Controlling Costs at Dalswinton

Dalswinton lost £81 per cow in 2022/23 – was this all down to cost?

In 2022/23 all farmers saw variable costs rise by extraordinary levels and this undoubtedly was the change at Dalswinton which put the business into loss from profit the previous year. The costs of diesel, fertiliser, seed, vet and medication were all up.

However, what has come into focus is fixed costs. Labour costs were substantially above comparisons. Labour at Dalswinton is at £181 per cow against an average comparison of £135.

With a calf rearing percentage on 92% and average live weight gain of 1.1kg per day the production performance can be balanced with high labour costs. The team at Dalswinton is paid a fair wage for the work they do.

The question raised is can Dalswinton be more efficient or are other farmers not reflecting the true cost of labour? Many farms are run by families who do not fully account for their own time. The answer probably lies in a bit of both. The industry needs to reflect a true wage for production in order that we can meet all of the requirements put on us to produce a sustainable product.

At Dalswinton we need to continually review our system and understand how we can reduce the cost of production. However, achieving a sustainable position may actually involve a higher labour cost than is currently reflected by comparisons.

The Beef event at Dalswinton will provide a great opportunity to discuss this and other issues further.

Dalswinton Facts

• The herd is 550 suckler cows
• The breeds consist of Blue Greys, Luings, and Shorthorn. They are then crossed with an Aberdeen-Angus. The terminal sire is a Charolais.
• Stores are sold at 10 to 12 months old at an average weight of 400kg

Each week on the lead up to Scotland’s Beef Event at Dalswinton, Peter will put together a headline of information with a different subject area about the herd. The publication schedule is as follows:

1                              Introduction to Dalswinton

2                              Production of beef at Dalswinton

3                              Marketing of beef at Dalswinton

4                              Controlling cost at Dalswinton

5                              Cropping at Dalswinton

6                              Carbon and Biodiversity position at Dalswinton

7                              Financial support at Dalswinton

8                              Application of modern technology options at Dalswinton

9                              The future at Dalswinton

 

If you are interested in finding out more about the Dalswinton Estate beef enterprise and the future of Scottish beef production, head along to Scotland’s Beef Event at Dalswinton Estate, Dumfriesshire, on Tuesday, 6 June. Tickets are now available to purchase so don’t forget to take advantage of the Early Bird discount.