Skip to main content

Farm; Half year performance

 People appear to be genuinely curious.

2024 has been a record first half for the farm.  The addition of high tunnels has greatly impacted our revenues.   While we expected Q1 profits to be higher, it really was the second quarter that produced the goods.  The terrible weather has greatly impacted the production of high-end vegetables.

Energy costs are now very stable and have become a fixed variable especially now that our bio digesters are fully dialled in.   Replacing some of our pre-dryer equipment was covered under warranty, and the new equipment is far better at dealing with gas moisture, and much better steel!   Our diesel costs are what they are!

Our biologist and ecologist devised a new planting plan for our high tunnels that greatly reduced pests, especially slugs.   We have seen a 90% decline in sluggs this year, resulting in better yields.   It seems that several plants act as natural repelants and if planted correctly (location) provide real protection.

As we mentioned before, we are not planning on adding to our twenty-two high tunnels, our biogas consumption is now optimized between power generation and supplemental heat in the high tunnels, and gases that promote plant growth.   In order to grow production we would need to build an additional biodigester, the economics are simply not there.  In the first half of 2024 nearly 55% of total production was for self-consumption, in 2020 our first full year of production, 20% of our production was for self-consumption (butter and cheese) which we process on site.

Going forward, we are planning to increase the quality of produce, making our produces the most sought-after, we anticipate a slow but steady decline in the high-end demand for our produce so to remain in our current revenue stream, we will need to further improve the quality of our produces.  The lower-quality output will be reserved for our processing businesses.  When we talk about lower quality we do not mean flavour, we mean shape and appearance, for our farm, flavour is the single most important component, no one wants a pasty tomato...We see the decline in demand as a natural consequence of a weakening economy.

Jennifer, our farm manager convinced my wife and me to increase the size of our cow and goat heard, we can easily double our butter and cheese production, and the additional cost is marginal, both milking stations are only working at 40% capacity, and demand still far exceeds supply.  

The pigs (that seem to interest a very large number of readers) are doing very well, They are moved from forest to forest every month, and they have greatly helped in improving the health of our forests.   We have been able to better identify the trees that need to be removed, and also to clean up the forest from old abandoned structures and rubbish pits.   In terms of pork production, it is only now ramping up, several sows are pregnant, and we are talking to a Spanish specialist on how to protect the new piglets.  It seems that we will segregate the pregnant sows into different forests. 

As I mentioned our processing businesses are doing very well, and five of the six are operating at capacity.  Our partners are happy with the current revenue levels and neither they or us want to increase capital expenditure to get to the next level.   The sixth business, the newest, is still only at 50% capacity, but will probably reach its peak in 18 to 24 months -- according to my wife.  

We have concluded that we are happy with the current revenue level.   We may change our minds in the future, but for now, its good.  Tweaking rather than massive growth.

Note:   Dealing with the local council.   I need to be clear, The wet land (not the "wetland") has been in its current shape for many decades.   The 2023 and 2024 rain levels made it a more permanent water feature unaided by man (us) our proposal (really our ecologist with our support) was to make the "wetland" more permanent by building a retaining dam.   We were not creating something out of nothing, we were helping nature to make it more permanent to encourage biodiversity.   It is not a water feature near the house, in fact it is rather far from the house and not visible at all.   Right now the water level is about 4 to 6 inches and the plants are dying off.   We would have retained more water.   anyway, it's a moot point as the council discovered, but I still get button-holed every time we go to the village.

 

 

Comments

Post a Comment

Popular posts from this blog

Ok so I lied...a little (revised)

When we began looking at farming in 2013/14 as something we both wanted to do as a "second career" we invested time and money to understand what sector of farming was profitable.  A few things emerged, First, high-quality, source-proven, organic farm products consistently have much higher profit margins.  Secondly, transformation accounted for nearly 80% of total profits, and production and distribution accounted for 20% of profits: Farmers and retailers have low profit margins and the middle bits make all the money. A profitable farm operation needs to be involved in the transformation of its produce.  The low-hanging fruits: cheese and butter.  Milk, generates a profit margin of 5% to 8%, depending on milk quality.  Transformed into cheese and butter, and the profit margin rises to 40% (Taking into account all costs).  Second:  20% of a steer carcass is ground beef quality.  The price is low, because (a) a high percentage of the carcass, and (b) ground beef requires process
Post a Comment
Read more

Spray painting Taylor Swift G650 aircraft (updated)

 First, a bit of paint will not harm anyone.  These climate activities are going to learn two things in the next few days:  (1) Trespassing at an airport is a felony almost anywhere in the world.  That means criminal prosecution.   (2) removing paint from an aircraft is expensive.   So these climate activists are about to find out the reach of the British criminal system and it will not be pleasant, the UK has very strict laws about that, I would be surprised if cleaning the aircraft of all the paint will cost less than $100,000.     I am sure that when they planned (premeditation) this little show they had a very valid logic to doing this.  Tonight, they are probably realizing the depth of their troubles.   I understand that in the UK it's a minimum one-year jail sentence.    Also, good luck travelling with a criminal trespass charge against you.  I am relatively certain that the airline industry will slap them with no-fly status. Update;  It seems that what they threw on the airc
Post a Comment
Read more

21st century milk parlour

When we first looked at building our farm in 2018, we made a few money-saving decisions, the most important is that we purchased our milk herd from a retiring farmer and we also purchased his milking parlour equipment.  It was the right decision at the time.  The equipment dates from around 2004/05 and was perfectly serviceable, our installers replaced some tubing but otherwise, the milking parlour was in good shape.  It is a mature technology. Now, we are building a brand new milk parlour because our milking cows are moving from the old farm to the new farm.  So we are looking at brand new equipment this time because, after 20 years of daily service, the old cattle parlour's systems need to be replaced.  Fear not it will not be destroyed instead good chunks will end up on Facebook's marketplace and be sold to other farmers for spare parts or expansion of their current systems. All our cattle are chipped, nothing unusual there, we have sensors throughout the farm, and our milki
Post a Comment
Read more