin of €458 per hectare impresses visitors to organic beef farm

Beef farmers listened with disbelief at a recent national organic demonstration on a farm where beef cattle are sold for €4.75/kg.
Profit margin of €458 per hectare impresses visitors to organic beef farm

“Conventional” farmers were also impressed by Teagasc profit monitor figures for 2013 on the suckler beef farm of Oliver Dixon, at Ahena, Claremorris, Co Mayo.

Local Teagasc adviser Geraldine Hynes said key profit monitor figures showed Oliver’s output per hectare at 323kg of beef.

His gross output per hectare, excluding all direct payments, was worth €795 in 2013. His variable costs per hectare were €337, leaving a gross margin of €458.

Oliver moved to organic in 2010, primarily because of high costs in conventional farming. He attained full organic status in May 2012.

The main enterprise is organic suckler cow to beef production. He told those on the farm walk, “You know your farm better than anyone else, you need to assess what you can change to make life easier for yourself”.

Teagasc Organic Specialist Dan Clavin explained the steps in successful organic conversion. He said it requires a lot of planning, choosing an organic certification body, preparing a conversion plan, and preparing the land by sowing clover and building soil nutrients, and changed thinking on use of chemical fertilisers.

Elaine Leavy of Teagasc said that even without converting to organic, the benefits of red clover are clear.

It is used in an organic system for fertility building and for silage. “It has the great ability of being cut a number of times per year“, she said. It fixes a large amount of nitrogen, and is 15-20% protein.

Over three cuts of red clover silage, an average of 25 bales per acre can be expected.

For finishing his beef animals over the winter, Oliver Dixon uses red clover silage, fed with oats and peas which he also grows himself.

Local Teagasc advisor Austin Callaghan said red and white clover will supply the soil with enough nitrogen in an organic system, but levels of P and K need to be kept up, typically by using slurry.

Geraldine Hynes emphasised the importance of output of kgs per hectare on beef farmers, and covering costs.

She set a 365 days calving interval target, for both organic or conventional farms. “Each day the calving interval goes beyond 365 days it costs €7.50 per cow.” Kevin McKeever from the Department of Agriculture said payments per hectare are increased for organics in the Rural Development Plan, and the organic farming scheme will re-open early in 2015.

The national organic demonstration farm walks, organised by Teagasc, the Department of Agriculture and organic organisations, continue in September (see events listing, page 2).

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