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Thirty years of financial evolution of farms

Analysis engineer at INRAe in Clermont-Ferrand, Patrick Veysset presents the outcomes of a research on the buildings, practices, productiveness and profitability of suckler cattle farms.

Going over thirty years of suckler cattle breeding historical past in a single hour is sort of a problem taken up by Patrick Veysset, analysis engineer at Inrae in Clermont-Ferrand. As a part of the research journey organized by the Regional Chamber of Agriculture of Burgundy-Franche-Comté within the Loire, this analysis engineer at Inrae in Clermont-Ferrand got here to current a research on the buildings, practices, productiveness and profitability of suckler cattle farms. A retrospective of the financial outcomes of those farms masking the final thirty years.

His first remark is as follows: in cattle breeding, over the interval involved, labor productiveness was very excessive and this occurred in parallel with an elevated simplification of practices. Nonetheless, herders’ earnings has stagnated. The query then is: how are the productiveness positive aspects shared throughout the sector? Over the interval 1988-2018, farm areas elevated (+90%), in addition to animal numbers (+75%). On the identical time, the workforce fell by 5%. UAA to labor items greater than doubled as earnings per THU stagnated. In 30 years, labor productiveness has elevated by 1.92% per yr whereas land productiveness has fallen by 0.22% per yr. This displays a development in the direction of the extensification of farms.

An increase that hides a fall

The technical effectivity of the working system (intermediate consumption and capital) has additionally fallen by 0.62% per yr. ” All the things has been carried out to provide extra per employee, observes Patrick Veysset, however nothing has been carried out to provide higher “. The engineer additionally thought of numerous financial standards: ” Over 30 years, help to agriculture has elevated, the typical worth of hire has fallen, as have rates of interest within the contribution of capital, but in addition the revenue of farmers. We will additionally take note of the autumn within the worth of cereals, and subsequently the acquire for patrons, but in addition that of the value of meat. The truth is, the rise in labor productiveness masked the decline in productiveness of many different components. “.

Patrick Veysset’s presentation was supplemented by an instance of 43 Charolais farms monitored by Inrae over 26 years. Their SAU grew by 54% and their herd by 50%. Over this era, we additionally see a decline within the numerical productiveness of moms. Between 1990 and 2017, the share of weanlings within the whole gross sales of those farms elevated from 40% to greater than 70%. Fats bulls aged 17 months remained secure at 20% of the full. The load productiveness of the animals elevated on common by 9%. ” What we see over this era, continued the Inrae engineer, is a sure standardization and breeding of animals moderately on the trough, in reference to the simplification of practices. “.

Higher seize the added worth

The research additionally notes that in 1990, the power wants of animals had been lined at 87% by fodder. As we speak it’s lower than 80%. The rise in prices, particularly mechanization, can also be identified: they represented 30% of whole prices in 1990, however 40% right now. In parallel with this enhance in mechanization, there’s additionally a rise in using concentrates in animal feed. Based on Patrick Veysset, “ the growth and simplification of practices are against the effectivity of manufacturing programs: genetics are valued much less. In suckler cattle, economies of scale do not work. However, they make it potential to capitalize, which is nice for the operator’s retirement “.

Confronted with this remark, the engineer wonders if, in the long run, we sufficiently worth the interior assets of the farms, earlier than searching for exterior technological options. ” The problem, he continues, is figuring out the best way to seize and create added worth in manufacturing. Grass fattening is usually a lead, there’s additionally remuneration for the companies offered by livestock (carbon storage, water high quality, biodiversity) “. Too typically, productiveness positive aspects seem like captured by the downstream of the sector: ” Within the worth paid by the patron, concludes Patrick Veysset, there are an increasing number of companies (packaging, processing) and fewer and fewer materials… »

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