Teagasc advice: Cut back the costs that eat into sales
Controlling farm costs is a key part of farm management.
Substantial rises in farm gate prices for beef and lamb in recent years have been eroded by a greater increase in farm input and services prices, for fertiliser, concentrates, plastic, veterinary products, electricity, etc.
This has increased the cost squeeze on farmers.
The sharp rise in costs has highlighted the need for farmers to do their sums, look at options available, and curb expenses.
Curbing expenses
Curbing costs by cutting back on vital inputs such as fertiliser, lime, routine parasite control products is false economy, going nowhere.
The key is to improve farm efficiency and maintain farm output, while pinpointing where savings can be made.
If breeding sucklers, pay particular attention to documents such as Herd Plus, ICBF’s Eurostar ratings, follow Teagasc advice carefully, etc. Every part of the farm must be examined, to eliminate wastage and highlight where cost can be curbed.
With this in mind, here are some suggestions from Teagasc advisers.
* Maximise the use of grass as a feed. It is much cheaper than concentrates or silage. Use adequate levels of lime and NPK to grow plenty grass, practice rotational grazing for efficient usage of grass.
* Fertiliser can account for up to 20% of total variable input cost on drystock farms. Soil samples will pinpoint fields surplus or deficient in P, K, and lime. Regular lime application helps to maximise availability of N, P and K for grass growth. Follow a fertiliser plan prepared by a Teagasc adviser or agricultural consultant.
* Maximise use of slurry and FYM in the spring, when the greatest uptake of NPK by plants occurs. Use organic fertiliser to replace costly chemical fertiliser.
* Making highly digestible, well preserved silage reduces concentrate requirements and costs in the winter.
Although costly, reseeding will pay for itself in two years by providing more grass and fodder, better utilisation of nitrogen. Including a high level of clover in the seed mix e will help control N costs.
* Completing a farm veterinary plan with the aid of your vet will help control parasites, diseases, mineral imbalances etc, to increase output while curbing costs.
* Calibrate fertiliser spreaders, sprayers; recycle silage pit covers and plastic bags, switch off power to electric fences in winter, knock off water metres on out-farms etc.
* Farmers living close to each other can come together for scanning, freeze branding, shearing. Most scanner operators will reduce the price per head for large numbers of stock in the same locality.
* Farmers in the same locality can collectively buy fertiliser, or concentrates in half ton bags.
* Contract rearing livestock has proved an attractive option on many suckler farms.
* Shop around, especially for veterinary products. Purchase quality farm inputs at the keenest price.
* Purchasing concentrates loose may be laborious, but cheaper (pay on the day).
* If comfortable on the computer, on-line may be cheaper than phoning for ordering products and cattle/sheep tags, online registering of calves with DAFM, etc.
* Manage cash flow better to reduce reliance on expensive merchant credit.
