Farmbench for better margins: 2023-24 insights for SDA and Non-SDA suckler herds

Using the latest 2023-24 Farmbench data for suckler herds, we review herd performance and compare this season’s results with those from the previous year.

Key Points

• Overheads increased across all herds in 2023-24 compared to the previous year, with SDA herds seeing the largest rise
• Higher weaning values boosted income per cow put to the bull
• SDA herd losses worsened in 2023-24 compared to 2022-23 whereas non-SDA herds reduced losses
• Only the top 25% performing SDA and Non-SDA herds made a profit in 2023-24, a consistent trend every year since 2020-21. In a future article, we will explore what sets these top performers apart.

What is Farmbench?

Each year AHDB supports farmers to record their business performance through our online tool, Farmbench. Farmers can measure current performance and identify areas to build on by comparing to our national figures, while helping AHDB to better understand and support the beef and lamb industry.

The most recent national benchmarks for livestock production will soon be released on our cost of production page. These are available for farmers to start benchmarking their own business either individually or with the help of our Regional Farmbench Managers.

Headline results

The dataset has been split into two groups; herds which are farmed in severely disadvantaged areas (SDA), and herds in non-severely disadvantaged areas (non-SDA). Each group was averaged for 2023-24 (autumn 2023 and spring 2024 calving) and 2022-23 (autumn 2022 and spring 2023 calving) for comparison.

Year-on-year comparisons of KPI’s for the average Non-SDA and SDA suckler herd

Source: AHDB

SDA Herds

The average SDA herd experienced increased costs in 2023-24, compared to 2022-23. The significant rise in overheads was largely driven by higher labour, machinery, and rental values.

Lower fertility rates and higher mortality resulted in fewer calves on the ground at weaning. Despite this, a 25% increase in the value of calves at weaning led to higher income per cow put to the bull this year.

Unfortunately, increased income was not sufficient to offset these higher costs, which resulted in an average loss per cow of £224 in 2023-24, up from £125 in 2022-23.

However, the average top 25% of SDA herds achieved a small profit of £64 per cow due to higher income and lower costs compared to the middle 50% and bottom 25%. Since 2020–21, only the top 25% of SDA herds have consistently remained profitable, with varying profits of £42.46 in 2020–21, £178.76 in 2021–22, and £87.98 in 2022–23.

Suckler Herd Cost of Production and Income

Source: AHDB

Non-SDA Herds

The average non-SDA herd experienced a slight increase in variable costs in 2023-24 compared to 2022-23. Herds were fed on average 21% more forage and 27% more non-forage feed. However, due to a reduction in non-forage feed costs by 17% per tonne and less creep feed utilised, this led to an overall 30% reduction in feed and forage costs.

Overall, income per cow put to the bull increased in 2023–24. Improved fertility resulted in more calves on the ground at weaning. More calves coupled with an 11% increase in the value of weaned calves, reduced the average losses to £78 per cow, down from £223 in the previous year. Profitability in the average top 25% of non-SDA herds rose to £217 per head, achieved through lower costs across all areas, compared to the middle 50% and bottom 25%.

Suckler herd scanning to weaning KPIs

Source: AHDB

Conclusion

The 2023-24 Farmbench data highlights the continued financial pressures faced by suckler cow herds, particularly in SDA areas. With profitability consistently achieved only by the top 25% of herds, the data demonstrates the importance of monitoring and improving livestock performance, in addition to controlling overhead and variable costs. In our upcoming article, we will explore what the top 25% of suckler herds do differently, and how that translates into profitability.

The Farmbench tool is fully supported by AHDB through our Regional Farmbench Managers who can assist you in comparing your farm to the national dataset. Get in touch today to arrange a visit.

Our 2023-24 figures are soon to be published on our cost of production webpages. Visit these to start comparing. 

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