Beef farmers in the UK should get big rather than organic if they wish to raise profitability, and exploit the promise offered by large retail and export markets, a leading land agency has said.

Turning organic "is no longer enough to command a significant premium" in beef, Savills said, noting the ease at which farms can switch into low-intensity techniques from conventional rearing methods.

"Prices go up and down as much as for conventional beef. Output is lower. Margins are lower," Ian Bailey, Savills' head of rural research told Agrimoney.com.

"And as recent events have shown, when times are tough, some consumer ethics go out of the window."

'Big opportunity' 

The answer to raising beef profits was to generate sufficient scale to meet the quantity, and quality, demands of supermarkets which, in the case of Sainsbury's, required the equivalent of about 2,500-3,500 head of cattle a week.

Large-scale production is "essential" to achieving premium prices, the report said.

Mr Bailey added: "Supermarkets are giving a premium for consistent quality.  What they want are consistent supply, weight, fat [patterns].

"Get that right, and there is a big opportunity to improve your performance."

'Rise in exports'

Exports represent another potentially lucrative market, with foreign shipments still running at roughly half levels before BSE outbreaks heralded stringent trade restrictions.

"Recovery in UK consumption has now regained pre-BSE levels, and with the relaxation of beef controls, a rise in exports is likely to occur," the briefing said.

Currently, nearly half of half of UK cattle are kept in herds of 50 or less, leaving little scope for profits.

"Even where the calves are also finished, our research indicates a gross margin for a 50-strong herd of only £2,000-7,000 before subsidy and fixed costs," Savills said.