This year’s e-Profit Monitor Analysis is made up of 886 beef farms and 178 sheep farms from across the country. It also looks at the eProfit Monitors from 496 beef and 72 sheep farms that completed data for both 2012 and 2013 and compares the differences in output, costs and profits on those farms from one year to the next.

The analysis found that on beef farms variable costs increased €125 per ha in 2013 in comparison with 2012. The three main areas where variable costs increased were concentrates (+ €42 per ha), fertiliser (+ €42 per ha) and contractor costs (+ €18 per ha).

While on sheep farm variable costs per ha increased by €135 (25%) in 2013.

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The rise has been attributed to the shortage of fodder in the Spring of 2013 due to adverse weather and poor grass growth.

Key findings for 2013 include:

Suckling to beef farms

  • The top 1/3 of farms generated a gross output of €1,822 per ha compared to €1,376 per ha on the average farms, a difference of 32%.

  • The biggest variable cost on suckler to beef farms in 2013 was purchased forage and concentrate accounting for 41% or €342 per ha of total variable costs.

  • The average suckler to beef farm in 2013 generated a net profit of €15 per ha compared to €352 per ha on the top 1/3 of farms.

    • Suckling to Weanling / Store Farms

  • The low gross margin on the average farms was not sufficient to cover all the fixed costs of €444 per ha. This had the effect of generating a net loss of €152 per ha before premia.

  • Fixed costs on the top farms were €498 per ha leaving a net profit before premia of €129 per ha.

  • The top 1/3 of producers in this system carried 24% more stock at 1.80 LU per ha versus 1.45 LU per ha for the average. They also produced 37 kg per LU more than the average (318 kg v 281 kg).

    • Non-Breeding Beef Farms 2013

  • The top 1/3 of farms achieved a price of €2.54 per kg liveweight produced versus €2.35 per kg achieved on the average farms.

  • The average farm made a net loss of €3 per ha whereas the significantly higher gross output on the top 1/3 of farms resulted in a net profit of €333 per ha.

  • Average feed costs (purchased forage and concentrates) accounted for 56% or €535 per ha of total variable costs in 2013.

    • Lowland Sheep Farms 2013

  • The top 1/3 of farms had a higher stocking rate (an extra 1.4 ewes per ha) and a higher weaning rate (an extra 0.19 lamb) than the average.

  • The combined effect of the higher stocking rate and higher weaning rate resulted in an extra 3.5 lambs reared per ha. This is was the main reason why output per ha was €386 higher.

  • The gross output for the top 1/3 of farms was €1,341 per ha which was 40% higher than the average.

    • Hill Sheep Farms 2013

  • The average hill sheep flock size for those that completed a profit monitor for 2013 was 144.

  • Average lambs reared per ewe joined to ram was 0.97.

  • Average lamb sales price was €77.