The profitability of increasing efficiency in the herd Brian Cumming. bcagriculture.com.au
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1 The profitability of increasing efficiency in the herd Brian Cumming
2 Efficiency production with minimum waste or effort (Australian Concise Oxford Dictionary)
3 Impact of beef CRC technologies on the efficiency of beef production Professor Heather Burrow, CEO Beef CRC Drench resistance Dr Steve Love (NSW DPI) E.Coli shedding in beef cattle Dr Jane Heller (CSU) HGP use in beef steers Ms Emma Whittaker and Ms Ness Buchholz Milking your feedbase for all its worth Mr Michael Campbell (PhD student, CSU) Reducing methane output in beef cattle Dr Kath Donoghue (NSW DPI) Breeding for Nett Feed Efficiency Mr Jon Wright (Cootamundra Park Bluees) Successful pasture establishment in a cropping rotation Mr Geoff Casburn and Mr Richard Hayes (NSW DPI)
4 Impact of beef CRC technologies on the efficiency of beef production Professor Heather Burrow, CEO Beef CRC Drench resistance Dr Steve Love (NSW DPI) E.Coli shedding in beef cattle Dr Jane Heller (CSU) HGP use in beef steers Ms Emma Whittaker and Ms Ness Buchholz Milking your feedbase for all its worth Mr Michael Campbell (PhD student, CSU) Reducing methane output in beef cattle Dr Kath Donoghue (NSW DPI) Breeding for Nett Feed Efficiency Mr Jon Wright (Cootamundra Park Bluees) Successful pasture establishment in a cropping rotation Mr Geoff Casburn and Mr Richard Hayes (NSW DPI)
5 35 ways to lift efficiency of a beef herd
6 78 ways to lift efficiency of a beef herd Hybrid vigour, breed complementarity, grazing management, perennial pastures, soil phosphorus levels, pasture legume content, matching stocking rate to feed, high energy fodder conservation, mature cow weight EBVs, cow size relative to environment, high weaning weight per kilogram cow weight, cow maturity pattern, NFI, genomic enhanced EBVs, direct marketing, targeted mineral supplementation, minimum deaths, appropriate vaccination programs, protein supplementing on low energy dry pastures, using summer rain through appropriate summer pastures or crops, European sires to lift growth rate and muscle, carcase feedback, minimal silage losses during storage, using hay feeders to reduce wastage, minimal selling costs, highly fertile bulls, mating potential of bulls, joining percentage, correct targeted calving distribution, pregnancy testing, selling empty females, high compliance to target market specifications, pasture improvement, pre-joining bull inspections, using selection indices for target markets, moderate bull costs without compromising genetic potential, breeds with large gene pool, markets and bull breeders within 2 hours, well designed cattle yards, ground cover to utilise rainfall, Hormonal Growth Promotants, soil testing and targeted fertilizer use and placement, bull serving ability, destocking plans for dry seasons, develop annual health plans, appropriate intervention in calving problems, meeting heifer target joining weights and fat score, short joining periods cows and heifers, matching calving period to environment, markets and management, calving heifers as two year olds, joining most heifers and selecting on conception, drought plan, clean stock drinking water, providing shade, technical forums or discussion groups, accurate rotational grazing, maintain minimum herbage mass, yearling bulls, yard weaning, maximise photosynthesis using leaf area targets, winter clean pastures to achieve optimum perennial grass / clover mix, using accurate weather forecasts, debt management, MSA accredited, bloat capsules to graze high legume pastures, salt/lime loose licks for winter grazing, protein supplements costed per % protein, monitor cost of production, allow seed set of annual clovers, matching stocking rate to carrying capacity, training weaners to the yards, calculated risk assessment, improved pasture and improved genetics, continually monitor stock condition - make decisions around it, a product that suits many markets, cash reserves, high growth rates.
7 Modelled typical NSW South West Slopes beef herd (gross margins analysis software) program
8 Spring calving herd supplying British breed feeder steers to the local feedlot market. Feeder steers 400 and 500 kilograms live weight moderate maturity, FS 1-2 maturity pattern to handle 100 to 150 days feeding By improving efficiency through the four areas listed it is expected that the herd will be more profitable, as measured by gross margins
9 Cattle Grazing area Weaning Fertility Replacement 600 Angus cows, calving in August and September 400 ha improved perennials and 600 ha native pasture March / April 85% weaning rate averaged across all breeding female ages Own heifers bred to calve at two years of age Sales Steers and excess heifers 16 to 18 months of age, cull cows 10 years Bulls Selling cost Efficiencies to be modelled Gross Margins 2 per 100 cows, purchase price $5000 per bull Direct sale to feedlot, transport is the biggest cost 1. Drenching young cattle, 2. Using HGPs, 3. Grazing a summer forage crop, 4. Using bulls of greater genetic Net Feed Intake (NFI) $514 per cow and $308 per hectare on original herd not using the above efficiencies
10 Monthly pasture growth rates (kg/ha DM), and a carryover of unused feed into the following month. feed base kept constant - herd size recalculated for each option.
11 Drenching (cattle under two years old) Increase sale weight by 40kg (over nine months) 5% increase heifers conceiving in the first month (weight + fat score) 5% sale cattle sold one month earlier (addition $0.05/kg) Weaner cattle death rate decreased from 3 to 1 percent Drench costs $7763 p.a.
12 HGPs Used on sale cattle (heifers and steers) 12.5 percent increase in sale weight (same sale time and price) Sale cattle slightly leaner (no price effect) HGP and admin cost included Assumed market accepting of HGP treated cattle
13 Summer forage crop
14
15 Summer forage crop 100 ha native pasture replaced with Brassica Crop available from November through summer Increased weaning weight (increased lactation), increased sale weight Small increase heifer fertility (heifers heavier, sl. fatter) incr. heifer weaning % and earlier conception Cow sale weight sl. heavier
16 Summer forage crop Increased summer feed but less total winter feed June, July, August supplementary feeding (hay at 9 MJ/kg) Crop establishment cost $200 / ha
17 NFI
18
19 NFI Exton et al (2000) 25 years selection 10% increase in cow numbers on the same amount of feed assumes same number sale and replacement numbers Sale and weaning weights constant More cows conceiving later (leaner)
20 NFI $2000 extra purchase cost per bull (NFI data)
21 Results Cow numbers Original Drench HGP Summer crop NFI genetics Weaning % Calving (Aug:Sept) 60:40 65:35 60:40 65:35 58:42
22 Results Steer sales 1 Steer sales 2 Heifer sales 1 Heifer sales 2 Original Drench HGP Summer crop NFI genetics 450 kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $ kg $1.65
23 Results Health costs per head weaned Original Drench HGP Summer crop NFI genetics $4 $20 $9 $4 $4 Fodder costs $15,675 0
24 Results Gross margins $ per cow Gross Margins $ per hectare % increase GM $ per ha. Original Drench HGP Summer crop NFI genetics
25
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