Farmbench for better margins: Positive flock margins in 2023–24

Farmbench data for the 2023–24 season showed both upland and lowland sheep flocks achieved positive margins. In this article, we explore these national results further to understand what has driven profits.

Key Points

• Both SDA and non-SDA flocks saw positive profit margins on average
• Market price was key to increased profits in the non-SDA flock
• Lamb output in the SDA flock increased from 2022-23, whereas the non-SDA flock decreased

What is Farmbench?

Each year AHDB supports farmers to record their business performance through our online tool, Farmbench. Farmers can measure current performance and identify areas to build on by comparing to our national figures, while helping AHDB to better understand and support the beef and lamb industry.

The most recent national benchmarks for livestock production will soon be released on our cost of production page. These are available for farmers to start benchmarking their own business either individually or with the help of our Regional Farmbench Managers.

Headline results

The dataset has been split into two groups; flocks which are farmed in severely disadvantaged areas (SDA), and flocks in non-severely disadvantaged areas (non-SDA). Each group was averaged for 2023–24 (lambing 2024) and 2022–23 (lambing 2023) for comparison.

Year-on-year comparisons of Key Performance Indicators (KPIs) for the average SDA and Non-SDA flock

Source: AHDB

SDA flocks

SDA flocks saw on average a £22 increase in net margin per ewe put to the ram in 2023–24. While a 3.5% reduction in costs helped achieve this, higher incomes were the driving factor. On average the number of lambs the SDA flock reared increased by 6 percentage points this year, with reared lamb weights 1 kg heavier than 2022–23. Combined with higher market prices, this resulted in £18 more income per ewe put to the ram.

The increase in lamb numbers started at scanning. While the percentage of empty ewes remained similar, scanning was 7 percentage points higher than 2022-23. The SDA flock had only slightly higher losses than the previous year, resulting in 133 lambs reared per 100 ewes put to the ram, which again is an increase from 2022–23.

Cost of production and income for SDA and Non-SDA breeding flocks, 2022–23 and 2023–24

Source: AHDB

Non-SDA flocks

On average, lambs left the non-SDA flock worth 10% more per kg, despite a higher proportion sold as stores compared to 2022–23. This was the key reason for a £16 increase in profitability per ewe put to the ram, supported by a drop in cost of production by 5.3 percentage points. This drop was largely due to farms using less labour per ewe put to the ram.

Output was a challenge this year with lambs reared falling by 6 percentage points compared to lambing 2023, through both lower scanning results and higher losses. Poorer weather may have been a key reason for this, with wet conditions having more of an effect on non-SDA flocks than typically later lambing SDA flocks. Weather also impacted lamb weights, with daily liveweight gain dropping by 0.1 kg/day, and reared lambs weighing 0.6 kg less in the 2024 than the previous year.

Scanning and lambing KPIs for SDA and Non-SDA breeding flocks, 2022-23 and 2023-24

Source: AHDB

Conclusions

While non-SDA flocks maintained the highest profit margins on average, there were significant increases in profitability for the SDA flock. These farms kept costs low, while improving output and making effective use of strong market prices. A focus on net margins will be increasingly important for all flocks going forward, with the steeper than anticipated reduction in the Basic Payment Scheme (BPS), and the uncertainty around future environmental payments. These positive changes to profitability across both flock averages show hopeful signs toward financial viability without BPS. 

The AHDB Farmbench tool is fully supported by our Regional Farmbench Managers who can assist you in comparing your farm to the national dataset. Get in touch today to arrange a visit. 

Our 2023-24 figures are soon to be published on our cost of production webpages. Visit these to start comparing.  

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