Increasing Your Profits From Beef Farming There are huge differences between farms in the level of profits made from beef farming. This can be seen when comparing the top 1/3 of beef farms to the average and even greater still when the bottom 1/3, says a report from Teagasc, 'Increasing your Profit from Drystock Farming'. Whether it is suckler farms selling weanlings, suckler farms finishing their progeny, or non-suckling beef farms buying weanlings/stores for finishing, the same message is consistent. On average, the farms producing the highest amount of beef per hectare are making the highest profits per hectare. Combined with this, a control on the costs that are associated with producing this output is also very important. Variable costs represent approximately 50 per cent of total costs and include feed, fertiliser, veterinary and contractor charges. Increasing beef output per hectare On suckler farms there are three areas that affect the level of beef liveweight produced per ha. These are:- Production per suckler cow Performance per head. Stocking rate per ha. Obviously on non-suckling farms production per cow does not play a part and performance per head and stocking rate are the two variables involved. 1. Production per cow The more live weanlings produced every 365 days per 100 cows put to the bull the higher the average production per cow. This is affected by: Cow fertility: The sooner a suckler cow goes back in calf and produces her next calf the more productive she is. A high empty rate and long average calving interval are both signs of poor fertility. Participation in ICBF Herdplus for beef will provide detailed information on calving interval for your herd, show how you compare with the national average, and identify cows with breeding problems. Bull fertility: It has been estimated that 25 per cent of all stock bulls are sub-fertile and 4 per cent are infertile in any one year. Low fertility in a bull running with a suckler herd can dramatically reduce the productivity of the herd, in the current and subsequent years if it is not discovered soon enough. Having the bull prepared well in advance of the breeding season is vital and close observation during the breeding period is essential to ensure the bull is functioning properly. Calving pattern: The more spread out the calving pattern is the lower the average production per cow. Do not leave the bull running with the cows all year. Herds with a compact calving pattern confine the breeding period to no more than 70 days and remove the bull at this stage. The option with cows not in-calf at this stage is to cull or some can be let slip six months to calve at the start of an autumn herd if they must be kept in the herd. Cows that are consistently poor breeders should be culled. Mortality: Calf deaths at or shortly after calving can be high on some farms. Pay attention to expected calving difficulty of the bull at purchase to minimise calving problems, monitor cow condition and nutrition from drying off to reduce the risk with the cow. The mortality rate from then until weaning also needs to be kept to a minimum. 2. Performance per herd The more liveweight put on each growing animal the higher the overall output per hectare. This is affected by: Liveweight gain at grass: The standard of grassland management on the farm will have an enormous influence on this. Where cattle are grazing a plentiful supply of high quality leafy grass performance will be at the maximum. Where cattle are grazing poor quality swards, due to either low levels of ryegrass or poor management, liveweight gain per day will be very poor. A long grazing season is essential to maximise performance at grass and early turnout in spring is achieved by planned closing/resting of fields from the previous autumn. Performance in the second half of the grazing season from July is an area where grass quality and weight gain are often poor due to poor grazing management in the early part of the year. Pastures must be grazed tightly up to June to ensure the basis for leafy grass later in the year. Liveweight gain indoors: The feeding value of the forage fed over the winter will have the biggest affect here. Grass silage of low dry matter digestibility (DMD) or poorly preserved forages will lead to little or no animal gain for close to half the year. On growing cattle the higher the level of gain required in the indoor period the higher the costs and it may not be economical to attempt to finish animals indoors unless they are at or above their target weight for age – this is especially true for steers or heifers. Cattle going back to grass should achieve the shortest possible indoor period. Level of meal feeding: The more concentrates or alternative energy sources fed (e.g., beet) the higher the level of output per head. Where there is a return for feeding this extra feed source it makes sense to do it. Where there is not it needs to be questioned. The duration of the feeding period has a huge impact on the economics of finishing, as feed efficiency reduces over time. This is particularly important for steers and heifers, less critical for young bulls. Animal health: Healthy cattle that are free of parasites, respiratory diseases etc. put on more beef liveweight per day. Timely use of the correct dosing products is essential to maximise the payback. Do not waste money on dosing when it is not necessary – e.g., a turnout dose for cattle free of parasites is money wasted. 3. Stocking rate Where production per cow and performance per head are high, maximising the number of animals farmed per hectare should be the next priority. Every farm has a limit on the amount of cattle it can accommodate. This depends on: Land type: Free draining fertile soils can carry more stock per hectare than wet farms with poor soil fertility; Grassland management system: Rotational grazing gives greater control over managing grass quality and supply and results in higher utilisation of grass thereby increasing stock carrying capacity and consequently beef output per hectare; Cattle housing availability and labour availability. Controlling production costs In general, the more beef a farm produces, the higher the costs per hectare to produce that beef. Farms with a high beef output per hectare can afford to have higher variable costs per hectare, whereas, farms that have a very low production of beef per hectare find it difficult to justify even their very low costs of production. The more beef produced per hectare the more the production costs are diluted. A farm with 400 kg of beef liveweight produced per hectare has very high variable costs per hectare at €400 compared with a farm with variable costs of €600 per hectare but an output of 800 kg of beef liveweight per hectare. Systems with low beef output per hectare must obtain most of their production from grazed grass and must minimise the input of purchased concentrates. High output systems can afford larger concentrate inputs provided the overall cost per kilogram of beef produced is economical. The aim with variable costs is that they should match the level of production; the target should be close to 75 cents per kg of beef produced. A farm therefore producing 400 kg of beef per hectare should be aiming for no more than €300 per hectare on feed, fertiliser, vet and contractor charges (this will be extremely difficult to achieve and this type of farm needs to increase its output per hectare to dilute its costs of production). The variable cost limit is €600 or less on the farm producing 800 kg per hectare. Your own farm’s figures When looking at your own eProfit Monitor results what are the key areas that you should focus on to ‘benchmark’ yourself against other farms and targets? (i) Output of beef liveweight per livestock unit (LU) This is a measure of the amount of beef liveweight that a farm is producing for every LU being farmed. It takes into account both cow productivity and performance per head. On suckler farms it should be at least 300 kg whereas on non-breeding farms it should be over 400 kg. The higher it is, the higher your output of beef liveweight per hectare will be. (ii) Stocking rate This is measured in LU per hectare. A stocking rate of less than 1.5 LU per hectare is quite low. The aim should be that it is as high as your farm will allow taking into account land quality, REPS and Nitrates Directive limits. The majority of commercial beef farms, looking to maximise their profits from beef production, should be aiming for a figure of at least 2.0 LU per hectare. (iii) Output of beef liveweight per hectare. This is a combination of (i) and (ii). If either is low it will be difficult to achieve a high output per hectare. On suckling farms selling weanlings you should aim for this to be over 700 kg per hectare. Where the progeny are brought through to beef it should be over 800 kg and where all the cattle are bought (no suckler cows) it should be over 900 kg per ha. (iv) Variable costs per Kg Variable costs of production should match the level of output of beef produced. Farms with low levels of production should have very low variable costs whereas farms with a high output of beef per hectare can carry significantly higher variable costs per hectare and still have a higher margin per hectare than the low output farms. Look at the costs to produce 1 kg of beef liveweight. The target is 75 cents or less for variable costs. Fixed costs The main items in fixed costs include depreciation, machinery running costs, repairs & maintenance, land rental and interest. Motor costs, insurance, hired labour and machinery leases are also included. Generally, any item that can not be directly linked to an enterprise and which varies little with changes in scale of enterprise is termed a fixed cost. Fixed costs represent approximately 50 per cent of total costs on cattle farms and can have a huge impact on overall profitability level. The stage of development on a particular farm can influence the level of fixed costs – farms with good facilities and adequate machinery in place may have low depreciation and interest costs where the investments were made some years earlier. Farms with very recent substantial investments will have much higher current costs for depreciation and interest where the new investment was funded with borrowing. A very significant influence on fixed cost level on cattle and sheep farms is the level of single farm payment. Before decoupling cattle premia (suckler cow premium, special beef premium, slaughter premium and extensification premium) were included as part of output from the cattle enterprise and generally fixed costs consumed approx 30 – 35 per cent of output value – that is farms with a high output level per hectare had much higher fixed costs per hectare than farms with a low output value per hectare. Since decoupling the old cattle premia are no longer counted as part of the cattle output value and the fixed cost structure inherited from pre-decoupling results in the fixed costs consuming a much higher percentage of the lower cattle output value. The same principles about reducing variable costs per kg beef output also apply to fixed costs. Achieving the highest physical output of beef produced per hectare is the means of diluting fixed costs per kg of beef. It is essential for farms with low beef output per hectare to have very tight control on both variable and fixed costs. The absolute level of fixed costs may be more difficult to control but high fixed cost farms can only reduce the cost per kg beef produced by increasing output of beef produced per hectare and/or reducing fixed cost spending level. Profitability from the cattle enterprise will ultimately be determined by the difference between the cost of producing a kg of beef and the market price of the beef. Efficient farms with a high output of beef per hectare have diluted total costs per kg beef produced and are maximising profitability. At farm level there is little influence on selling price other than improving quality and/or targeting niche markets and/or contract prices. The target production costs for very efficient operators are approximately €1.50 per kg liveweight with this equally split between variable costs and fixed costs.

WELFARE ASSOCIATION CONSTITUTION

CONSTITUTION

1. PREAMBLE

This constitution applies to all members of this group. All are expected to adhere in all collection, plans and functions of one or the entire membership must be within this constitution.

2. (a) NAME.

The name of the group shall be…………………………………….
Proposed, agreed and approved by members in a group

(b)Registration
Registered as a welfare association in the ministry of gender and culture

3. OBJECTIVES OF THE GROUP

I. Help members in areas of welfare and the improvement of living standards
II. Unite members in bold friendship and mutual understanding
III. Acquire and manage assets
IV. To create a forum for members to socialize, share ideas and experiences
V. Any other objective that members agree upon.

4. REGISTRATION

I. Over 18 years of age
II. Be in the animal health/production industry
III. Of good moral values /conduct
IV. Share and uplift the objectives of the group
V. Upon voting and acceptance by members, this new member is entitled to pay the prescribed registration non refundable fee as per the rules and regulations

5. EXECUTIVE COMMITTEE

(a)The executive committee mandate comprise of;
I. To coordinate and facilitate the implementation of the objectives of the group
II. To prepare and give regular reports
III. Implement resolutions made by the group
IV. Interpret the constitution
V. Any other matter as directed by the group




(b)Comprise of elected group members;

 Chairman
 Secretary
 Treasurer


6. DUTIES OF EXECUTIVE MEMBERS

(a)Chairman will;

I. Be the spokesman of the group
II. Show direction and lead group members and all group activities and any other issue of common interest to the group
III. Chair all group meetings in adherence to this constitution

(b)Secretary will;
I. Be the custodian of this constitution , all records, resolution reports and correspondence of the group
II. Take minutes of all deliberation and table reports to the executive committee for discussion
III. Be in charge of organizing meetings for executive committee, monthly meetings and the AGM
IV. Invite the committee meeting in liaison with the chairman

(c)Treasurer will;

I. Keep proper record of book of accounts,
II. Prepare budgets and the annual returns
III. Draw statements of income and expenses, cash flow and the balance sheet
IV. Ensure safe custody of group assets and keep updated records
V. Be a signatory to all financial statements with the chairman and secretary.

7. ELECTION OF OFFICE BEARERS

(A) Office post
All group members are eligible to hold any office post. The aspirant must not have any disciplinary case 12 months prior to elections.

(b)Tenure of office
I. Election will be held annually.
II. The chairman, secretary and treasurer can only serve for only two consecutive terms, re-election can only be done after 3 terms
III. A by election can be called to fill in any vacancy within two months




(c)Removal from office

Any executive member can be replaced

I. During the annual general meeting
II. Before the expiry of the office tenure, through a substitution motion passed and approved by a majority of 2/3 of the members
III. As a result of clause 10(a) i,ii,iii and iv

(d)Methodology from office

Election will be by show of hands or secret ballot

(e)Assumption of office
Upon election, the new office bear(s) will; assume office for 21 days when the necessary instruments and the financial statements are handed over.

8. ANNUAL GENERAL MEETING

The annual general meeting will be held when the election is conducted.

(a)Agenda of AGM

I. Confirmation of the minutes of previous AGM.
II. Chairman report.
III. Election of executive committee.
IV. AOB


(b) Special annual general meeting.


The executive committee or any member in the event of urgent matter will call a special general meeting of any special purpose by giving a notice to members in writing of 7days to all members. Half of the members shall consist of SGM.










9. ASSETS AND LIABILITIES.

(a)Funds

The group shall obtain funds from;-

I. Members’ subscription and contribution.
II. Fines and penalties as set in the rules and regulations of the group.
III. Good will from well wishers.
IV. Any lawful source e.g. banks, micro-finance institutions.

The group shall operate a bank account, with the executive members as the signatories
A special general meeting can replace any of the signatories in consideration of the welfare of the group.

The financial year shall run as indicated in the rules and regulations

(b) Contribution.

I. Members shall make a contribution as indicated in the rules and regulations. Any change must be supported by 2/3 members.

II. On welfare and social affair the members shall contribute a minimum amount as indicated in the rules and regulations.

10. (A) WITHDRAWAL OF MEMBERSHIP AND REFUND OF CONTRIBUTIONS.

(a)The following situations will terminate membership.

I. Voluntary resignation by informing secretary in writing.
II. Upon death of a member.
III. If a member fails to attend three meetings continuously without sufficient reason[s] or fails to remit the agreed contribution for three months, will be deemed to have voluntary withdrawn his membership.
IV. If a member is found to have behaved in gross misconduct or in a manner that adversely affect the dignity of the group.

(b) Appeals.

A member aggrieved a determination under clause 10[a1] may appeal to the executive committee within 30 days.


(c ) Refunds.

In any case above the treasurer shall reprocess any item in his/her procession and will;-

Refund a percentage as per the rules and regulations
10 [ii]. Pass any resolution made by the group as per the rules and regulations.



(11) AMENDMENTS.

I. Any member can come up with proposals of amendments to this constitution by writing to the secretary who in turn table the same to the group for discussion and approved by at least a quorum of the members.

II. Such attendants are forwarded to the registering authority.




12. RULES AND REGULATIONS.

Other than this constitution, simple majority [50%] will amend the rules and regulations from time to time as determined by members as annexed herein.


13. EFFECTIVE DATES.

This constitution must be passed by voting at least 65% members and become effective immediately.

The current office bearers will be deemed to have been elected under this constitution of their last term as per clause 7[b] upon of the constitution.


14. DISTRIBUTION.

Each member is entitled to a copy of constitution and on event of amendment being made; they must give to each other.

Distribution cost will be borne by the group.




15. DRAWINGS.

Any drawing by a member shall be charged as per the rules and regulations. Before any drawing is made, it must be approved by all members if essential security will be given.

16. SHARING OF PROFITS.

Any profit or loss made or incurred will de shared by members in the basis of fixed capital/contribution.

17. DISSOLUTION OF THE GROUP.

I. The group shall not be dissolved except by a resolution passed at AGM, the resolution must be supported by 75% of members.

II. Upon approval of the dissolution by registering authority .the executive committee shall take no action other than liquidation for cash all group assets and settle all liabilities