PRODUCERS were advised that they should know their exact costs of production.

John Vipond, senior sheep specialist with the Scottish Agricultural College, said they should plan production to meet market specifications, and should work around their farm resources and not put their efforts into poorly-rewarded areas, such as extremes of conformation, if it would not suit their farm.

Mr Vipond, originally from Weardale, said feed blocks were expensive; there were other feeds which were just as good but cheaper. Feed prices had risen and compound feeds would do so over the next three months.

Farmers should buy on quality, not on price, and compounds with a high degree of filler material should be avoided.

On lost lamb production, he said 46pc of that loss was due to barren ewes; 19pc lambs to dying young; 15pc were stillborn; 13pc aborted; and 7pc mummified.

There had been a steady increase in liver fluke since 1995, with eggs appearing where they had never been seen before; and a huge problem with anthelmintic resistance.

He agreed the picture was bright for the sheep sector, but producers should control fixed costs and meet the market specifications.