Launching the report at yesterday’s Agriscot held at Ingliston, Edinburgh, QMS economist Stuart Ashworth pointed out the price of many inputs rose steeply over the first half of the year and there was little respite in input prices until late 2008. Fertiliser prices more than doubled during 2008 while feed and energy costs increased by more than 20%.

Those higher input prices led to some reductions in input use. Many suckler herds made savings of over 10% in the quantities of feed used and reduced fertiliser applications by more than 25%. Despite these physical changes in input quantities, variable costs typically increased by more than 15%.

Ashworth said: “Looking at the general picture, 21% of suckler beef enterprises made a positive net margin, compared with only 4% last year. Fifty percent of finishing enterprises made a net margin, an increase of 19% from last year. All store lamb finishers surveyed achieved a positive net margin, up from 80% last year. 73% of lowland ewe enterprises achieved a positive return with 56% of upland ewe flocks also with a positive return.”

However, he pointed out that hill farms found it more difficult to achieve a positive margin with only 20% of breeding flocks breaking even. Average net margin for hill sheep units was negative at -£1 for the top producers down to -£39.15 for the bottom third.

The results also reveal significant variation in the levels of financial and technical performance – for example in the case of LFA hill suckler herds, where gross margin ranged from– £126 to +£355/cow.

Whilst these figures reflect the situation with the 2008 crop year, the recent buoyant trade for prime lambs and store cattle should improve next year’s results. Ashworth conceded that the recent rise in sheep prices won’t be passed back to hill farmers until next autumn’s sales. Nevertheless, Ashworth detected signs that the headlong decline in the Scottish breeding flock size may have stopped as cautious confidence returned and that the national flock may be stabilising. He also sees early signs that the decline in the suckler herd is beginning to slow.

Ayrshire cow wins Agriscot championship The overall dairy champion at Agriscot was the fifth calved Ayrshire cow Barr Ranger Lottie bought only two weeks ago for 7000 guineas by 23-year-old Ann Laird and her 81-year-old grandfather Colin of Blyth Farm, Blyth Bridge at Alex Kirkpatrick’s dispersal of his noted Barr Herd.

Other cow champions: Holstein – R&E Butterfield, Linghaw, Lancaster, Jersey – Murray Farms, Shipley Bank, Wolverhampton, Red and White – J Lawrie, Brieryside, Prestwick.

Market reports: Laurie and Symington’s Lanark store cattle sale on Tuesday saw quality types maintain recent prices with plainer types harder to cash. Bullocks averaged 168.6p/kg and heifers 157.4p.

James Craig sold 1292 prime lambs and 223 cast ewes at Newton Stewart yesterday. 324 light lamb averaged 163.6p/kg, 707 medium 158.6p and 261 heavy weights 143p to a top of £80 for Beltex. 223 ewes averaged £56.65.

Cumberland and Dumfriesshire Farmers Mart held their weekly sale of prime stock in Dumfries yesterday. Trade remained firm for the 51 prime cattle. Bullocks averaged 157.2p/kg to a top of 180.5p and heifers averaged 167.8p to a top of 192.5p. Cast beef cows averaged 92.1p to a top of 157p and cast dairy cows averaged 83.6p to a top of 103p.

All classes of lambs were exceptionally dear and the best trade of the season. Overall average for 1604 lambs was 162.2p to a top of 176p. Light lambs averaged 162.8p, standard 169.2p, medium 162.2p and heavy lambs 149.9p to a top of £84 for Beltex X. Cast ewes an excellent trade with heavy ewes averaging £63.19 to a top of £89.50 and light ewes averaging £40.27 with Blackfaces to a top of £53.50.