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Searching out new opportunities post CAP Reform
Within
less than 12 months CAP Reform will be in place. The current tedious paper
work and accompanying payments will have been replaced by a single payment
and markets will be finding a new equilibrium. What’s more all farmers will
have the freedom to restructure their business to become increasingly
sustainable and profitable in the run up to increased levels of modulation
in 2013.
Jim Neil says he faces a future of real opportunity with two options for his hill unit, Boreland of Balmaghie, near Castle Douglas. "We will either feed our Charolais cross steers and heifers very hard and finish them from 14 months onwards to target weight and within the specification, or else we’ll expand our suckler herd to capacity, sell all calves as forward stores and leave the finishing to farmers located in the Eastern counties with cheaper byproducts to hand," he explains. "My gut feeling is we’ll go for the latter option because access is extremely restricted for finishing materials in the South West and the haulage costs involved will make this system for me prohibitive. Boreland of Balmaghie is essentially a grass rearing unit, and it’s not surprising that previous generations of Neils drove all their cattle to finish in the East part of the country. Jim currently runs just over 500 suckler cows, together with a complementary flock of 350 ewes and a small pedigree Texel flock on the 1,500 acre owner occupied LFA unit, with a further 300 rented acres. "I’m seeking to build a sustainable unit with three labour units plus family labour, and economies of scale will be essential or else we’d have to consider a specialized added value enterprise," explains Jim who farms in partnership with his mother, Margaret and wife, Morag. "I’ve also decided to focus on developing the beef enterprise because the shortage of quality product reared from the beef herd will persist. SAC predicts GB will continue around the 60% self sufficiency mark, and subsequently the stronger market will hold. "We have the resources to take the suckler herd to 750 cows and at the same time maintain the current sheep numbers. We’ve recently streamlined our accommodation and feed system to simplify management, and with the intention to expand numbers. However to build to 750 cows will mean all the calves will have to be marketed at 12 months in spring just prior to turn out." The Charolais cross heifers are currently taken through to finishing while steers are sold through the store ring. He argues the future, is not only about quantity, but also continuing to supply a top quality product to meet market requirements. "We’ve used Charolais as the herd’s terminal sire for almost 30 years, and one thing for certain is the breed will have a real future because Charolais leaves calves that will continue to meet exact market requirements. "Charolais crosses are efficient, they have that unbeatable weight for age, and they’ll produce a carcase which is preferred by processors over other Continental crosses for its hind quarter muscling, but above all its higher content of higher value loin muscle," says Jim who is chairman of the 1,500 strong MacIntosh Donald producer group. "What’s more, Charolais crosses have good temperament." In the last 12 months Boreland of Balmaghie, finished 192 Charolais cross heifers at an average 17 months, 296.7kgs deadweight and with 96% within the R 4L specification to achieve an average £505. The last batch of 70 Charolais cross steers were sold weaned and without creep after first BSP payment, at an average 16 months and 520kgs to realise £616. Jim’s late father, Jim Neil pioneered Charolais in region during the early 1970s. "He’d witnessed what Charolais could deliver in terms of increased scale, fleshing ability and overall improved performance over native bred cattle on a visit to Bobby Robinson’s at Snipe House, Alnwick. He returned home with our first Charolais bull and the breed has had a major presence ever since. While we have tried other Continental terminal sires, Charolais has consistently outperformed in terms weight for age and quality conformation." The unit currently runs seven Charolais bulls sourced from leading herds. "I select a bull that is carrying a decent amount of flesh over the loins, and who is very sound on his feet and legs. I’m also a firm believer of using Estimated Breeding Values. They’re more than just a back up tool, they confirm what’s under the skin," he explains. "For example I select on EBVs, in particular for traits for growth rate, and his Beef Value must be within the breed’s top 25%. In addition, we run a closed herd, so to minimize risk of introducing disease, I’m keen to purchase from a pedigree herd which is in a registered health scheme." Jim started breeding his own suckler replacements five years ago. "We are implementing a criss-cross breeding policy with carefully selected Aberdeen Angus and Simmental genetics in an attempt to achieve a 550kg to 680kg quality cow with milk, motherability and longevity. We are calving everything to the Angus at two years, female progeny are served with the Simmental, and then all third calvers are put to the Charolais. He adds: "All farmers should regard CAP Reform as an opportunity to be grasped. I believe that for every enterprise, profit will be found in the single farm payment. And I think the only way we will be able to maintain viable farming businesses will be for an environment payment to help us maintain the countryside. Fluctuating world prices and policies will not allow us to make a living from farming alone."
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British Charolais Cattle Society