Lamb: Cost of production and performance

This section contains costings and performance results from AHDB benchmarking activities (at home and abroad) that allows farmers to compare their performance (technical and financial) with both themselves (year on year) and with others with similar production systems or those competing in the same market.

The information in this section provides technical and financial data for breeding sheep and (store) lamb finishing.

This information includes a number of Key Performance Indicators (KPIs), which are a measurable value that indicates whether a business is achieving its key goals. KPIs allow a business to focus its attention on what parameters matter most for success, and provide an analytical basis for decision making and improvement. A robust KPI provides a direct indication of business efficiency, sustainability, and profitability, the elements critical for success.

International comparisons of production costs and physical performance provide a snapshot of UK performance against other countries we compete with in a global market.

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The importance of efficient use of grass is recognised across the world as it is the cheapest food source.

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Take a holistic look at your business. Attention to detail can lead to significant gains.

Financial KPIs

Financial KPIs show if your business is profitable, and are the most important as they are linked to all other KPIs as they all have costs associated with them. Financial KPIs can be a measure of how much it costs to produce each kg of lamb you produce on farm.

Technical performance

Technical performance also provides KPIs that impact on your business.

Each farm must budget and plan to optimise their financial and technical performance for their own circumstances and resources.

Productivity

Fertility includes measures such as lambs reared per ewe to ram. The measures provide a straightforward indicator of the business viability as, without fertility, there would be no viable business. However, it is possible to maximise fertility at the cost of profitability, so fertility should always be compared to your financial KPIs.

An example of optimising financial and technical performance around fertility will be deciding whether to keep an indoor or outdoor production system.

Survivability

Health and welfare KPIs can be a measure of how much medicine is required to produce each kg of lamb, or the percentage of mortality. Medicine usage is a good indicator of the effectiveness of health and welfare across your enterprise. A high use tends to indicate issues with diseases and welfare.

Yield

The key to measuring yield KPIs is weighing stock. There are key points that lend themselves to gathering weight data more than others. The usual measures are daily liveweight gain (DLWG) but can include kgs per hectare that measures the efficient use of the forage available, or kgs of lamb reared per ewe to ram that measures the efficiency of the total breeding flock.

KPIs - if you wish to calculate your own KPIs you can use one of AHDB's benchmarking tools - KPI Express and Farmbench.

These can be found under the Tools section of the AHDB website.

AHDB KPI Express https://kpiexpress.ahdb.org.uk/Home/Index

AHDB Farmbench https://ahdb.org.uk/farmbench

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