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A big lift in costs, not matched by a similar increase in lamb price, resulted in lower gross margins on Northern Ireland (NI) Sheep Programme farms in 2022.
Presenting the results at Greenmount on Tuesday, in the first of two events to mark the conclusion of the programme, CAFRE adviser Senan White said that across four upland farms, gross margins per ewe fell from £54 (€61) in 2021 to £42 (€48) in 2022.
Over the same period, five lowland farms saw gross margin per ewe fall from £103 (€117) to £100 (€114). Gross margin per hectare dropped from £871 (€990) to £751 (€853).
“Given that meal cost was up 33% and fertiliser prices were two to three times higher, it is a credit to the farmers that they managed to keep margins where they are,” suggested White.
‘Little steps’
Despite the cost squeeze in 2022, the margins per ewe on the lowland farms are still double what they were at the start of the programme in 2019, while upland margins have increased 60%.
That has been achieved by doing simple things well, including following an active animal health plan and growing more grass, said White.
Over the last three years, 1,200t of lime have been spread on farms to correct low soil pH, while farmers have also adopted EID technology, which allows them to select replacements from the best performing ewes.
“It is hundreds of little steps to improve what I have – it takes time,” added programme farmer Mark Davidson from Dungannon.
Omagh event
A second event for NI Sheep Programme farmers takes place at the Mellon Country Inn, Omagh, starting at 7.30pm tonight (Thursday).
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