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Fair price for product. Sian Davies NFU Dairy Adviser. The NFU champions British farming and provides professional representation and services to its farmer and grower members. Fertiliser price index. Animal feed price index. Motor fuel price index. Combined Beef Rearer/ Finisher. - PowerPoint PPT Presentation
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The NFU champions British farming and provides professional representation and services to its farmer and grower members
Fair price for product
Sian Davies
NFU Dairy Adviser
The NFU champions British farming and provides professional representation and services to its farmer and grower members
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Fertiliser price index
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Animal feed price index
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Motor fuel price index
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Sales prices upMore calves reared
More concentrates usedLabour costs up
Higher power and machinery costs
Producers (per cow costs) Average Top third
Output £822 £846 Total costs £1152 £942Net margin (09/10) - £330 - £96
(08/09) - £307 - £115
Combined Beef Rearer/ Finisher
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Sales prices upPurchase stock costs higher
Cattle finished heavierLess concentrates used
Feed, forage and fixed costs up
Producers (per cow costs) Average Top third
Output £1088 £1020 Total costs £1323 £1036Net margin(09/10) - £236 - £16
(08/09) - £200 - £49
Extensive Beef Finisher
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Sales prices higherHigher store purchase prices
Less concentrates used/ Lower feed costsLarge amount of alternative feeds used
Higher power and machinery costs
Producers (per cow costs) Average Top third
Output £901 £945 Total costs £954 £881Net margin (09/10) - £53 £63
(08/09) - £12 £137
Intensive Beef Finisher
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Current situation• Costs are even higher (international cereal prices
increased sharply /export prices up 70% on Feb 2010).• Margins improved for top producers but mixed results
for the average.• Total costs in 2010 up between 3.5 to 4.7%.• Cattle margins under pressure• Global food prices increased for the eighth consecutive
month in February.
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Food security?Part of Britain’s problem is its increasing reliance on food exports. Britain is less self sufficient now than it was in 1968.
Just 58.9% of the food eaten here is produced here.
The NFU champions British farming and provides professional representation and services to its farmer and grower members
The future• Impact of higher raw material costs on retail prices. • Impact of stronger commodity prices at farm level. • Higher feed costs are already hitting livestock producers,
with significant falls in farm incomes recently forecast by Defra.
• Prices of all commodities are rising again (FAO).• Unprecedented levels of offers and discounting by British
retailers (39% of all food on promotion). • Impact that rising oil prices will have on all involved in
the food supply chain.
The NFU champions British farming and provides professional representation and services to its farmer and grower members
ConclusionHigh commodity prices + Higher cost base +
Continued market volatility!!
As a supply chain, we all need to recognise these new market dynamics and adapt the
way we work.
To ignore this puts the viability of our farmers and food producers at risk.
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Thank you for listening
Sian Davies
NFU Dairy Adviser