Abandon Hope....

[Jac]

Just came across this article. Really appreciate the comments at the end. I thought it was because I was a very small concern.

http://www.birminghampost.co.uk/lifesty ... ft-3919055

[Rob R]

That was an interesting article, thanks for posting, it's rather indicative of agriculture in general, sadly, not unique to Dexters. We just have the added challenges of them being,

“...a disease. When you get into them, you are lumbered with them. They are not like normal cattle. They are characters.”

We don't make much money out of them, just enough to invest in a few more every year, but it's a fine balancing act that I'm sure could be improved if we just acted a little more carefully over costs and returns. A real problem for Dexter breeders is to keep an eye on the fixed costs - the cows themselves work hard to keep the variables down. At half the size though you're bound to need at least twice as many to spread those costs over.

[Jac]

We don't make much money out of them

So are we saying that without any government/EU funded schemes you would be in a similar position to Mike?

[Rob R]

We don't make much money out of them

So are we saying that without any government/EU funded schemes you would be in a similar position to Mike?

No, unfortunately I started in business during the reference period which meant that, prior to this I did start to claim some extensification premium & slaughter premium for a couple of years but then we went onto the flat rate SFP so we didn't get any of the historic payments (it dropped down to 10%). We only own 10% of our land too so it isn't much but it's gradually built back up over the years but I've always tried to treat it as extra capital rather than income. If I were fully stocked and set up (eg if we'd inherited a business) I can see that it would be sustainable at this scale, but as it is, money is split between trying to live and to invest. Fixed costs (rent, electric, water, etc) are the killer so at the moment the herd is just too small to spread them over the Dexters alone. We have to sell some forage, rather than putting it through the animals.

I think that in the future, if farming is to continue in this country, farmers will have to be much more careful to measure things (both financially and productively) in order to ensure that producing more is actually worth it. If you're going to be just as rich/poor producing twice as much then you may as well spend more time doing other things that you enjoy and not contribute to the near constant pressure on prices.

[Hillside Ben]

Always makes for thoroughly depressing reading when you see stuff like that. I've just caught up on last weeks First Time Farmers too, where one of the guys was basically told by his accountant to contract out the farm and do something else if he wanted to make any money. Their small size means they are not really viable, due to economies of scale. (They didn't say what size they were.)
As someone who has never had subsidy, and built my way up from a rented 1.5 acre paddock I started with, I find it hard to see the benefit of subsidy to newcomers to agriculture. It appears to push rents up and encourage older farmers not to let go of anything as their income is directly related to the amount of land they hang onto.
Having said that, I am trying to get registered as a new entrant for the new Basic Payment Scheme, but it all seems very up in the air at the moment. We are still trying to work out whether we'll qualify and what we will qualify for if we do.

[Jac]

So what went wrong?

http://www.meattradenewsdaily.co.uk/new ... ttle_.aspx

[Saffy]

Are you asking why we aren't all selling our Dexter beef to Ireland? If so I would say it might be because lots of UK Dexter owners sold lots of Dexter cattle to Irish farmers over the last few years and they are rearing it themselves quite well. Irish Dexter cattle - producing Irish Dexter meat....much more authentic than anything we can supply then with and it is already there!

Stephanie

[Jac]

Yes, there is that Saffy but I think no one was under any illusion that once Ireland sorted itself out they would stop importing beef.

I was focusing on

... which led to a surge in demand.

and

even more significant increase in stock prices as demand for Dexter beef grows

[Rob R]

What the article fails to mention is that they also want;

...the moon on a stick

We have a lot of diversity in the breed, which is a good thing in many ways but not when it comes to selling to the trade. Only a certain type of Dexter kept a certain way (bigger type on higher sugar grasses) are in demand, not the clinging to a rock & eating moss type. I keep Dexters that err towards the latter and I have no wish to change, as I don't think the grass really is greener.

That said, I did have an enquiry from a Northern Irish butcher the other week wanting a couple of sirloins, which I didn't have (who has sirloins going spare in high summer!?). If you want me to give him your details I can.

[Jac]

(who has sirloins going spare in high summer!?).

You've been browsing my online shop. What I find really strange is when I do a late autumn/winter kill steak demand almost always outstrips supply. Explain that one - pushing the boat out for Christmas who knows?

Off topic I know but in 'A Subject for Another Thread' I said

That aside, customers were arriving to collect their beef, there he was hearing them say how fantastic it was last time and how they were really looking forward to eating whatever it was they had planned for dinner etc etc. but that still did not change his view because in his mind Dexter beef was £6.50 a kilo and I was overcharging at £11.

I stand corrected, his wife purchased £110.20 worth from the online shop inc some sirloin and the rest of the rump.

[Rob R]

Wives know what they're doing

[Mkay]

Having Dexters should give you auautomatic planning permission for a wind turbine. That would solve our financial woes.