THE key to any profitable business is being able to sell what you produce for more than your production costs. Not an easy option for most farming businesses which typically operate on very narrow profit margins. Michael Bell, of Home Farm Organics, says the main way to tackle this problem is to sell all produce through retail outlets.

For Michael, these include farmer's markets - he attends around ten each month - and his own retail shop and restaurant. The restaurant is run by his son, William, who was the youngest-ever winner of an Organic Food Award, his pork pie recipe famously beating the Tesco and Waitrose big guns!

Home Farm Organics is situated at Nanpanton in Leicestershire, which makes it central to many excellent farmer's markets. It has been organic since 1983.

The farm extends to 270 acres, most of which is grass apart from 40 acres of wheat and oats grown for animal food. "I consider the farm to be a big smallholding," Michael explained, "and farm in much the same way a smallholder would only on a bigger scale. Every animal on the farm is fully traceable from conception to fork."

This holistic approach is reflected in every aspect of Michael's farming activities. The 150-strong herd of traditional Hereford cattle were selected for their hardiness and ability to finish off grass and silage. Except for older cows and very young claves which come inside when the weather is bad, they remain out for most of the year. A feeding area is fenced off and provided with bedding should extra warm be needed and also reduces excessive poaching.

The herd calves all year round with young stock weaned at about 7 months of age. This ensures there is always a plentiful supply of meat for the shop, restaurant and farmer's markets. Animals finish anywhere between 30 and 42 months. This is longer than the continental breeds, but as Michael points out, the expenses are far less as only grass and silage are fed, avoiding the spiralling costs of feeding cereals.

Due to the farm's organic status, an organic certified slaughter house has to be used, which in the case of Home Farm Organics is Ensors of Cinderford. The carcases are well hung before finding their way into the farm's shop and restaurant. Home-made burgers and sausages are made and sold on the premises as well as at farmer's markets.

"It's critical that all your products go direct to the consumer," said Michael. "If you sell wholesale you'll end up giving away most of the profit."

He also warns that a sharp eye needs to be kept on costs, which can soon eat into profits and is one of the reasons why he keeps the old style Herefords. The heavy, rapid-maturing continental breeds need a great deal of supplementary feeding to put on the necessary flesh whereas the Herefords mature at a slower rate on grazing and silage and result is a lean, flavoursome carcase.

In addition to the Herefords, there is also a 70-strong flock of Dorset Down sheep, which lamb during April/May. Apart from a small feed of organic nuts, the flock receives little supplementary feeding and the lambs are left to mature in their own time from the new grass.

As the farm is providing its own retail outlets which need fulfilling all year round, there is no advantage in having a tight lambing season. Lambs are drawn off for slaughter when ready and as needed.

The farm mainly breeds its own replacements, which considerably reduces the risk of disease. Anything that does crop up is treated homoeopathically. Of course no chemical fertilisers are used on the land, just good old fashion farmyard manure. However, Michael is careful to reseed with organically-produced clovers, timothy and chicory mixes, which are natural ways of incorporating extra nitrogen and minerals into the soil.

Cattle news

New booklet available on feeding "rocket fuel" to livestock: Innovative research scientists at the National Institute of Agricultural Botany are evaluating new forage crops to provide "rocket fuel" for livestock. The doubling of wheat prices, once a cheap source of energy to feed livestock, means that producers must consider alternative feed for livestock so they can remain profitable. A new booklet was launched at the recent Grassland event which took place at Stoneleigh Abby advising on this. The booklet, NIAB Descriptive and Recommended Lists, is free and is seen as an important evaluating tool to help decide on the most suited forage crop.

Further information is available from Don Pendergrast on 01223 342348, on from the website at www.niab.com/about.html.

New organic advisory service for farmers: Defra has launched a free national information and advice service for farmers thinking of converting to organic production methods. Plans were approved by the European Commission and funding made available to reintroduce the service.

The new advisory service, which will be delivered by Natural England (NE) on Defra's behalf, will provide conventional farmers with free and impartial information and advice on the principles and mechanics of organic production to help them decide whether conversion is appropriate for their enterprise. It will comprise of a national helpline providing initial advice and a comprehensive information pack, a dedicated website and a free on farm advisory visits service that will supplement the initial advice provided, where appropriate.

For general information about the service, contact: Nick Cooper, OCIS project manager, Natural England, Victoria House, London Square, Cross Lanes, Guildford, Surrey GU1 1UJ; telephone: 01483 307705; email: nick.cooper@naturalengland.org.uk; website: www.naturalengland.org.uk/planning/farming-wildlife/ocis.

Soil Association needs your help: The Soil Association is currently conducting research for the Organic Market Report 2008 and needs the help of producers. If you sell organic produce directly to the public (eg through your own box scheme, farm shop, café, farmer's market, mail order, your own retail shop etc they would like you to complete a questionnaire.

All information supplied will be treated as confidential and will be amalgamated with that of other businesses before being published. All businesses that complete the questionnaire will receive a free copy of the Organic Market Report after it is published. Go to www.soilassociation.org/web/sa/saweb.nsf/farming/index.html.

Organic auction sales: Sedgemoor Auction Centre, just off junction 24 of the M5 at Bridgwater, is now offering the service of regular monthly auction sales for organic store, dairy and youngstock. The first sale was held in May and subsequent sales continue on the first Monday of each month.

Entries have to be prior notified to the market office at least two weeks ahead of the sale day for certification clearance and cataloguing. A copy of a certificate of registration and a trading schedule, detailing the category of stock to be sold, need to accompany the entries. Further information maybe obtained from the market on 01278 410278 or Robert Venner on 07889 006503.

Organic Trust - open days and farm walks: The Organic Trust are organising a series of farm open days and walks for potential organic farmers throughout the summer ending in September.

A wealth of knowledge and information is available from current practitioners at these events and it is suggested that as many open days/farm walks as is possible are attended. The open days/farm walks are available to all current and potential organic producers and attendance is free. A listing of all events can be downloaded from the Organic Trust's website at www.organic-trust.org.