While there has been a prevailing mood of negativity within the suckler sector in NI, the same cannot be said of our near neighbours in Scotland.

The view from Scottish beef expert Gavin Hill, of SAC Consulting, who was in Tyrone last week speaking at meetings organised by Zoetis and Ballygawley Vet Centre, was one that is largely positive about the future for sucklers.

In truth, he probably has to be positive because the beef industry is vital to the agri-food industry in Scotland, accounting for 26% of Scotland’s agriculture output in 2013.

Brand

The Scotch Beef brand has become an iconic image around the world, and one which can help other Scottish agri-food sectors acquire new market share.

However, the number of suckler cows in Scotland has been on the slide in recent years, dropping from 495,000 in 2006 to 446,000 in 2013. If the Scots are to retain the price premium they hold for Scotch beef, they must retain critical mass. “If we produce less and less, we lose markets – it worries us as an industry,” said Hill.

A 23-point action plan was unveiled in August by an industry expert group appointed by Rural Affairs Secretary Richard Lochhead. The aim is to revitalise the beef industry and facilitate long-term sustainable growth within Scotland.

The Scottish are also set to introduce a coupled subsidy from 2015, worth around €100 per beef bred calf (€160 per beef bred calf in the Highlands and Islands), as they try to maintain suckler cow numbers.

NI figures

The same issues that the Scots are trying to tackle head-on also exist in NI.

The suckler herd is down 5% in 2014 to 257,000 cows and all the indications point to even lower numbers next year. But the beef industry remains an important part of the local agri-food sector, with beef and sheepmeat processing in NI accounting for 28% of turnover within agri-food.

While we might not have the brand identity of Scotch beef, the suckler cow in NI is still the front-face for marketing and promotion activity around NI beef. It is crucial if we are to access top-paying markets.

“In Scotland, we are trying to keep the suckler herd. Beef from dairy-bred animals is very much a commodity product. We can’t afford to compete in the commodity market,” said Hill.

Crucial for the Scottish beef industry is also that they have managed to keep the majority of abattoirs in Scottish hands, with an independent structure and clear focus on specific markets. The impression given by Scottish farmers and processors is that they have close working relationships – a sense of being ‘‘in this together’’. It is not an impression often given in Ireland.

A thought process often put forward by farmers is that if they produce lower numbers of cattle, it will force local abattoirs to pay more for beef.

That might work in the short-term but, in the longer term, it is not a solution to margin pressure within beef production.

Don't be fooled into cutting numbers

“Don’t fool yourself into thinking that dropping numbers is a strategy. It will just force processors and retailers to go elsewhere for their supply,” Hill said.

He also warned farmers to think seriously before cutting suckler cow numbers. “The day you sell 60 cows, you won’t send 60 cows worth of fixed costs down the road. Unless you have a plan B for the sheds and the labour, you just end up with more costs against your remaining cows,” he said.

Benchmarking

Benchmarking results for Scottish suckler herds in 2012 follow a similar pattern to local CAFRE benchmarking, with only the top one third of upland suckler producers achieving a positive gross margin after variable and fixed costs were removed (net margin of £72.63 per cow). However, the Scottish analysis highlighted that fixed costs (labour, contractors, machinery, depreciation and finance) make up between 50% and 60% of total costs.

“The biggest area we are now working on is trying to get fixed costs per cow down,” said Hill.

While fixed costs averaged £425 per cow in upland herds in 2012, fixed costs were over £600 per cow in some lowland suckler herds.

Confidence returns for beef producers

When the average prices paid for prime cattle in Northern Ireland reached 383p/kg in June 2013, it seemed inconceivable that one year later prices would be down 70p/kg.

Given the long production cycle in beef production, volatility makes it difficult for producers to budget ahead.

While acknowledging that beef prices probably rose too quickly to unsustainable levels in mid-2013 on the back of the horsemeat crisis, Gavin Hill was critical that there was not better co-operation within the beef supply chain to prevent such a drop in price.

“Farmers are often told to co-operate better with processors and retailers, but it works both ways,” he said.

However, he added that with finished beef prices on an upward trend in recent weeks, and the good weather of 2014 which has meant cattle are considerably heavier coming off grass, limited confidence has returned for producers selling stores.

Some confidence is also seen among finishers, who should have lower feed costs this winter on the back of lower grain prices. Barley is selling off the combine in arable areas of Scotland for £95/t to £100/t.

The low price has also encouraged some arable growers in Scotland to feed their own cattle this winter, adding competition into the store cattle market.

Vaccination an aid to disease control

With the housing period only a few weeks away, now is the time to think about strategies to control respiratory disease in cattle this winter.

According to Zoetis vet Aurelie Moralis, each case of pneumonia has an immediate cost of around £82 per calf, which is mainly due to weight loss and the cost of medicines.

But if there is a longer-term setback in growth, the cost per animal is much greater.

The main organisms causing pneumonia are RSV, PI-3, IBR and BVD. Bacteria such as pasteurella can also be a source of infection.

“You can’t vaccinate against everything, but the vaccine will boost immunity. It will also reduce the disease challenge as there will be less virus shed by vaccinated animals, so less virus floating around in the atmosphere of the shed,” said Moralis.

She emphasised the importance of a well-ventilated, draught-free environment, using vaccines according to guidelines and following advice from the local vet.

Spring-born calves

For spring-born calves, Moralis recommends a two-dose course of Rispoval 4, given three to four weeks apart, and completed two weeks before housing (six months protection against RSV, PI-3, IBR and BVD). Cattle should be treated for worms at the same time as the first shot is given.

To protect autumn-born calves, she suggests a single dose of Rispoval IntraNasal from nine days of age (12 weeks protection against RSV and RI3), followed by a two-dose programme of Rispoval 4 from 12 weeks of age.

For bought-in cattle where rapid protection is required, her advice is to use Rispoval IntraNasal along with Tracherine (six months protection against IBR). Bought-in animals should be given at least 12 hours to settle before vaccinating.

According to Gavin Hill, there are a number of beef producers in north Wales, south-west Scotland and the north of England who are making the switch from beef to dairy.

With milk price under downward pressure, he said that beef producers should think carefully before making the switch. He maintained that the prospects for beef remain strong, although he would like to see a change in the direction of CAP where money will increasingly be taken off productive farmers and put onto land.

When asked whether abattoirs in Scotland apply deductions for animals with more than four farm residencies, Gavin Hill (pictured left) said it was something that is not raised in Scotland.

“About 90% of our cattle, when sold as stores to a finisher, will not move from that farm until slaughter. We just don’t move them about. There is no issue with residencies in Scotland,” said Hill.