Profitability of Tasmanian beef enterprises: Calving dates and - - PowerPoint PPT Presentation

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Profitability of Tasmanian beef enterprises: Calving dates and - - PowerPoint PPT Presentation

Jan 14, 2023 33 likes •570 views

Profitability of Tasmanian beef enterprises: Calving dates and stocking rates for weaner and yearling production systems Libby Salmon, David Counsell and Tim Rhodes Grassland Society of Southern Australia Inc How can I make more from beef?

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Grassland Society of Southern Australia Inc

Profitability of Tasmanian beef enterprises:

Libby Salmon, David Counsell and Tim Rhodes

Calving dates and stocking rates for weaner and yearling production systems

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Grassland Society of Southern Australia Inc

How can I make more from beef?

“Profitable grazing businesses generate more income for roughly the same costs as less profitable farms”

Holmes, Sackett and Associates, 2004

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Grassland Society of Southern Australia Inc

More income, same costs

Meat production (kg/ha) Beef price (c/kg) Stocking rate Type of enterprise, Genetics Supplementary feed

  • Pasture production
  • Fertilizer management

Animal health Time of calving (Labour/DSE)

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Grassland Society of Southern Australia Inc

Key questions for beef production systems in midlands TAS

What are the most profitable and sustainable:

  • 1. stocking rates?
  • 2. enterprises?
  • 3. calving dates?
  • 4. levels of supplementary feeding?

Specific for farm, over a range of seasons

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Farm resources

weather pastures soil livestock management

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Grassland Society of Southern Australia IncGrassland Society of Southern Australia Inc

Putting the farm’s resources together

Management

$ Profit Risk Sustainability

  • Depth
  • Water availability
  • Bulk density
  • Fertility
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Grassland Society of Southern Australia Inc

Southern midlands

  • climate and pasture growth

Apsley

42oS Annual rainfall: 550 mm

(1979-2004)

Elevation: 270 m

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Daily temperatures

  • C

Max Min

Average monthly temperatures

+ short days in winter

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Rainfall variability

Max Min

Percentiles for monthly rainfall

mm

Best 10% Worst 10% 50%

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0.25 0.5 0.75 1 1.25 1.5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

100 200 300 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

  • 50

50 100 150 200 250 300 350 400 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

100 200 300 400 500 600 700 800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

1980 1995 2000 1990 1985 Annual rainfall (mm) Green pasture (t DM/ha) Meat production (kg LW/ha) Gross margin ($/ha) Feed (t/ha)

200 400 600 800 200 400 100 200 300 1.0 1.5 0.5 2 4 6 8

Climate variability

Production risk

Cocksfoot, annual grass, sub clover Average = $248/ha

hay

Average = 190 kg LW/ha Average = 550 mm

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Grassland Society of Southern Australia Inc

1000 2000 3000 4000 5000 6000 7000 8000

Jan Mar May Jul Sep Nov

Pasture supply – S. Midlands

1000 2000 3000 4000 5000 6000 7000 8000

Jan Mar May Jul Sep Nov

2 4 6 8 Green pasture (tonnes Dry Matter /ha) Stocking rate = 5 DSE/ha Cocksfoot - annual grass - sub clover

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1000 2000 3000 4000 5000 6000 7000 8000

Jan Mar May Jul Sep Nov

Variability in pasture supply

Green pasture (tonnes Dry Matter /ha) 2 4 6 8

Best 10% of seasons Worst 10% of seasons

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1000 2000 3000 4000 5000 6000 7000 8000

Jan Mar May Jul Sep Nov

Reliability of pasture supply

  • S. Midlands vs SW Victoria

Hamilton, VIC

Green pasture (tonnes Dry Matter /ha) 2 4 6 8 Best 10% Worst 10% Stocking rate = 5 DSE/ha

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Grassland Society of Southern Australia Inc

Beef systems tested

  • Self-replacing herd: 550kg Angus cows

– Weaner & Yearling production – 5 stocking rates at 3 winter-spring calving dates

  • Common weaning date (end Mar)
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Grassland Society of Southern Australia Inc

  • Weaners sold on 1st April (7-9 months)

Assumptions for weaner system

185 200 215 Heifers 230 250 270 Steers

> 300 kg < 300 kg < 285 kg Weaners prices (c/kg LW):

  • CFA cows 130 c/kg LW
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  • Yearling steers sold on 15th Dec (15-17 months)
  • Cull heifers sold on 1 Mar (18-20 months)
  • Prices:
  • Steers 220c/kg LW
  • Heifers 175c/kg LW
  • CFA cows 130c/kg LW

Assumptions for yearling system

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Profit driver: Stocking rate

Test 5 stocking rates:

0.3, 0.6, 0.9, 1.2, 1.5 cows/ha

Over 25 years (1979-2004)

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Grazing pressure: cows/ha vs DSEs

Followers/ha

Weaner System

8.5 DSEs/ha on 1 Jul

0.9

Cows/ha (includes repl. heifers)

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Grassland Society of Southern Australia Inc

0.6 yearlings Followers/ha

Yearling System Weaner System

12.7 8.5 DSEs/ha on 1 Jul

0.9 0.9

Cows/ha (includes repl. heifers)

Grazing pressure: cows/ha vs DSEs

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Grassland Society of Southern Australia Inc

0.6 yearlings Followers/ha

Yearling System Weaner System

12.7 8.5 DSEs/ha on 1 Jul

0.9 0.9

Cows/ha (includes repl. heifers)

+50%

Grazing pressure: cows/ha vs DSEs

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Cost: Supplementary feeding

Feed to maintain condition above:

  • score 2.0 -cows
  • score 2.5 -weaners

Hay purchased at $150/t (not cut from surplus) Gross margins calculated after cost of feeding

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Significant feeding needed at calving

kg/head/day

1.2 cows/ha

Percentiles for hay fed to mature cows

worst 4 years in 10 half the years best 4 years in 10

Calving

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100 200 0.3 0.6 0.9 1.2 1.5 1.8

Supplementary feeding depends on stocking rate

Annual feed cost

averaged

  • ver

1979-2004

Jul Aug Sep Calving date

Yearling systems Weaner systems cows/ha ($/ha/year)

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Grassland Society of Southern Australia Inc

Key messages - feeding

  • Significant feeding– at stocking rates over 0.6

cows/ha

  • Yearling systems - more feeding than weaners
  • Weaner systems carry less animals through winter
  • In most years, yearlings also fed over winter to

maintain weight

  • Earlier calving = more feeding
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Profit driver: Time of calving

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1000 2000 3000 4000 5000 6000 7000 8000

Jan Mar May Jul Sep Nov

Green pasture (tonnes Dry Matter /ha) 2 4 6 8

3 calving dates tested

15 Sep 15 Aug 15 Jul

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Time of calving: yearling vs weaner requirements

1000 2000 3000 4000 5000 6000 7000 8000

Jan Mar May Jul Sep Nov

Green pasture (tonnes Dry Matter /ha) 2 4 6 8

Calving date? Pasture quality Pasture quantity

0.75 t DM/ha

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Weaners: heavier sale weights from earlier calving and low stocking rates

150 200 250 300 350 0.3 0.6 0.9 1.2 1.5 1.8

Weight of weaner steers at sale

Jul Aug Sep Calving date

cows/ha Average LW (kg)

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0% 20% 40% 60% 80% 100% 200 300 400 500 600 Live weight at sale (kg) Probability

0.3 0.9 1.5

Yearlings: reaching target (400kg) more likely at low stocking rate

cows/ha

27% 58% 90% Probability

July calving

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0% 20% 40% 60% 80% 100% 200 300 400 500 600 Live weight at sale (kg) Probability

Jul Aug Sep

Calving date: little effect on reaching yearling target weight

Calving date

Probability

0.9 cows/ha

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100 200 300 400 0.3 0.6 0.9 1.2 1.5 1.8

Stocking rate vs Profit (weaners)

Average gross margin

Jul Calving date

cows/ha ($/ha)

$100/ha

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100 200 300 400 0.3 0.6 0.9 1.2 1.5 1.8

Calving date vs Profit (weaners)

Average gross margin

Jul Aug Sep Calving date

cows/ha ($/ha)

$50/ha

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More beef from higher stocking rates and from yearling systems

July calving

100 200 300 400 0.3 0.6 0.9 1.2 1.5 cows/ha

kg LW/ha

weaner yearling

Meat production (kg LW/ha)

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Enterprise vs Profit

100 200 300 400 0.3 0.6 0.9 1.2 1.5 1.8

Average gross margin

Jul Aug Sep Calving date

Yearling systems Weaner systems cows/ha ($/ha)

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Enterprise (same stocking rate and calving date)

100 200 300 400 0.3 0.6 0.9 1.2 1.5 1.8

Average gross margin

Jul Aug Sep Calving date

Yearling systems Weaner systems cows/ha ($/ha)

$100/ha

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100 200 300 400 0.3 0.6 0.9 1.2 1.5 1.8

Average gross margin

Jul Aug Sep Calving date

Yearling systems Weaner systems cows/ha ($/ha)

Enterprise (stocking rate and calving optimised) $45/ha

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Grassland Society of Southern Australia Inc

Key messages Calving dates & Profit

Weaner system (April sales):

– later calving less profitable

Yearling system:

– calving dates had little effect on profit – (total amount of supplement high for all dates)

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What has the greatest effect on Profit?

  • 1. Stocking rate
  • 3. Calving date
  • 2. Enterprise

Boost to gross margin: 120-180% 15-30% 0-15%

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Stocking rate, profit & risk

– What are the downside risks for each system? – What are the opportunities?

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Risk = year-to-year variation Rank gross margins from 25 years

W eaners- July calving

  • 200

600 1.5000 200 1.2000 0.9000 0.6000 0.3000 800

Stock ing rate (cows/ha)

400

GM ($/ha)

  • 200

200 400 600 800 Weaners - July calving 0.3 0.6 0.9 1.2 1.5

Gross Margins

1979-2004 ($/ha)

Middle value (median)

Stocking rate (cows/ha)

Best year Worst year

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W eaners- July calving

  • 200

600 1.5000 200 1.2000 0.9000 0.6000 0.3000 800

Stock ing rate (cows/ha)

400

GM ($/ha)

  • 200

200 400 600 800 Weaners - July calving 0.3 0.6 0.9 1.2 1.5

Gross Margins

1979-2004 ($/ha)

Middle 50% years

Stocking rate (cows/ha)

Rank gross margins from 25 years

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W eaners- July calving

  • 200

600 1.5000 200 1.2000 0.9000 0.6000 0.3000 800

Stock ing rate (cows/ha)

400

GM ($/ha)

  • 200

200 400 600 800 Weaners - July calving 0.3 0.6 0.9 1.2 1.5

Gross Margins

1979-2004 ($/ha)

Middle 50% years

Stocking rate (cows/ha)

Best 25% of years Worst 25% of years

Rank gross margins from 25 years

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Stocking rate and risk

W eaners- July calving

  • 200

600 1.5000 200 1.2000 0.9000 0.6000 0.3000 800

Stock ing rate (cows/ha)

400

GM ($/ha)

  • 200

200 400 600 800 Weaners - July calving 0.3 0.6 0.9 1.2 1.5

Gross Margins

1979-2004 ($/ha)

Stocking rate (cows/ha)

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Yearlings

  • July calving

1.5000 1.2000 0.9000 0.6000 0.3000

Stock ing rate (cows/ha)

Yearlings: more variable

Stocking rate (cows/ha)

W eaners- July calving

  • 200

600 1.5000 200 1.2000 0.9000 0.6000 0.3000 800

Stock ing rate (cows/ha)

400

GM ($/ha)

  • 200

200 400 600 800 Weaners - July calving 0.3 0.6 0.9 1.2 1.5 Yearlings - July calving 0.3 0.6 0.9 1.2 1.5

Gross Margins

1979-2004 ($/ha)

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Yearlings

  • July calving

1.5000 1.2000 0.9000 0.6000 0.3000

Stock ing rate (cows/ha)

Yearlings: more upside opportunity

Stocking rate (cows/ha)

W eaners- July calving

  • 200

600 1.5000 200 1.2000 0.9000 0.6000 0.3000 800

Stock ing rate (cows/ha)

400

GM ($/ha)

  • 200

200 400 600 800 Weaners - July calving 0.3 0.6 0.9 1.2 1.5 Yearlings - July calving 0.3 0.6 0.9 1.2 1.5

Gross Margins

1979-2004 ($/ha)

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Yearlings

  • July calving

1.5000 1.2000 0.9000 0.6000 0.3000

Stock ing rate (cows/ha)

Yearlings: similar downside risk

Stocking rate (cows/ha)

W eaners- July calving

  • 200

600 1.5000 200 1.2000 0.9000 0.6000 0.3000 800

Stock ing rate (cows/ha)

400

GM ($/ha)

  • 200

200 400 600 800 Weaners - July calving 0.3 0.6 0.9 1.2 1.5 Yearlings - July calving 0.3 0.6 0.9 1.2 1.5

Gross Margins

1979-2004 ($/ha)

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Yearlings

  • July calving

1.5000 1.2000 0.9000 0.6000 0.3000

Stock ing rate (cows/ha)

Picking the best long-term stocking rate

Stocking rate (cows/ha)

W eaners- July calving

  • 200

600 1.5000 200 1.2000 0.9000 0.6000 0.3000 800

Stock ing rate (cows/ha)

400

GM ($/ha)

  • 200

200 400 600 800 Weaners - July calving 0.3 0.6 0.9

1.2 1.5

Yearlings - July calving 0.3 0.6

0.9

1.2 1.5

Gross Margins

1979-2004 ($/ha)

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Yearlings

  • September calving

1.5000 1.2000 0.9000 0.6000 0.3000

Stock ing rate (cows/ha) Yearlings

  • July calving

1.5000 1.2000 0.9000 0.6000 0.3000

Stock ing rate (cows/ha)

Yearlings: calving date –so what?!

Stocking rate (cows/ha)

  • 200

200 400 600 800 Yearlings - July calving 0.3 0.6 0.9 1.2 1.5 Yearlings - Sep calving 0.3 0.6 0.9 1.2 1.5

Gross Margins

1979-2004 ($/ha)

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Grassland Society of Southern Australia Inc

Stocking rates and risk

Yearlings:

  • more up side opportunity

(more beef/ha) Both:

  • similar down side risk at

moderate stocking rates

  • greater down side risk at

higher stocking rates

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Grassland Society of Southern Australia Inc

Opportunities for other GrassGro studies

  • Are bigger cows more profitable?
  • How would a later or early calving affect risk?
  • Is it cost effective to feed steers over winter

to reach higher target weights?

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Profit-drivers in southern beef systems

  • 1. Stocking rate
  • 2. Enterprise type

(not calving date)

Keep focused: similar drivers, different targets

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What did GrassGro show?

Targeted information to support decisions

  • Your grazing system’s potential
  • A way to explore options
  • Profit
  • Production risks
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Grassland Society of Southern Australia Inc