Store Lamb Profitablity

[robcarrick]

looking at planting a main crop of turnips/swedes to finish hill lambs on. Would anyone have a rough idea of how many lambs could be finished per (ha/acre) on a well established crop and the costs involved?

 

[Man_in_black]

@neilo

 

[CopperBeech]

I suspect a lot of people are having similar thoughts right now!

 

[AvonValleyFarmer]

I suspect a lot of people are having similar thoughts right now!

Hopefully the wheels don't fall off.

 

[It was already broken.]

I suspect a lot of people are having similar thoughts right now!

You are not wrong. I bumped into some cattle boys the other day who were suggesting their first foray into sheep might be store lambs onto turnips next winter. I think a couple of hundred hill lambs that have never seen an electric fence before might give them the run around though.

 

[neilo]

@neilo

A piece of string can be any length. IME the crop varies so much according to the season, time of drilling, etc that you can’t predict stocking capacity until you actually have the crop.

 

[robcarrick]

Seems that even on an average year when hill lambs are making less than the 90-100 quid mark we’re seeing currently, there’s a margin between the 20-30 pounds buy in fee and the 80ish mark that you would hope to usually receive

 

[sherg]

every year is different if it wasn't for decent prices this year a lot would scale back or give up with store lambs it has been terrible for the last few years, if your farm is on the heavy side in a year like this or 2 years ago you will struggle to get them fat without putting hoppers in
As for your question a good crop of turnips will probably keep 15 lambs for 12-16 weeks

 

[sherg]

Seems that even on an average year when hill lambs are making less than the 90-100 quid mark we’re seeing currently, there’s a margin between the 20-30 pounds buy in fee and the 80ish mark that you would hope to usually receive

When are you thinking of buying them? if you buy lambs at 20-30 pounds you'll really struggle to make them worth £80 in an average year

 

[neilo]

Seems that even on an average year when hill lambs are making less than the 90-100 quid mark we’re seeing currently, there’s a margin between the 20-30 pounds buy in fee and the 80ish mark that you would hope to usually receive

Even in a ‘normal’ year, whatever that might be, you won’t be buying many £20-30 lambs and turning them out at £80. Those £20-30 lambs are usually very long keep lambs, a good proportion of which might not make it at all, unless they get special (expensive) treatment.

 

[robcarrick]

Even in a ‘normal’ year, whatever that might be, you won’t be buying many £20-30 lambs and turning them out at £80. Those £20-30 lambs are usually very long keep lambs, a good proportion of which might not make it at all, unless they get special (expensive) treatment.

My Neighbour sold all his lambs off farm for 25 quid each, I know that those same lambs have been making over 100 last week. Is this year that out of hand to the point that those lambs wouldn’t usually be making 80?

 

[robcarrick]

When are you thinking of buying them? if you buy lambs at 20-30 pounds you'll really struggle to make them worth £80 in an average year

Looking to buy early November, grass tack them untill end of Jan before moving onto Turnips and concentrates if needed, in an aim to sell March/April. Seen it done this year with big margins. Just trying to understand what the definition of an ‘average’ year is to avoid being burnt

 

[sherg]

What type of hill lambs are we talking? there can be a margin but its very easy just to have their company for the winter as well

 

[beefandsleep]

Next year will probably be the one to sit out.

 

[robcarrick]

Swales, yes unpaid company is what i am hoping to avoid

 

[robcarrick]

Next year will probably be the one to sit out.

I am thinking the same, be plenty of people with a similar idea, if the bubble burst and we see a ‘average’ year might be in a better position to make a decision for following years

 

[texelburger]

This year has been good,apart from the weather,as fat lamb prices have left a decent margin for most.You can bet your bottom dollar next year won't be the same,everyone will be chasing store lambs with the expectation of prices being similar.As dad used to say"Jumping into something that was good last year means you are a year too late" A year is a long time in farming.

 

[JD-Kid]

use to work for a fella used to work on 10% profit on them each turn over after direct costs carting drench the odd death etc etc selling cost all added in then turn over a few times a season say 3 times thats 30% return on money per year
better system than saying 30-40 bucks a head in some ways eazy to put 10% value on some lines harder to finsh them tho

 

[Kiwi Pete]

use to work for a fella used to work on 10% profit on them each turn over after direct costs carting drench the odd death etc etc selling cost all added in then turn over a few times a season say 3 times thats 30% return on money per year
better system than saying 30-40 bucks a head in some ways eazy to put 10% value on some lines harder to finsh them tho

Thats the plan here too, the only trap is paying too much, you have to know your costs, the margin you want, and set a firm limit as to what you'll pay.

Sounds like common sense but plenty get into bidding wars, and soon lose a fair bit off their margin before they have got them home, but a widespread feed shortage can be a lucrative time to buy forward lambs that don't need much

 

[Wooly]

The store lamb buyers have done well this year, but it only makes up tor the years that have seen small margins.

I expect several farmers are also going to be baling every blade of straw this summer, but as with lambs, I doubt you will see this years profit margin in either !