Gap Between Top And Bottom Producers Increases

ENGLAND, UK - The gap between top performing and average beef enterprises appears to be widening, according to the results of EBLEX's 2010 Business Pointers.
calendar icon 26 October 2010
clock icon 1 minute read

The eighth edition of the report, launched last week at the EBLEX Annual Conference, benchmarks the financial performance of the English beef and sheep sectors during the 12 months to 31 March 2010.

And the sample shows that although costs have generally risen, increased output has meant margins have improved for the best performing producers for all except cattle finishing herds.

Average performing cattle herds are worse off, but sheep units are showing an improvement compared to the previous year. Most average producers are still achieving negative margins after all costs.

For the first time this year, EBLEX has also published an estimate of pounds per kilogram costs for the current financial year, April to September 2010, alongside the actual costs for the 2009/10 year, to give an even more up-to-date picture.

"The figures show that total costs for English beef and sheep enterprises are up between three per cent and 4.2 per cent in this financial year," said EBLEX chairman John Cross.

"While sheep farmers are being boosted by improved prices, this increase is putting pressure on margins for cattle herds, and adding to concerns about the sustainability of the industry.

"However, longer term forecasts indicate that beef consumption will overtake production, leading to a recovery in prices and better news for producers."

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