Finlay relies

on his herd instinct...

 

Farming North

Spring 2005

 

by Edwin Gillanders

 

         website: www.balaldie.com

One beef producer who is confident of survival in a decoupled world without dipping in to his Single Farm Payment is Ross-shire breeder Finlay Munro who, with his wife, Ann-Marie, runs a suckler herd of 140 Aberdeen Angus cows at Balaldie, Fearn, Tain.

 

Mr Munro has just been announced winner of the Bank of Scotland Aberdeen Angus Suckler Herd of the Year award with an impressive gross margin of £279.36 per cow - one of the highest of any lowground suckler herd in Scotland, according to SAC benchmarking figures -which compares with an average of £70.09 for the top third herds and an average loss of 0.25p for all herds.

 

The profit per kg of liveweight works out at £1.23, against a mere 0.5p for the top third and an average loss of 0.5p.

 

"These figures give me encouragement that I can maintain a profitable beef enterprise without subsidy, but it will be tight and much will depend on market prices," Finlay says.

 

But he is confident that costs have been pared down as much as possible - variable costs work out at only £58.55/cow compared with £79 for the top third and an average of £87 - and that he is well-placed with the Aberdeen Angus breed to maximise returns from the market, with the premium for Angus prime cattle running at 15-10p/kg deadweight.

 

"I can't see prices rising to the £2.50/kg advocated by the National Beef Association, so the only other way to maintain profitability is to get costs down," he says.

 

The departure of his only employee two years ago gave Finlay the chance to re-assess his beef enterprise and restructure his farming business.

 

It was decided not to replace his employee and to move calving from March 1 onwards to the last week in April to avoid a clash between spring work and calving.

 

"The most dramatic effect has been on the financial performance of the cattle enterprise, where the gross margin has risen by 60 per cent with only eight more cows," he says.

 

"The combination of better genetics and a streamlined system has given the unit a huge boost and made us look at CAP reform with confidence."

 

But it is hoped costs can be cut further still by the better use of grass rather than silage and extending the grazing season.

 

Hard standing has been created this winter to take cows off the grass completely from December to March, and stubble turnips are to be tried this year.

 

In addition, calves will be pushed harder to finish at 16-18 months rather than stored for three to four months to qualify for the second beef premium (and risk attracting over-weight penalties).

 

Key to the success of his system, Mr Munro believes, is the use of top Aberdeen Angus genetics. The aim is an easy-fleshing cow with a frame score of 6.5-7.5 with adequate - but not excessive - milk.

 

Great attention is paid to structural soundness, which is essential when the aim is high liveweight gain.

 

Last year, 88 per cent of the cows calved within a six-week period and there were no assisted calvings in either 2003 or 2004 and only one in 2002.

 

Calves are not creep fed until October and growth rates to weaning of 1.11kg for heifers and 1.21kg for steers are being achieved - and rising as new genetics kick in.

 

The current stock bull is Rawburn Erupt, who succeeded Rawburn Duke of Abercorn, but home-bred bulls from the farm's 10-strong pedigree herd are also used, including embryo sons of the top North American sire GDAR Traveler 044.

 

A particularly good Findhorn bull - bred by Mr and Mrs John Stark at Aiten Farm, Ardersier -bred well and is sire of many of the cows in the herd.

 

The emphasis on quality is certainly paying off. Steers consistently grade U and R for conformation - there have been no O grades in the last three batches of cattle slaughtered - and prices of up to £2.18 were being achieved last spring to Scotbeef and A K Stoddart.

 

The home-bred bull Balaldie Lord Thor Y696 is currently the top Aberdeen Angus sire in Brand Beef Breeders Ltd's rankings for carcase quality.

 

The herd has also won the award for the best pen of four heifers at the autumn show and sale of Aberdeen Angus store cattle at Thainstone for the past three years, and last year also took the award for the best pen of four steers.

 

The winning pen of 430kgs heifers averaged £450 and the 531kgs steers £640.

 

Great attention is paid to animal health, and the implementation of a health plan and vaccination programme through the Hi-health scheme has seen BVD eradicated and the virtual elimination of costly pneumonias and scours.

 

With eldest son James studying agriculture at university and keen to come home, the priority is expansion of the farming business.

 

An increase in cow numbers is planned - 130 cows and 23 heifers have been put to the bull this year - at the expense of spring barley in view of prevailing poor feed and malting barley prices.

 

But enough will be grown for straw and to provide bruised barley which is fed to growing cattle, along with dark grains.

 

Peas are also to be tried as a protein source to reduce the requirement for dark grains - the only bought-in feed brought on to the farm (except for two tonnes of high mag cobs bought last year for the first time in eight years as a precaution against staggers).

 

What Mr and Mrs Munro have achieved in slashing costs is what other beef producers will have to aspire to in the coming months to stay in business.

 

It highlights yet again the yawning gulf between the top beef producers and the rest, and the valuable role top Aberdeen Angus genetics can play.