Bleak price outlook kills off plan for on-farm finishing
Bleak price outlook kills off plan for on-farm finishing
A plan to finish steers over
winter rather than selling
them as low priced stores
has been abandoned.
Robert Davies reports
A CLOSER study of the figures has convinced the Daltons that there is no money to be made by finishing steers on the farm; only heifers will be now be kept through the winter.
The original plan was based on the assumption that the price of prime cattle would improve, and barley would continue to be cheap. While the latter seems likely, Margaret and John see little hope of a significant upturn in the market for finished stock.
"When we sat down and took a new look at the figures it was clear that any profit would have to come from the premium for selling them with red CIDs," said Margaret. "But the steers will not be eligible for these until next spring, long after we hoped to sell them. One of our regular buyers offered us the chance to save transport and auctioneers commission by taking them straight off the farm with blue cards, so we sold them."
The 12 largest weighed an average of 450kg and realised £370 a head. Five others weighed 400kg and made £310 a head.
"That left us with the problem of what to do about the heifers we intended to finish. When I saw similar weight store heifers sired by the same bull sell for only £130 a head at the local market, I decided they would have to be taken to slaughter."
About 30 lighter young cattle will be stored over winter as cheaply as possible on silage and organic vegetable waste. A fortnight ago the risk of poaching after a week of heavy rain meant there was insufficient usable grass for the cattle, so they were offered straw and vegetables. Things have improved since, but supplementing will continue until housing.
"It would be great to have an open autumn to get all the stock really fit, and to shorten the winter. Some good weather now would do a little to lift our depression about the terrible state of livestock farming. Things are tight but there is no way we are giving up. Our bank manager says do not worry because he is confident the business will weather current problems.
"But he admits what all of us in the industry know, that many family farms will not survive this crisis, and we will see large upland areas ranched rather than farmed."
Margarets gloom has been deepened by the deaths of a suckler cow and a five-week-old calf, continuing the highest calving period mortality she can remember.
With killing ewes selling locally for as little as 25p a head, Margaret and John retained 32 of the best culls and put them to a Suffolk ram on Sept 1. These "old ladies" will be given plenty of tender loving care in the hope of getting a bumper bonus lamb crop. Tupping of another 70 full-mouthed ewes started this week.
"Because we have not disposed of all our older ewes, and bought extra replacements last year, we have decided not to buy any ewe lamb replacements, even though perhaps we should when they are about £25 a head cheaper than in 1997."
All the main flock ewes have been checked, dagged and crutched, and wormed. Two new Texel rams have been acquired. One was bought privately and the other cost £195 at a local sale.
"Lambs are still finishing very slowly, and everyone else seems to have the same problem. We are due to make a large draw but I have a feeling this could coincide with a big flush of lambs on the market. We have also been disappointed by the classification of some of the lambs we have sold, and their prices."
Only six of the last batch of 13 submitted to Waitrose/Farm Assured Welsh Livestock scheme qualified for premium. The overall average return was £32 a head compared with £40.34 in the same week last year. A load of lambs entered at the local market averaged 88p/kg.
"With prices at this level nobody should be surprised when angry farmers block the Severn Bridge and protest at party conferences. I regret to say that some direct action could get out of hand because people feel they now have nothing to lose."
Unprecedented demand for contractors to make early autumn silage is keeping John busy.
"It has been a great year for us, and many new customers are already booking us for 1999. The higher capacity harvester is allowing us to take on much more work." *
FARM FACTS
• A 125ha (310-acre) less favoured area beef and sheep unit in mid-Wales farmed by Margaret Dalton and her son John, who also operates contracting services.
• Managed in association with an ADAS full-farm advisory package.
• Quota for 435 ewes. Scotch Mules are put to Rouge tups and the female progeny used to produce Texel sired prime lambs.
• Quota for 85 sucklers, Hereford x Friesians, Welsh Blacks and Longhorn x Welsh Blacks, used to breed Charolais cross stores.
• Small poultry enterprise.
• One full-time stockman, and variable number of full and part-time contracting staff.
• A 125ha (310-acre) less favoured area beef and sheep unit in mid-Wales farmed by Margaret Dalton and her son John, who also operates contracting services.
• Managed in association with an ADAS full-farm advisory package.
• Quota for 435 ewes. Scotch Mules are put to Rouge tups and the female progeny used to produce Texel sired prime lambs.
• Quota for 85 sucklers, Hereford x Friesians, Welsh Blacks and Longhorn x Welsh Blacks, used to breed Charolais cross stores.
• Small poultry enterprise.
• One full-time stockman, and variable number of full and part-time contracting staff.