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Key Performance Indicators as Predictors of Enterprise Gross Margin in English and Welsh Suckler Beef and Sheep Farms

Author

Listed:
  • Nia Lloyd

    (Department of Life Sciences, Aberystwyth University, Aberystwyth SY23 3DA, UK)

  • Manod Williams

    (Department of Life Sciences, Aberystwyth University, Aberystwyth SY23 3DA, UK)

  • Hefin Wyn Williams

    (Department of Life Sciences, Aberystwyth University, Aberystwyth SY23 3DA, UK)

Abstract

A large proportion of the lowest annual farm profits in the United Kingdom in recent years comes from lowland and Less Favoured Area (LFA) beef and sheep farms. Benchmarking the performance of a business through routine data collection can provide the information needed to make changes to enterprise management and performance. Key performance indicators (KPIs) are globally recognised measures that can provide farmers with this capability. However, it is largely unknown if there are specific KPIs relating to livestock production that have a significant effect on financial performance. The aim of this study was to determine whether KPIs could be used as predictors of financial performance (gross margin, GM), on suckler beef and sheep farms in England and Wales. This was completed using data from the Farm Business Survey (FBS), which is the largest stratified financial survey of its kind in the UK. Following data extraction, multiple linear regression models were developed for four enterprise types: LFA suckler beef, lowland suckler beef, LFA ewe and lowland ewe. Several KPIs were significantly associated with gross margin per head in all enterprise types. KPIs that were positively associated with GM were measures of livestock productivity, which were lambs per breeding stock and calves per cow. The increased expenditure on concentrate feed had a significantly negative association within all enterprise types, except for LFA suckler beef enterprises, where cow mortality had the greatest significantly negative association. This is the first study to demonstrate the influence livestock production KPIs have on the financial performance of suckler beef and sheep enterprises in both England and Wales, highlighting the importance of routine data collection and benchmarking.

Suggested Citation

  • Nia Lloyd & Manod Williams & Hefin Wyn Williams, 2025. "Key Performance Indicators as Predictors of Enterprise Gross Margin in English and Welsh Suckler Beef and Sheep Farms," Agriculture, MDPI, vol. 15(3), pages 1-10, January.
    • Handle: RePEc:gam:jagris:v:15:y:2025:i:3:p:249-:d:1575843
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    References listed on IDEAS

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    1. Alejandra Gonzalez-Mejia & David Styles & Paul Wilson & James Gibbons, 2018. "Metrics and methods for characterizing dairy farm intensification using farm survey data," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-18, May.
    2. Deblitz, Claus, 2010. "agri benchmark: Benchmarking Beef Farming Systems Worldwide," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59096, Australian Agricultural and Resource Economics Society.
    3. Jones, A.K. & Jones, D.L. & Cross, P., 2014. "The carbon footprint of lamb: Sources of variation and opportunities for mitigation," Agricultural Systems, Elsevier, vol. 123(C), pages 97-107.
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