Profitability of Tasmanian beef enterprises: Calving dates and stocking rates for weaner and yearling production systems Libby Salmon, David Counsell and Tim Rhodes
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
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)
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
Farm resources weather livestock soil pastures management
Putting the farm s resources together Management Depth Water availability Bulk density Fertility $ Profit Risk Sustainability
Southern midlands -climate and pasture growth Elevation: 27 m Annual rainfall: 55 mm (1979-24) Apsley 42 o S
Daily temperatures Average monthly temperatures o C Max Min + short days in winter
Rainfall variability Percentiles for monthly rainfall Max Best 1% mm Min 5% Worst 1%
Gross margin ($/ha) Feed (t/ha) Meat production (kg LW/ha) Green pasture (t DM/ha) Annual rainfall (mm) 4 4 35 3 25 2 2 15 1 1.5 5-5 1.5 1.25 1. 1.75.5 3.5.25 3 2 2 1 1 8 6 4 8 7 6 5 4 3 2 2 1 Climate variability 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 21 22 23 24 25 26 27 hay Production risk 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 21 22 23 24 25 26 27 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 21 22 23 24 25 26 27 8 Cocksfoot, annual grass, sub clover 6 4 2 Average = 55 mm 198 1985 199 1995 2 Average = $248/ha Average = 19 kg LW/ha 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 2 21 22 23 24 25 26 27
Pasture supply S. Midlands Cocksfoot - annual grass - sub clover 8 8 7 Green pasture (tonnes Dry Matter /ha) 6 6 5 4 4 3 2 2 1 Jan Mar May Jul Sep Nov Stocking rate = 5 DSE/ha
Variability in pasture supply Green pasture (tonnes Dry Matter /ha) 8 8 7 6 6 5 4 4 3 2 2 1 Best 1% of seasons Jan Mar May Jul Sep Nov Worst 1% of seasons
Reliability of pasture supply - S. Midlands vs SW Victoria Green pasture (tonnes Dry Matter /ha) 8 8 7 6 6 5 4 4 3 2 2 1 Hamilton, VIC Best 1% Worst 1% Jan Mar May Jul Sep Nov Stocking rate = 5 DSE/ha
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)
Assumptions for weaner system Weaners sold on 1st April (7-9 months) Weaners prices (c/kg LW): < 285 kg < 3 kg Steers 27 25 Heifers 215 2 > 3 kg 23 185 CFA cows 13 c/kg LW
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
Profit driver: Stocking rate Test 5 stocking rates:.3,.6,.9, 1.2, 1.5 cows/ha Over 25 years (1979-24)
Grazing pressure: cows/ha vs DSEs Weaner System Cows/ha (includes repl. heifers) Followers/ha.9 DSEs/ha on 1 Jul 8.5
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 8.5 12.7
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 8.5 12.7 +5%
Cost: Supplementary feeding Feed to maintain condition above: score 2. -cows score 2.5 -weaners Hay purchased at $15/t (not cut from surplus) Gross margins calculated after cost of feeding
Significant feeding needed at calving Percentiles for hay fed to mature cows worst 4 years in 1 half the years kg/head/day best 4 years in 1 Calving 1.2 cows/ha
Supplementary feeding depends on stocking rate Annual feed cost averaged over 1979-24 ($/ha/year) 2 1 Yearling systems Weaner systems Calving date Jul Aug Sep.3.6.9 1.2 1.5 1.8 cows/ha
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
Profit driver: Time of calving
3 calving dates tested Green pasture (tonnes Dry Matter /ha) 8 8 7 6 6 5 4 4 3 2 2 1 15 Aug 15 Jul 15 Sep Jan Mar May Jul Sep Nov
Time of calving: yearling vs weaner requirements Green pasture (tonnes Dry Matter /ha) 8 8 7 6 6 5 4 4 3 2 2 1.75 t DM/ha Calving date? Pasture quantity Jan Mar May Jul Sep Nov Pasture quality
Weaners: heavier sale weights from earlier calving and low stocking rates Weight of weaner steers at sale 35 Average LW (kg) 3 25 2 Calving date Jul Aug Sep 15.3.6.9 1.2 1.5 1.8 cows/ha
Yearlings: reaching target (4kg) more likely at low stocking rate 9% Probability Probability July calving 58% 27% 1% 8% 6% 4% 2% % 2 3 4 5 6 Live weight at sale (kg) cows/ha.3.9 1.5
Calving date: little effect on reaching yearling target weight Probability Probability.9 cows/ha 1% 8% 6% 4% 2% % 2 3 4 5 6 Live weight at sale (kg) Calving date Jul Aug Sep
Stocking rate vs Profit (weaners) 4 Average gross margin 3 2 $1/ha Calving date Jul ($/ha) 1.3.6.9 1.2 1.5 1.8 cows/ha
Calving date vs Profit (weaners) 4 Average gross margin 3 2 $5/ha Calving date Jul Aug ($/ha) 1 Sep.3.6.9 1.2 1.5 1.8 cows/ha
More beef from higher stocking rates and from yearling systems 4 Meat kg LW/ha production (kg LW/ha) 3 2 1 weaner yearling.3.6.9 1.2 1.5 cows/ha July calving
Enterprise vs Profit 4 Yearling systems Average gross margin ($/ha) 3 2 1.3.6.9 1.2 1.5 1.8 cows/ha Weaner systems Calving date Jul Aug Sep
Enterprise (same stocking rate and calving date) 4 Yearling systems Average gross margin ($/ha) 3 2 1 $1/ha.3.6.9 1.2 1.5 1.8 cows/ha Weaner systems Calving date Jul Aug Sep
Enterprise (stocking rate and calving optimised) 4 $45/ha Yearling systems Average gross margin ($/ha) 3 2 1 Weaner systems.3.6.9 1.2 1.5 1.8 cows/ha Calving date Jul Aug Sep
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)
What has the greatest effect on Profit? Boost to gross margin: 1. Stocking rate 12-18% 2. Enterprise 15-3% 3. Calving date -15%
Stocking rate, profit & risk What are the downside risks for each system? What are the opportunities?
GM ($/ha) Risk = year-to-year variation Rank gross margins from 25 years 8 8 Weaners - July calving Weaners- July calving 6 6 Best year Gross Margins 1979-24 ($/ha) 4 4 2 2-2 -2 Middle value (median) Worst year.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5 Stocking rate (cows/ha)
GM ($/ha) Rank gross margins from 25 years 8 8 Weaners - July calving Weaners- July calving 6 6 Gross Margins 1979-24 ($/ha) 4 4 2 2 Middle 5% years -2-2.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5 Stocking rate (cows/ha)
GM ($/ha) Rank gross margins from 25 years 8 8 Weaners - July calving Weaners- July calving Gross Margins 1979-24 ($/ha) 6 6 4 4 2 2 Best 25% of years Middle 5% years Worst 25% of years -2-2.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5 Stocking rate (cows/ha)
GM ($/ha) Stocking rate and risk 8 8 Weaners - July calving Weaners- July calving 6 6 Gross Margins 1979-24 ($/ha) 4 4 2 2-2 -2.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5 Stocking rate (cows/ha)
GM ($/ha) Yearlings: more variable Weaners - July calving Weaners- July calving Yearlings - July calving Yearlings- July calving 8 8 6 6 Gross Margins 1979-24 ($/ha) 4 4 2 2-2 -2.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5 Stocking rate (cows/ha)
GM ($/ha) Yearlings: more upside opportunity Weaners - July calving Weaners- July calving Yearlings - July calving Yearlings- July calving 8 8 6 6 Gross Margins 1979-24 ($/ha) 4 4 2 2-2 -2.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5 Stocking rate (cows/ha)
GM ($/ha) Yearlings: similar downside risk Weaners - July calving Weaners- July calving Yearlings - July calving Yearlings- July calving 8 8 6 6 Gross Margins 1979-24 ($/ha) 4 4 2 2-2 -2.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5 Stocking rate (cows/ha)
GM ($/ha) Picking the best long-term stocking rate Weaners - July calving Weaners- July calving Yearlings - July calving Yearlings- July calving 8 8 6 6 Gross Margins 1979-24 ($/ha) 4 4 2 2-2 -2.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5 Stocking rate (cows/ha)
Yearlings: calving date so what?! Yearlings - July calving Yearlings- July calving Yearlings - Sep calving Yearlings-September calving 8 6 Gross Margins 1979-24 ($/ha) 4 2-2.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5.3.6.9 1.2 Stocking rate (cows/ha) 1.5.3.6.9 1.2 1.5 Stocking rate (cows/ha)
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
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?
Profit-drivers in southern beef systems 1. Stocking rate 2. Enterprise type (not calving date) Keep focused: similar drivers, different targets
What did GrassGro show? A way to explore options Your grazing system s potential Profit Production risks Targeted information to support decisions