The Farmers Mart Aug-Sep 2018 - Issue 58 | Page 4

4 EDITOR ’ S INTRO
ISSUE 58 • AUG / SEP 2018
4 EDITOR ’ S INTRO
It ’ s been a tough year for many in the farming community simply because of the adverse weather we ’ ve had since Christmas 2017 . At the beginning of the year , saw snow and ice , followed by down pours and now for the last few weeks an extreme hot spell , that many people have compared to the summer of 76 . The worrying part of that comparison is that in 76 , the winter that followed the summer was horrendous , and one of the harshest on record .
WHILST the hot weather has been great for companies operating within the tourism industry , its been rather troublesome for the agricultural sector . Many farmers are already breaking into food and forage resources , which will have a greater impact over the next few months , especially if we see another harsh winter , and let ’ s hope it ’ s not as severe as the ‘ 76 winter .
Yet , it ’ s not just been livestock farmers who are suffering as a direct result of the weather . Arable farms are also under a lot of strain , especially those growing oilseeds and grain crops , which are suffering from lower yields due to low moisture content .
Though the one major issue of the hot weather that ’ s affected many in rural communities including the farming sector has been the wildfires . All across the UK and Europe there have been devastating fires that have destroyed crops and wild life , some have been as a direct result of the weather whilst many have been started deliberately . The fires have spread out of control because of how dry the landscape is causing a colossal amount of damage in their wake . The situation became so bad that the army were called in to assist fire fighters extinguish many of the outbreaks . One such fire in Greece killed over 50 people . Experts are warning we could see a lot more of these adverse weather spells in the future as the climate changes .
On top of all the problems due to adverse weather conditions there seems to be even greater uncertainty surrounding Brexit as many are now suggesting that a ‘ No Deal ’ scenario is highly likely . This could lead to supply lines to and from Europe being disrupted along with several other issues that could potentially affect the farming and rural communities around the country .
Editor , Jason
AUG / SEP 2018 • farmers-mart . co . uk

Veterinary Practices – the rich get richer and the poor get poorer

RESEARCH undertaken by Plimsoll Publishing into the UK ’ s top 1000 veterinary practices has revealed that one in four is making a loss , suggesting that the sector is likely to experience significant consolidation as businesses are either taken over or closed .
Nationally , over 60 % of veterinary firms with a turnover of less than £ 5 million have reported losses . Average margins across all loss-making practices have fallen from . 03 % to -2.9 % in the last year .
But , it is not all doom and gloom . Whilst sales across the industry are flat , the 814 best performing businesses have seen margins increase from 2.7 % to 3.8 %.
Analysis by the team at Plimsoll Publishing reveals that average sales per employee have decreased to just £ 61,000 over the last year . Declining sales per person ,
Breakdown of veterinary firms by size
and the % of firms reporting a loss
Sales
Firms
% Loss Makers
Less £ 1 Million
363
26 %
£ 1 to £ 3 Million
441
21 %
£ 3 to £ 5 Million
120
14 %
£ 5 to £ 10 Million
85
18 %
£ 10 to £ 30 Million
23
17 %
£ 30 to £ 50 Million
3
33 %
Over £ 50 Million
3
0 %
Total
1038
22 %
set against a backdrop of increased profits within the sector , would suggest that performing veterinary firms are finding profit from increased margins and cost cutting rather than sales .
www . plimsoll . co . uk
Margin trends in the veterinary sector

‘ over 60 % of veterinary firms

with a turnover of less than £ 5 million have reported losses ’

Type
Number of Firms
Margin Last Year
Margin This Year
Loss Makers
224
0.3 %
-2.9%
Rest of Industry
814
2.7 %
3.8 %
Industry Average
1038
3.1 %
2.9 %
ISSUE 58 • AUG / SEP 2018
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