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One Northumberland sheep producer is showing that a clear focus on grassland management and picking a breed that can thrive off grass can help make a business more sustainable. Jeremy Hunt reports

Relying totally on grass and forage and eliminating bought-in feeds is the crux of running a profitable sheep production system, according to Northumberland sheep producer Duncan Nellis.

Back in the 1990s the family was running about 850 Mule ewes at their Thistlehaugh Farm, near Morpeth, but even in years when prime lamb prices were considered to be good, the amount of cash having to be re-invested every year in flock replacements was a major drain on income. It triggered a re-think.

We wanted to take hold of our own sheep breeding objectives. As well as wanting to eliminate the cost of bought replacements, it was clear health issues were becoming more important and we didnt want to always be at the risk of buying-in other peoples problems, says Mr Nellis, Farmers Weeklys Sheep Farmer of the Year finalist 2012.

Getting lamb growth and profit

Now Mr Nellis runs a flock of 1,600 Lleyns that last year earned him a gross margin a ewe of 94.

The bottom 25% of the flock is crossed with Hampshire Down and Charollais tups, but the remainder stays pure. The first lambs to go are those by the Hampshire Down and this year there was a batch that gained an average 360g a day and were finished by 62 days. The average finishing time is 73 days, with lambs sold deadweight at a target weight of about 19kg.

To get this level of lamb growth out of a bag wouldnt be possible without some serious issues, says Mr Nellis. We dont have any pregnancy toxaemia problems and we believe its because we dont feed any concentrates.

Our system is designed to secure our future as sheep producers because were not at the mercy of the grain market or the fertiliser market and we dont have to spend income on replacements.

We want to be profitable, but we do not want to rely on the SFP to do that. We certainly feel more in control of the business and even though lambs were 13 a head back last year compared with 2011, I think well still be OK. It wasnt a disaster for us.

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