{"id":11649,"date":"2023-11-16T18:54:35","date_gmt":"2023-11-16T18:54:35","guid":{"rendered":"https:\/\/genus-develop.go-vip.co\/promar-de\/?p=11649"},"modified":"2023-11-29T15:08:13","modified_gmt":"2023-11-29T15:08:13","slug":"farm-business-survey-april-october-2023","status":"publish","type":"post","link":"https:\/\/www-dev.promar-international.com\/de\/farm-business-survey-april-october-2023\/","title":{"rendered":"Farm business conditions \u2013 April-October 2023"},"content":{"rendered":"\n

Here we present a quick roundup of the latest interviews and conversations with farmers, undertaken by research officers working on the Farm Business Survey. The full report is available at the bottom of this summary. You can sign up to become part of the Farm Business Survey by clicking the buttons shown on this page. <\/strong><\/p>\n\n\n\n

April-October 2023 results<\/strong><\/h2>\n\n\n\n

We collected this information over a six-month period, from the beginning of April 2023 through to the end of October 2023.<\/p>\n\n\n\n

In general, farmers see volatility and living with risk as the norm.<\/p>\n\n\n\n

Forage harvest<\/strong><\/h2>\n\n\n\n

As farms enter the winter period forage stocks are high. However, changeable weather conditions resulted varying quality of forage, and less hay.<\/p>\n\n\n\n

Milk<\/strong><\/h2>\n\n\n\n

UK milk prices have fallen by over 25%, from a high of 51ppl early in 2023, to an average of 37ppl in September. High feed, energy and fertiliser costs combined with a lack of skilled labour are concerning dairy farmers with many businesses now receiving less than the cost of production.<\/p>\n\n\n\n

Beef<\/strong><\/h2>\n\n\n\n

Market prices have stabilised, but input prices remain high, putting pressure on margins. New Bovine TB (bTB) rules come into force in December 2023. These will require post-movement testing for cattle purchased from high-risk bTB areas, which will squeeze cattle producers\u2019 margins further.<\/p>\n\n\n\n

Sheep<\/strong><\/h2>\n\n\n\n

Lambing 2023 \u2013 the dry summer of 2022 lowered conception rates. The withdrawal of certain vaccines and a cold, wet spring negatively affected lamb health and increased their mortality levels. As a result, with fewer lambs compared to 2022, lamb prices have been strong. <\/p>\n\n\n\n

Store lamb sales in the northern regions achieved prices higher than the previous year due to the stronger fat trade, fewer lambs and good forage availability. In the West Midlands fat lambs are cheaper than store.<\/p>\n\n\n\n

The annual Hawes gimmer lamb sale reported prices of \u00a34\/head higher than the previous year. Shearling prices in the North and Midlands have also been strong, as much as \u00a320-30\/head more expensive than in 2022.<\/p>\n\n\n\n

However, high input costs and low prices for wool mean that margins remain under pressure.<\/p>\n\n\n\n

Pigs<\/strong><\/h2>\n\n\n\n

Producers continue to leave the sector due to costs of inputs and returns that, although higher, do not cover costs. This is generally due to the heavy capital investment required, high feed prices and energy prices, and elevated costs of borrowing.<\/p>\n\n\n\n

Due to farmers exiting the sector, breeding sows are being sold as cull. <\/p>\n\n\n\n

Finished pig prices increased by around 25% during the period, from \u00a3130 to \u00a3160\/head. However, fat pig prices fell in the autumn, to 216p\/kg deadweight. Pig feed began to fall too, which will help offset the reduction.<\/p>\n\n\n\n

Poultry<\/strong><\/h2>\n\n\n\n

Like the pig sector, poultry has been affected by raised input costs and low returns \u2013 but has the added challenge of avian flu. Capital costs, high feed and energy prices, and raised lending rates, have further attacked margins.<\/p>\n\n\n\n

Outbreaks of avian flu have been reported across the regions. The residual effect on producers is lengthy, due to the need for 12-month quarantines for affected sites. Avian-flu insurance premiums are reported as being unaffordable. <\/p>\n\n\n\n

Many free-range producers are reducing flocks or ceasing production, which has led to egg shortages. The free-range egg price increased towards the end of the period with some receiving \u00a31.47\/dozen. Whilst welcomed, it may not be enough for some producers to return a profit.<\/p>\n\n\n\n

Cultivations<\/strong><\/h2>\n\n\n\n

The relatively wet summer resulted in lodged crops which impeded combines and resulted in losses, poor quality grain, high moisture levels increasing crop drying costs and less straw was baled in sharp contrast to the exceptional dry harvest of 2022. <\/p>\n\n\n\n

The dry and warm early October weather aided cultivations and drilling, but this was short lived. The rain later in October, plus autumn storms, added to the already saturated ground, impeded drilling of later crops and hampered harvests, including maize and sugar beet.<\/p>\n\n\n\n

The extended dry period after spring planting impacted on the development of the late drilled spring crops.<\/p>\n\n\n\n

Crop prices are reported as insufficient relative to input costs, notably the high fertiliser and sprays costs. There has been a move to using Liquid Nitrogen, due to it being cheaper and allows for more targeted foliar application.<\/p>\n\n\n\n