Achieving a margin and expanding without large capital outlay

Although he admits the following batch of 50 Holstein bulls which came on to the farm, near Biggar, in February are unlikely to leave the same sort of margin, he still believes the enterprise is worthwhile if cereal prices and beef prices remain on a par with current levels.

First batch

The first batch of bulls, which originated on First Milk farms, averaged £780/head, having graded O+ and O-, and were paid at the week’s ruling grid price.

“I send in 400-500 Angus and Continental clean cattle to Scotbeef each year, but took on another farm. Stocking it with the same type of stores was going to require a lot of capital. However, it was through the involvement of Scotbeef in the First Milk scheme that I became interested and, with barley at around £85 a tonne, it looked quite attractive.

“Although feed prices have increased significantly, the beef price too has gone up, and while the current batch will not do as well, I still think they will leave a comfortable margin, and I can see a place for them.

“I had these buildings lying empty and I only bed them twice a week and refill the feed hoppers twice a week,” said Mr Cuthbertson.

“With the other cattle, I am mixing and feeding with the diet-mixer every day. The big thing is it does not require huge amounts of capital and, whatever the system, no-one is making a fortune out of beef at present,” said Mr Cuthbertson. “The next batch, which have another six or seven months to go, are looking well.”

The feed is a Harbro cereal- based blend which he forward-bought to cover the current finishing period.

“However, I have to say I would not have bothered with the system if I had had to rear and wean the calves. As it is, everyone makes a few pounds - the dairy farmer gets a price for his calf, the rearer makes a margin and so does the finisher.”

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