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The Uk Market For Organic Beef: Foreword
The Uk Market For Organic Beef: Foreword
The Uk Market For Organic Beef: Foreword
CONTENTS
1. INTRODUCTION 1.1 Background 1.2 Objective of the publication 2. CURRENT AND FUTURE SUPPLIES OF ORGANIC BEEF IN THE UK 2.1 Production 2.2 Consumption 2.3 Balance sheet 2.4 Forecasts 3. PRODUCING FOR THIS MARKET 3.1 Beef systems 3.2 Price premiums and carcase quality 3.3 Variability in breed and carcase weight 3.4 Examples of organic beef costings 3.5 Costings data 3.6 Structural issues 3.7 Key issues for organic beef producers 4. CONSUMER ISSUES IN THE MULTIPLE RETAIL SECTOR 4.1 Introduction 4.2 What is the general positioning of organic shoppers in the retail sector? 4.3 What motivates people to buy organic? 4.4 What is the profile of the typical beef consumer? 4.5 What are the distinctive demand characteristics for meat, beef and cuts of beef? 4.6 What is the specific positioning of the various multiple retailers? 4.7 What is the average price premium from different cuts? 4.8 Implications of the consumer information for organic beef suppliers and producers? 5. KEY CONCLUSIONS APPENDIX A APPENDIX B TABLES AND FIGURES Tables 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Figures 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
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3 3 3 4 4 5 5 5 6 6 6 6 6 7 7 8 9 9 9 10 11 13 14 16 17 18 19 20
Organic Land Existing or in Conversion Estimate of UK Organic Livestock Numbers (existing and in conversion)- 2006 UK Organic Cattle Numbers by Category 2006 Estimated UK Organic Beef Market in 2005 Forecast UK Organic Beef Market in 2010 Summary of Costings Results Organic Shares of Total Market Segment Organic Markets and Growth Rates Retail Outlet Shares within the Organic Market Price Premiums for Different Organic Beef Cuts
4 4 4 5 5 7 13 13 14 16
Total UK Grocery Demographic Map Spend Profile Percentage Percentage of Individuals Agreeing to Statements Lifestyle Indices Total Organic Products Fresh Beef by Tier Demographic Map Percentage Buyers Summary of Over-indexing and Under-indexing Segments for Fresh Beef Regional Index Segmentation of Organic Beef Purchases Total and Organic Fresh Beef by Cut Total and Organic Fresh Beef Shares of Trade Responses of Consumers by Retail Outlet 1 Responses of Consumers by Retail Outlet 2
9 10 10 11 11 12 14 15 15 16
1. INTRODUCTION
1.1 BACKGROUND
This publication results from the initiative taken by Defras Organic Action Plan to explore ways of increasing the home-produced market share of the UK market. It also comes from RMIFs concern about comments from British multiple retailers that they cannot source as much organic beef as they would like from British producers. One such retailer spokesman said recently that When it comes to organic in particular, we know our customers prefer to buy British if it is available (Source: UK Beef Farmer - Autumn 2006). Another said Organic beef could be sold in 400 of our stores but there is (currently) not enough to supply even 200 stores. (Source: Meat Trades Journal November 2006)
Table 1 ORGANIC LAND EXISTING OR IN CONVERSION Total agricultural area (ha) 584,373 905,086 1,101,450 1,226,476 952,575 1,467,469 1,845,360 1,195,601 9,278,388 1,448,683 5,517,140 1,029,500 17,273,711 % of total agricultural area 6.2% 2.4% 1.0% 1.3% 3.2% 1.0% 6.3% 3.8% 3.1% 4.9% 4.5% 0.9% 3.6%
In conversion North East North West Yorkshire and Humberside East Midlands West Midlands Eastern South West South East (inc. London) England Wales Scotland Northern Ireland UK
Source: Defra
Organic 29,296 18,858 8,978 13,172 27,011 11,782 94,008 35,250 238,355 58,024 231,206 6,317 533,902
Total (ha) 35,939 22,094 11,319 15,606 30,228 14,431 115,988 45,973 291,578 70,832 247,930 9,513 619,852
6,643 3,236 2,341 2,434 3,218 2,649 21,979 10,723 53,223 12,808 16,724 3,196 85,951
There were over 2,500 registered producers of organic livestock in the UK, of which 63% were based in England, with 46% of these being in the South West of England. Table 2 shows that there were 214,000 cattle on organic or in-conversion holdings at the beginning of 2006; this represents just over 2% of all cattle in the UK. Table 3 shows the breakdown of the cattle by category. No official figures exist on the actual production of organic beef in the UK. However, estimates made by the Soil Association indicate that in 2005 almost 27,400 head of organically produced cattle were slaughtered in the UK with a farm gate
value of 19.7 million. (In terms of the total prime cattle in the UK this amounts to just 1.2%). On a per head basis this represents an average price of 720 per head compared with the average conventional price of 602, a differential of 118/head or 20%. On the basis of an average carcase weight of 310kgs, MLC estimates domestic organic beef production in 2005 was 8,500 tonnes. However, between 15 20% of this production was not absorbed through the market as organic so estimated sales of UK organic beef were approximately 7,000 tonnes (carcase weight equivalent). In 2006, it is understood that a much higher percentage of organic production was purchased as organic.
Table 2 ESTIMATE OF UK ORGANIC LIVESTOCK NUMBERS (EXISTING AND IN CONVERSION) 2006 Livestock numbers 214,276 691,000 29,995 3,439,548 544 1,486 % of total for livestock category 2.1% 1.9% 0.6% 1.9% 0.6% n/a
CATEGORY 2006
Beef cattle Dairy cattle Suckler cows Calves Other bovine Total cattle
Source: Defra
2.2 CONSUMPTION
Total consumption of organic beef in 2005 was estimated as 11,000 tonnes (carcase weight equivalent), of which approximately 7,000 tonnes was estimated to have been sold through multiple retailers. The remaining quantities were sold through smaller retailers, food service outlets, farmers markets and direct sales. Total organic beef consumption is therefore estimated to amount to about 1.1% of the total UK beef market. Early estimates for 2006 suggest that there may have been a further increase of 15-20% in the multiple retail sector.
Table 4 ESTIMATED UK ORGANIC BEEF MARKET IN 2005 (000 TONNES CARCASE WEIGHT EQUIVALENT) Consumption through Major retailers Total 7 Of which domestic 4 Of which imports 3 Total market as % UK beef consumption = 1.1%
Source: RMIF
Total 11 7 4
2.4 FORECASTS
Forecasts of future consumption and production of organic beef are very difficult to make, and forecasts from different major retailers also vary widely. Some retailers are predicting that organic beef consumption will at least double in the next 3 5 years. One has even said that organic beef will account for as much of 5 10% of their total beef sales by the end of the decade. Others in the industry are indicating that current growth rates will decline and there may even be a plateau in the trend in the near future. Future consumption levels to 2010 are likely to be influenced by the following factors: The extent to which the future growth in demand for organic beef will slow down (growth in 2006 was between 15 and 20%) The premium for organic cuts over other types of beef The ability to balance full carcase utilisation with consumer demand for different cuts and ensure economic viability The improvements in perceived quality of organic product The ability of organic beef suppliers to create further growth in outlets other than multiple retailers Taking account of these issues, Table 5 sets out forecasts for total UK organic beef consumption in 2010. These forecasts can be no more than very approximate estimates from the best current knowledge available. On the assumption of sales through multiple retailers increasing at 10% compound growth - and alternative outlets rising at 15%, the forecasts estimate total organic beef consumption to amount to 19,000 tonnes (within a range of 17,000 to 21,000 tonnes) by 2010. This represents an increase of 70% over current levels and increases the market to 1.8% of total beef consumption. It is recognised that some will still regard these forecasts as very cautious.
Table 5 FORECAST UK ORGANIC BEEF MARKET IN 2010 (000 TONNES CARCASE WEIGHT EQUIVALENT) Consumption through Major retailers 10 - 12 Other: small retail Direct sales/food service 7-9 Total 17 - 21 +55 91%
Future production will chiefly be affected by: CAP/WTO and related import penetration factors The economic viability of organic beef production The extent to which some of the carcase balance issues can be resolved The ability to get a better return on product in the processed product/export sectors The extent to which some of the existing organic dairy calves and store cattle which are sold into the conventional beef market can be sold as organic Trends in organic suckler cow numbers The implications of the consumption requirements are that an extra 15,000 head of organic cattle will need to be slaughtered per year by 2010 if the current domestic market share is to be maintained. If the UK were to supply the whole UK market requirement, the industry would need to more than double its production, with an additional 36,000 head per annum needed.
for achieving cost reductions. Nonetheless, there is a clear message that producers needed higher prices than those existing in August to ensure long-term profitability even if the SFP could provide a short-term cushion.
In terms of cashflow, some animals have to be taken through two winters and summers before they are ready for slaughter. This means tying up capital for long periods of time; in these instances, interest on working capital also therefore needs to be considered when looking at enterprise profitability.
Variable costs ( per head) Calf cost ( per head) Gross margin ( per head) Fixed costs (62p/day) Total Cost ( per head)
Variable costs ( per head) Calf cost ( per head) Gross margin ( per head) Fixed costs (62p/day) Total Cost ( per head)
Net margin ( per head) -172.63 -115.50 -58.37 Net margin (p per day) -22.7 -15.2 -7.7
-1.24 -0.2
63.74 8.4
128.32 16.8
192.90 25.3
257.49 33.8
If calves were purchased as reared calves at 160/head Net margin* ( per head) -165.15 -108.02 -50.89 Net margin (p per day) -21.7 -14.2 -6.7 Break even price (/kg dw) 3.18 2.98 2.78 Liveweight gain (kg/day) 0.64 0.64 0.64
* After adjustment of fixed and variable costs
If calves were purchased at 308/head (1.40/kg) Net margin* ( per head) -99.06 -34.48 Net margin (p per day) -13.0 -4.5 Break even price (/kg dw) 3.11 2.91 Liveweight gain (kg/day) 0.73 0.73
* After adjustment of fixed and variable costs
4.2 WHAT IS THE GENERAL POSITIONING OF ORGANIC SHOPPERS IN THE RETAIL SECTOR?
Figure 1 shows that organic purchasers have an above average income (exemplified by the fact these are a higher than average percentage of consumer purchasers in Classes AB and C1). They are also younger purchasers than average. The figures are based on annual purchases in the 52 weeks ending March 26th, 2006.
55
50
Asda Good For You Tesco Value Asda Healthy Choice Morrisons Bettabuy
Tesco Organic
45
Safeway Savers
40
35
Healthy Tesco Eating Morrisons Health JS Organic = SO Organic Asda Extra Special Sainsbury Freefrom Sainsbury Basics Total Grocery Sainsbury Be Good to Yourself Eat Smart Tesco Finest Sainsbury TTD Morrisons The Best
30 Somerfield So Good 25 30 35 40 45 50 55 60 65 70 75
% of Class ABC1
Source: TNS
41.5 38.4 36.5 31.3 20.4 17.3 19.4 17.5 16.9 14.6 15.3 11.5 2005 2003
Organic is healthier
Figures represent the proportion of consumers answering yes to specific questions on a lifestyle questionnaire Source: TNS
4.3.2
Figure 3 shows some of the lifestyle preferences of organic consumers. All the statements in Figure 3 reflect views that organic purchasers feel more strongly than UK consumers as a whole. There are no great surprises for statements such as I am prepared to pay more for organic food or I believe in a holistic approach to medical treatment. However, of particular interest are statements about country of origin Country of origin is important to me when choosing groceries, regionality I try to support regional food producers; also I regard myself as a connoisseur of food and wine and I am prepared to pay more for quality ingredients.
Figure 3
341 214 180 179 175 173 169 169 168 168 166 157 154 153 148 141 138 138 138 138
Figures represent the propensity of organic food buyers compared to all buyers to agree with the statement (e.g. organic food buyers are 68% more likely than all food buyers to agree with the statement I try to avoid products containing caffeine. Source: TNS
10
Flavoured/Kebab Health
46 44 42 40 38 36 34 No Brand Name 32 30 40
Source: TNS
Premium Organic
45
50
55
60
65
70
% of Class ABC1
4.4.2
Figure 5 which is taken from the Dunnhumby Tesco Club Card data confirms this in a different way. Consumer groupings such as those designated as convenience driven, price sensitive and mainstream underindex on organic beef purchasing, whereas those consumers who have a propensity to purchase finer foods overindex. Unsurprisingly this confirms the TNS analysis in figure 4 which positions organic beef consumers as relatively upmarket and prepared to pay more for quality food. Figure 5
Young Families, Older Families Young Families Young Families Older Families
N.Ireland Scotland N.Ireland Southern N.Ireland Yorkshire E.England N.E E.England Borders London Borders London S.West N.Ireland Borders S.West London
Value Beef
Premium Beef
Pensioners
Data derived from supermarket loyalty card purchasing. Types of beef purchased by lifestage and lifestyle consumer typologies. Source: Dunnhumby
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Figure 6 REGIONAL INDEX SEGMENTATION OF ORGANIC BEEF PURCHASES (12 WEEKS UP TO 9/07/06)
140 130 120 110 100 90 80 70 60 50
Northern Ireland Central Scotland North East Source: Dunnhumby Borders East England Northern Scotland Southern Lancashire South West Wales and the West London Yorkshire Midlands
Shoppers in Yorkshire, Northern Ireland, Borders and the North East significantly under-index for Organic Beef
Shoppers in London are 30% more likely to buy organic beef than the average shopper
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4.5 WHAT ARE THE DISTINCTIVE DEMAND CHARACTERISTICS OF MEAT, BEEF AND CUTS OF BEEF?
4.5.1 Turning to the demand characteristics for fresh meat and beef, it is interesting to note that whereas organic products account for about 2% of total purchases in the fresh and chilled sector, fresh meat accounts for only 1%. Table 7 shows that dairy products and fruit, vegetables and salads amount to over 3% of their respective sectors with yogurt over 8%. The figure for fresh meat is less than most other categories. Table 7 ORGANIC SHARES OF TOTAL MARKET SEGMENT - 000s BROAD AREA MARKET Total Fresh + Chilled 2.09 Chilled Gravy + Stock Total Ambient Groceries 1.19 Peanut Butter Total Frozen 0.41 Yogurt Total Alcohol 0.25 Herbal Tea Total Household 0.03 Hens eggs Total Healthcare 0.00 Honey Total Toiletries 0.00 Flour Vinegar MARKET SECTOR Cous Cous Dairy Products 3.31 Syrup + Treacle Fruit+Veg+Salads 3.16 Dry Pulses + Cereal Hot Beverages 2.38 Chilled Vegetarian Chilled Drinks 2.17 Liquid + Ground Coffee + Beans Packet Breakfast 2.01 Healthier Biscuits Savoury Home Cooking 1.86 Vegetable Savoury Carbohydrates + Snacks 1.65 Total Milk Sweet Home Cooking 1.38 Dry Pasta Fresh Poultry + Game 1.30 Chocolate Spread Take Home Confectionery 1.27 Fresh Soup Fresh Meat 1.07 Home Baking Biscuits 1.04
52 w/e April 23rd 2006 Source: TNS
37.71 16.10 8.35 7.83 6.99 6.31 5.78 5.74 5.70 5.53 5.42 4.62 4.61 4.22 3.92 3.82 3.34 3.31 3.23 3.20
4.5.2
However, Table 8 shows that the fresh beef category is growing more quickly than the organic as a whole. Over the 2 year period to April 2006, fresh organic beef purchases rose by 57% compared with 32% growth for all organic products. In fact, growth in demand for organic beef greatly exceeds growth for organic lamb and pork. Table 8 ORGANIC MARKETS AND GROWTH RATES - 000s 52 w/e April 23rd 2006 TOTAL ORGANIC 930,681 Vegetables 151,848 Milk-Retail 102,210 Yogurts 75,586 Baby Foods 64,778 Fruit 51,409 Hens Eggs 36,727 Tropical Fruit 36,677 Total Bread 25,461 Total Cheese 24,631 Fresh Poultry 23,220 Fresh Beef 20,464 Breakfast cereals 20,443 Fruit Juice + Fruit Drinks 15,338 Defined Child Mt + Veg Prds 13,244 Instant Coffee 11,539 Chilled Prepared Fruit + Veg 10,957 Cooking Sauces + Condiments 10,195 Wine 10,118 Wet/Smoked Fish 9,564
Source: TNS
Figure 7
Other 14.4 28.2 16.8 Stewing 14.8 Roasting Mince 27.2 43.4 Frying/Grilling 28.5 Total Fresh Beef
52 w/e 18th June 2006 Source: TNS
Tesco Sainsbury Waitrose Asda Morrisons Tot Total Co-op Somerfield Tot Indepts Kwik Save Iceland
52 w/e 26th March 2006 Share of Grocers Source: TNS
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4.6.2
Turning to the situation for organic beef, it can be seen that for the year ended June 2006 Sainsburys have the largest market share followed by Tesco and Waitrose; together with Marks and Spencer these outlets account for 88% of fresh organic beef sales. Other retailers such as ASDA, Morrisons and Somerfield have, by contrast, a disproportionately low share of the market. However more recent figures for the second half of the year show a stronger growth for Tesco than other retailers.
16.8 14.8
3.5
14.3
15.4
43.4
38.4
15.4
24.9
22.5 28.6
4.6.3
However, Figure 9 shows that there is a willingness amongst purchasers in outlets other than the main organic beef selling retailers to purchase and pay premiums for organic products. This may suggest that there are opportunities for increasing sales in those outlets which are selling below average quantities.
Outlet Share Index 52 w/e April 23rd 2006 Source: TNS Worldpanel
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Outlet Share Index 52 w/e April 23rd 2006 Source: TNS Worldpanel
48 32
39 -9
37 -4
77 69
66 54
43 25
64 19
59
58
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4.8 IMPLICATIONS OF THE CONSUMER INFORMATION FOR ORGANIC BEEF SUPPLIERS AND PRODUCERS
There is some evidence that organic product being sold is not always meeting the quality demands of consumers. It is further evident that lower quality cuts of organic beef are currently accounting for a higher proportion of total sales than higher quality cuts. Why not focus on a better proposition for those customers who are disposed to purchase organic products which combines organic with better eating quality? There are some key messages which will benefit from being even better communicated to organic beef consumers - in particular, the positive environmental features and the nationality (and where possible locality) issues. These messages appear to be highly positive for organic - and particularly British (or local) organic. There is a wide disparity between the organic retail performance in the different multiples. This goes way beyond what can be explained by the different customer profiles of the retailers and gives rise to two types of
opportunity. For high-performing retailers, there are opportunities for increasing reliance on British product. For lower performers, there is an opportunity for expanding their total organic volumes, as some of their customers at the upper end of the income range may be potential targets. The imbalance in performance for different cuts (see above) is likely to be exacerbating the problem of carcase imbalance. This serves to emphasise the importance of finding ways of achieving better performance for higher value cuts. The price premiums achieved for organic beef vary considerably in relation to the cuts concerned. There may be a need for better understanding of where organic purchasers are buying their steaks and joints.
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5. KEY CONCLUSIONS
The UK organic beef market is growing and is likely to continue increasing (but at a slower rate) in the next 3 5 years. This suggests that there is scope for at least an extra 15,000 20,000 head of cattle to be slaughtered per annum by 2010 compared with current levels. Some retailers indicate much larger rates of growth. The multiple retail sector accounts for two thirds of all UK sales of organic beef. This market segment is therefore critical to the success if more profitable organic beef sales are to be achieved. Because of the current rate of growth in demand, major retailers have been unable to source increased supplies from UK producers and are, therefore, in some cases, becoming more dependent on imports. This represents a good opportunity for British producers, but the costings in this publication show that there has been a squeeze on net margins, although the current (November 2006) price levels have represented a significant improvement. Retailers will need to demonstrate long-term commitment to British organic beef producers and at least maintain their current (November 2006) prices if they are going to obtain the additional supplies from UK sources. Some retailers are committed to doing this, but there is scope for others to follow. In turn, producers have scope for achieving cost savings (particularly in the fixed cost area) and need to be engaging in more benchmarking activity to understand where these savings and value enhancements can best be achieved. RMIF is prepared to play a role in assisting producers in this area. The solutions to many of these issues can be facilitated through more effective communication down the supply chain. The marketing groups and the processors have a critical role to play in improving this situation. There is evidence of structural failures in some supply chains which result in insufficient numbers of dairy herd sourced organic animals entering the organic chain. There is a suggestion that the eating quality of some of the organic beef purchased in retail outlets is not as satisfactory as should be the case, particularly for the higher priced cuts. There is enough technical know-how to put this right at minimal cost. Mince and stewing beef are the best performing categories in the retail sector and this is causing some problems of carcase imbalance which in turn affects producer profitability. Organic beef currently only accounts for 1% of the fresh beef sector in multiple retailer sales, much lower than for other categories. This represents an opportunity for growth but there may also be a need to accompany this with better messages communicated to consumers on the merits of British organic beef. There is much variation in the market shares of different multiple retailers in this sector. This suggests that there are different growth opportunities for the over-performing and under-performing retailers. Price premiums for organic product are very variable but the figures suggest there may be scope for better premiums for organic being passed on to producers.
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Days
Age
Date
(months)
90 Weight Weight Weight Weight 286 0.64 0.63 157 247 409 529
0 3
March June
Start wt Weight
40 103
6 13 19 25
PHYSICAL PERFORMANCE
tonnes 360 0.03 0.25 0.04 60 Age at slaughter (months) Age at slaughter (days) Finished live weight Average carcase weight (kg) Finished price (O+4L) p/kg dw Output ( per head) Variable costs ( per head) Calf cost ( per head) Gross margin ( per head) Fixed costs (62p/day) Total Cost ( per head) Net margin ( per head) Net margin (p per day) 45.00 30.00 27.90 102.90 per tonne 0.25 260 30
Farm A is an organic beef unit that runs alongside a 450 cow dairy herd. The dairy herd is moving back towards greater influence of British Friesian rather than Holstein. A Hereford bull is used on replacement heifers and all the beef cross dairy offspring are taken through to finish at between 18-22 months. All black and white bull calves are retained and finished as steers at around 24 months. Finishing the Holstein steers has been problematic as they need more cereals in the finishing phase than can be fed under the Soil Association standards. Average carcase weights for the beef finishing enterprise are around 280kgs. The finishing diet is influenced by the quality of the grass silage available. Concentrates are fed towards the end of the second summer at grass and are steeped up once the animals are housed. One person is responsible for running the entire beef finishing enterprise.
kg
Starting weight Livewt gain (kg/day) Days in system Total Gain (kg) Weaning weight (kg)
40 0.7 90 63 103
Whole Milk (4 litres/day) Calf concentrate (0.3kg/day) Straw Vet & Med Hay (0.4kg/day)
Homebred 25 761 529 286 260 742.72 443.53 0 299.19 471.82 915.35 -172.63 -22.7
Bought reared 25 761 529 286 260 742.72 331.85 160 250.87 416.02 907.87 -165.15 -21.7
Grazing Start weight Daily live wt gain (kg) Days in system Gain (kg) Weight at Housing (kg) 0.09 165
1st Winter (from 1 October) Daily live wt gain (kg) Days in yard Gain (kg) Weight at turnout (kg) 1.8 1.0 0.2 25 30 155
If calves were purchased as reared calves at 160/head Net margin ( per head) Net margin (p per day) Break even price (p/kg dw) Liveweight gain (kg/day) 5.00 10.00 10.00 25.00 Total concentrates (tonnes) Total concentrate cost () 25 30 155 69.00 30.00 65.10 25.00 189.10 Sensitivity on net margin Calf price Feed price Fixed costs Market Returns Killing out % 5% 5% 5% 5% 1% Difference Difference Difference Difference Difference
-165.15 -21.7 3.18 0.64 0.72 114.87 6.00 4.00 15.00 37.00 14.00
Second Summer (from 1 April) Daily live wt gain (kg) Days at grass Gain (kg) Weight at Housing (kg)
Second Winter (yarded from 1 October) Daily live wt gain (kg) 1.0 Days in yard 120 Gain (kg) 120 Weight at slaughter (kg) 529
Days
Age
Date
(months)
01/03/06
March
Calf born
7 13 19 25
COSTS
kg
Farm B is an organic suckler unit running 135 suckler cows, 90 of which are spring calving the other 40 cows calving in the autumn. The cows are mainly South Devon or South Devon cross Limousin which are run with high EBV value South Devon bulls. All the progeny are finished on the farm at around 22 months of age. Average carcase weights for heifers are 280-290kgs; for steers 360-370kgs. The vast majority of animals grade R4L; 15-20% grade at O+ and just 5% at grade U-.Cattle are stored over the first winter before being turned out to grass at about 350kgs. To hit the key autumn market, cattle are housed in early September where they are fed a finishing diet comprising grass silage, home grown cereal and beans and some organic stock feed potatoes. The majority of cattle are finished over the period November mid February. A flock of 160 breeding ewes is also run. The finished cattle need to be away by mid-February to allow the ewe flock to be housed for lambing and to provide accommodation for the cows when they start calving in early March.
Starting weight Livewt gain (kg/day) Days in system Total Gain (kg) Weaning weight (kg)
1st Winter (from 1 November) Daily live wt gain (kg) Days in yard Gain (kg) Weight at turnout 2.2 1.0 0.2 25 30 165 54.00 30.00 29.70 113.70
Homebred 25 762 598 322.9 280 904.18 368.00 0 536.18 472.44 840.44 63.74 8.4
Bought weaned 25 762 598 322.9 280 904.18 353.00 308.00 243.18 342.24 1003.24 -99.06 -13.0
Second Summer (from 1 April) Daily live wt gain (kg) Days at grass Gain (kg) Weight at Housing 5.00 10.00 10.00 25.00
Second Winter (yarded from 1 October) Daily live wt gain (kg) 0.8 Days in yard 180 Gain (kg) 144 Weight at slaughter/turnout 598 4.1 1.0 0.4 25 30 155
If calves were purchased at 308/head (1.40/kg) Net margin ( per head) Net margin (p per day) Break even price (p/kg dw) Liveweight gain (kg/day) Total concentrates (tonnes) Total concentrate cost () Sensitivity on net margin Calf price Feed price Fixed costs Market Returns Killing out %
5% 5% 5% 5% 1%