Profitability of Tasmanian beef enterprises:
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1 Profitability of Tasmanian beef enterprises: Calving dates and stocking rates for weaner and yearling production systems Libby Salmon, David Counsell and Tim Rhodes
2 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, 24
3 More income, same costs Meat production (kg/ha) Stocking rate Beef price (c/kg) Type of enterprise, Genetics Time of calving Supplementary feed Pasture production Fertilizer management Animal health (Labour/DSE)
4 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
5 Farm resources weather livestock soil pastures management
6 Putting the farm s resources together Management Depth Water availability Bulk density Fertility $ Profit Risk Sustainability
7 Southern midlands -climate and pasture growth Elevation: 27 m Annual rainfall: 55 mm ( ) Apsley 42 o S
8 Daily temperatures Average monthly temperatures o C Max Min + short days in winter
9 Rainfall variability Percentiles for monthly rainfall Max Best 1% mm Min 5% Worst 1%
10 Gross margin ($/ha) Feed (t/ha) Meat production (kg LW/ha) Green pasture (t DM/ha) Annual rainfall (mm) Climate variability hay Production risk Cocksfoot, annual grass, sub clover Average = 55 mm Average = $248/ha Average = 19 kg LW/ha
11 Pasture supply S. Midlands Cocksfoot - annual grass - sub clover Green pasture (tonnes Dry Matter /ha) Jan Mar May Jul Sep Nov Stocking rate = 5 DSE/ha
12 Variability in pasture supply Green pasture (tonnes Dry Matter /ha) Best 1% of seasons Jan Mar May Jul Sep Nov Worst 1% of seasons
13 Reliability of pasture supply - S. Midlands vs SW Victoria Green pasture (tonnes Dry Matter /ha) Hamilton, VIC Best 1% Worst 1% Jan Mar May Jul Sep Nov Stocking rate = 5 DSE/ha
14 Beef systems tested Self-replacing herd: 55kg Angus cows Weaner & Yearling production 5 stocking rates at 3 winter-spring calving dates Common weaning date (end Mar)
15 Assumptions for weaner system Weaners sold on 1st April (7-9 months) Weaners prices (c/kg LW): < 285 kg < 3 kg Steers Heifers > 3 kg CFA cows 13 c/kg LW
16 Assumptions for yearling system Yearling steers sold on 15th Dec (15-17 months) Cull heifers sold on 1 Mar (18-2 months) Prices: - Steers 22c/kg LW - Heifers 175c/kg LW - CFA cows 13c/kg LW
17 Profit driver: Stocking rate Test 5 stocking rates:.3,.6,.9, 1.2, 1.5 cows/ha Over 25 years ( )
18 Grazing pressure: cows/ha vs DSEs Weaner System Cows/ha (includes repl. heifers) Followers/ha.9 DSEs/ha on 1 Jul 8.5
19 Grazing pressure: cows/ha vs DSEs Cows/ha (includes repl. heifers) Followers/ha Weaner System.9 Yearling System.9.6 yearlings DSEs/ha on 1 Jul
20 Grazing pressure: cows/ha vs DSEs Cows/ha (includes repl. heifers) Followers/ha Weaner System.9 Yearling System.9.6 yearlings DSEs/ha on 1 Jul %
21 Cost: Supplementary feeding Feed to maintain condition above: score 2. -cows score 2.5 -weaners Hay purchased at $15/t (not cut from surplus) Gross margins calculated after cost of feeding
22 Significant feeding needed at calving Percentiles for hay fed to mature cows worst 4 years in 1 half the years kg/head/day best 4 years in 1 Calving 1.2 cows/ha
23 Supplementary feeding depends on stocking rate Annual feed cost averaged over ($/ha/year) 2 1 Yearling systems Weaner systems Calving date Jul Aug Sep cows/ha
24 Key messages - feeding Significant feeding at stocking rates over.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
25 Profit driver: Time of calving
26 3 calving dates tested Green pasture (tonnes Dry Matter /ha) Aug 15 Jul 15 Sep Jan Mar May Jul Sep Nov
27 Time of calving: yearling vs weaner requirements Green pasture (tonnes Dry Matter /ha) t DM/ha Calving date? Pasture quantity Jan Mar May Jul Sep Nov Pasture quality
28 Weaners: heavier sale weights from earlier calving and low stocking rates Weight of weaner steers at sale 35 Average LW (kg) Calving date Jul Aug Sep cows/ha
29 Yearlings: reaching target (4kg) more likely at low stocking rate 9% Probability Probability July calving 58% 27% 1% 8% 6% 4% 2% % Live weight at sale (kg) cows/ha
30 Calving date: little effect on reaching yearling target weight Probability Probability.9 cows/ha 1% 8% 6% 4% 2% % Live weight at sale (kg) Calving date Jul Aug Sep
31 Stocking rate vs Profit (weaners) 4 Average gross margin 3 2 $1/ha Calving date Jul ($/ha) cows/ha
32 Calving date vs Profit (weaners) 4 Average gross margin 3 2 $5/ha Calving date Jul Aug ($/ha) 1 Sep cows/ha
33 More beef from higher stocking rates and from yearling systems 4 Meat kg LW/ha production (kg LW/ha) weaner yearling cows/ha July calving
34 Enterprise vs Profit 4 Yearling systems Average gross margin ($/ha) cows/ha Weaner systems Calving date Jul Aug Sep
35 Enterprise (same stocking rate and calving date) 4 Yearling systems Average gross margin ($/ha) $1/ha cows/ha Weaner systems Calving date Jul Aug Sep
36 Enterprise (stocking rate and calving optimised) 4 $45/ha Yearling systems Average gross margin ($/ha) Weaner systems cows/ha Calving date Jul Aug Sep
37 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)
38 What has the greatest effect on Profit? Boost to gross margin: 1. Stocking rate 12-18% 2. Enterprise 15-3% 3. Calving date -15%
39 Stocking rate, profit & risk What are the downside risks for each system? What are the opportunities?
40 GM ($/ha) Risk = year-to-year variation Rank gross margins from 25 years 8 8 Weaners - July calving Weaners- July calving 6 6 Best year Gross Margins ($/ha) Middle value (median) Worst year Stocking rate (cows/ha) Stocking rate (cows/ha)
41 GM ($/ha) Rank gross margins from 25 years 8 8 Weaners - July calving Weaners- July calving 6 6 Gross Margins ($/ha) Middle 5% years Stocking rate (cows/ha) Stocking rate (cows/ha)
42 GM ($/ha) Rank gross margins from 25 years 8 8 Weaners - July calving Weaners- July calving Gross Margins ($/ha) Best 25% of years Middle 5% years Worst 25% of years Stocking rate (cows/ha) Stocking rate (cows/ha)
43 GM ($/ha) Stocking rate and risk 8 8 Weaners - July calving Weaners- July calving 6 6 Gross Margins ($/ha) Stocking rate (cows/ha) Stocking rate (cows/ha)
44 GM ($/ha) Yearlings: more variable Weaners - July calving Weaners- July calving Yearlings - July calving Yearlings- July calving Gross Margins ($/ha) Stocking rate (cows/ha) Stocking rate (cows/ha) Stocking rate (cows/ha)
45 GM ($/ha) Yearlings: more upside opportunity Weaners - July calving Weaners- July calving Yearlings - July calving Yearlings- July calving Gross Margins ($/ha) Stocking rate (cows/ha) Stocking rate (cows/ha) Stocking rate (cows/ha)
46 GM ($/ha) Yearlings: similar downside risk Weaners - July calving Weaners- July calving Yearlings - July calving Yearlings- July calving Gross Margins ($/ha) Stocking rate (cows/ha) Stocking rate (cows/ha) Stocking rate (cows/ha)
47 GM ($/ha) Picking the best long-term stocking rate Weaners - July calving Weaners- July calving Yearlings - July calving Yearlings- July calving Gross Margins ($/ha) Stocking rate (cows/ha) Stocking rate (cows/ha) Stocking rate (cows/ha)
48 Yearlings: calving date so what?! Yearlings - July calving Yearlings- July calving Yearlings - Sep calving Yearlings-September calving 8 6 Gross Margins ($/ha) Stocking rate (cows/ha) Stocking rate (cows/ha) Stocking rate (cows/ha)
49 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
50 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?
51 Profit-drivers in southern beef systems 1. Stocking rate 2. Enterprise type (not calving date) Keep focused: similar drivers, different targets
52 What did GrassGro show? A way to explore options Your grazing system s potential Profit Production risks Targeted information to support decisions
53
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