Gross margins on Better Beef Farms jump 53% since joining the programme
Farmers participating in the Teagasc Better Beef Farm Programme have seen gross margins on their farms jump by 53% since joining the programme in 2012, according to Teagasc Director, Professor Gerry Boyle.
Professor Boyle was speaking at the Teagasc Better Beef Farm Conference in Tullamore on Tuesday.
Boyle said that the majority of this increase has occurred as the 31 farmers participating in the second phase of the programme have increased the productivity of their farms.
“Beef prices only increased modestly at 8%.
When we analyse the growth in gross margin, about 83% of the improvement in gross margin is down to increased productivity.
Boyle said the increase in gross margins seen on the Better Beef Farms has been impressive, rising from €675/ha in 2012 to €1,029/ha.
The Teagasc Director said that independent of the market place, beef farmers can make substantial profits when they focus on grassland management, breeding and herd health.
Any rise in beef price or drop in costs is an extra bonus to the Better Beef Farms, he said, and it is like the icing on the cake.
Better Beef Farms match dairy farm profits
Boyle also said that two of the farmers taking part in the programme produced gross margins in excess of €1,800/ha.
However, Boyle also said that the 31 farmers involved in the programme have matched the profit levels achieved on over 50% of Ireland’s dairy farms.
One of the highest margins was achieved on a farm in Kerry, with the heaviest soil type in the programme.
Boyle also said that the Better Beef Farmers are producing profits that are 50% higher than the average Irish beef farm.
“The farms that have participated in the Better Beef Farms programme are showing the way for farmers.
“The average performance of national beef farms is about half of what the better farms have achieved,” he said.