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BETTER MANAGEMENT CONTRIBUTES TO 50% RISE IN ARABLE GROSS MARGINS
Date added: 12/03/07 |
The UK’s top arable producers increased Winter Wheat margins by over 50% last year but it wasn’t all down to higher cereal prices, according to ProCam’s 4cast analysis of crop production for 2006.
Announcing the results at the company’s Spring Conference in Newmarket on March 7th, technical director Dr. David Ellerton said it was clear the best arable farmers made significant strides forward in productivity and cost management last year.
The top 25% of growers in 4cast’s national database of farms across the UK achieved Winter Wheat gross margins of £724.57/ha in 2006 compared with £475.99/ha in 2005 – a rise of 52%.
This compares favourably as well with the £684.24/ha achieved by top 25% growers in 2004. What’s more the best farmers are stretching their lead over average producers. In 2003 the top 25% growers achieved gross margins £96/ha higher than the average compared with £160/ha higher in 2006.
“The best producers have used the impact of low cereal prices to focus on their management and now that prices have risen, they are in a better position then ever before with higher yields and lower production costs,” Dr. Ellerton explained.
In terms of output, the top 25% of growers increased Winter Wheat yields from 9.9 tonnes/ha in 2005 to 10.2 tonnes/ha in 2006. Top 25% yields in 2004 were 9.5 tonnes/ha.
On the costs side, the top crop producers also made progress with a drop in variable spray costs from £14.49/tonne in 2005 to £13.90/tonne in 2006. Fungicide usage dropped from £5.94/tonne to £5.67/tonne over the same period.
When compared with average performance, 4cast shows the best managed farms achieve gross margins £160/ha higher, have yields some 1.3 tonnes/ha more and spend over £3 less per tonne of production on sprays.
“The figures clearly show that the biggest determinant of an arable unit’s profitability is not it’s soil type or farm size but the quality of it’s management inputs,” Dr. Ellerton explained.
‘Using the right products at the right time at the right dose rates and not stretching spray intervals, all have a major impact on farm profitability. No one factor is responsible for one farm’s exceptional profitability and another’s average performance, but making sure you understand your
crop’s requirements and acting in as timely and accurate manner as you can will make all the difference.” |
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