This study measured forage biomass production, diet quality, cattle liveweight gain, and economic performance of six forage types at 21 sites across 12 commercial beef cattle properties in the Fitzroy River catchment of Queensland during 2011–2014 (28 annual datasets in total). The forages were annual forage crops (oats (Avena sativa), sorghum (Sorghum spp.) and lablab (Lablab purpureus)), sown perennial legume-grass pastures (leucaena-grass (Leucaena leucocephala spp. glabrata + perennial, tropical grass (C4) species) and butterfly pea-grass (Clitoria ternatea + perennial, C4, grass species)), and perennial, C4, grass pastures. The sown forages resulted in 1.2–2.6 times the annual cattle liveweight gain per ha than perennial grass pastures. Annual cattle liveweight gain per ha, forage establishment and management costs, and cattle price margin (sale price less purchase price, $/kg liveweight) all influenced gross margin, however, none was an overriding factor. The average gross margins ($/ha.annum) calculated using contractor rates, ranked from highest to lowest, were: leucaena-grass pastures, 181; butterfly pea-grass pastures, 140; oats, 102; perennial grass, 96; sorghum, 24; and lablab, 18. It was concluded that the tendency towards greater average gross margins for perennial legume-grass pastures than for annual forage crops or perennial grass pastures was the result of the combined effects of lower average forage costs and high cattle productivity.
Context Phosphorus (P) deficiency occurs in beef cattle grazing many rangeland regions with low-P soils, including in northern Australia, and may severely reduce cattle productivity in terms of growth, reproductive efficiency and mortality. However, adoption of effective P supplementation by cattle producers in northern Australia is low. This is likely to be due to lack of information and understanding of the profitability of P supplementation where cattle are P-deficient. Aims The profitability of P supplementation was evaluated for two dissimilar regions of northern Australia, namely (1) the Katherine region of the Northern Territory, and (2) the Fitzroy Natural Resource Management (NRM) region of central Queensland. Methods Property-level, regionally relevant herd models were used to determine whole-of-business productivity and profitability over 30 years. The estimated costs and benefits of P supplementation were obtained from collation of experimental data and expert opinion of persons with extensive experience of the industry. The economic consequences of P supplementation at the property level were assessed by comparison of base production without P supplementation with the expected production of P-supplemented herds, and included the implementation phase and changes over time in herd structure. In the Katherine region, it was assumed that the entire cattle herd (breeders and growing cattle) grazed acutely P-deficient land types and the consequences of (1) no P supplementation, or P supplementation during (2) the dry season, or (3) both the wet and dry seasons (i.e. 3 scenarios) were evaluated. In the Fitzroy NRM region, it was assumed that only the breeders grazed P-deficient land types with three categories of P deficiency (marginal, deficient and acutely deficient), each with either (1) no P supplementation, or P supplementation during (2) the wet season, (3) the dry season, or (4) both the wet and dry seasons (i.e. 12 scenarios). Key results In the Katherine region, year-round P supplementation of the entire cattle herd (7400 adult equivalents) grazing acutely P-deficient pasture resulted in a large increase in annual business profit (+AU$500000). Supplementing with P (and N) only in the dry season increased annual business profit by +AU$200000. In the Fitzroy NRM region, P supplementation during any season of the breeder herd grazing deficient or acutely P-deficient pastures increased profit by +AU$2400–AU$45000/annum (total cattle herd 1500 adult equivalents). Importantly, P supplementation during the wet season-only resulted in the greatest increases in profit within each category of P deficiency, comprising +AU$5600, AU$6300 and AU$45000 additional profit per annum for marginal, deficient and acutely P-deficient herds respectively. Conclusions The large economic benefits of P supplementation for northern beef enterprises estimated in the present study substantiate the current industry recommendation that effective P supplementation is highly profitable when cattle are grazing P-deficient land types. Implications The contradiction of large economic benefits of P supplementation and the generally low adoption rates by the cattle industry in northern Australia suggests a need for targeted research and extension to identify the specific constraints to adoption, including potential high initial capital costs.
Context. Beef producers in northern Australia are continually presented with new technologies and opportunities to enhance beef production. They need to be able to accurately and efficiently assess the potential impact of alternative strategies on profitability, risk and the period of time before benefits can be expected. Aims. Our aim was to demonstrate the value of the farm-management economics framework for assessing alternative management strategies applicable to beef cattle enterprises in northern Australia. Methods. Beef cattle herd models incorporated into a farm-level partial discounted cash-flow framework were used to evaluate the potential effects of alternative management strategies on the performance of enterprises. This was undertaken using constructed, representative beef enterprises developed for the following three regions in Queensland: Central, Northern Downs and Northern Gulf, and the Katherine region of the Northern Territory. The analysis considered the expected response to change in the management of the base herd. Strategies that targeted (1) overall herd or property performance, (2) breeder reproductive performance, (3) steer growth rates, (4) alternative beef cattle marketing options, or (5) enterprise expansion were assessed. All of the changes considered to the current management strategy of the base herd and property were put forward by industry participants as potentially positive. Key results. The framework efficiently identified substantial differences in net benefits among strategies and allowed ranking of the alternatives at the property level. Strategies that improved profitability also generally increased management complexity and financial risk. While strategies that could substantially improve profitability were identified, many other strategies were likely to reduce profitability at the property level. Key insights were gained into the time taken to implement the strategies, the complexity of implementation, and the level of financial risk incurred. Conclusions. This study (1) demonstrated the appropriate framework to compare management options and support decision making, (2) efficiently indicated the potential range of outcomes, and (3) provided insight into the risks associated with development processes and technology adoption. Implications. This farm-management economics framework could be used to assess alternative strategies for individual beef enterprises and to guide appropriate adoption of technology.
Northern Australia is characterised by high rainfall variability and extended droughts that challenge sustainable and profitable management of grazing properties. To achieve drought resilience, emphasis must be placed on supporting livestock managers to prepare for drought as well as implementing appropriate drought response and recovery actions. Here we describe insights and learnings gained from working with scientists, industry development and extension officers, and property managers, to enable more profitable and drought resilient extensive livestock production systems across northern Australia. We provide examples from the modelling and analysis of hypothetical grazing properties representative of enterprises across northern Australia. To prepare for drought, we principally propose the application of the farm-management economics framework to identify investment strategies which can improve enterprise resilience through building wealth over the longer term. The critical first step in drought preparedness for beef businesses was the implementation of management strategies to achieve the optimal herd structure, steer sale age, and breeder body condition. Other key strategies to improve profitability across northern Australia were (1) addressing a phosphorus deficiency for cattle through effective supplementation and (2) establishing adapted perennial legume-grass pastures to improve steer nutrition. In addition, we identify the benefits of working closely with livestock managers and industry to gain adoption of proven technologies that effectively improve decision-making capacity and the drought preparedness of extensive livestock production systems. The usefulness of the farm-management economics approach to assess the relative value of alternative tactical destocking and restocking decisions during drought response and recovery is also discussed. These latter analyses can highlight important differences between options in terms of future profit and cash flow, as well as the ability to rapidly return the property to the most profitable herd structure and age of turnoff, with consideration of production and financial risk. Additionally, integrating pasture growth models with herd or flock economic models can provide insights into the effects, on profitability and sustainability, of alternative destocking and later restocking strategies over the longer term. Combined, the farm-management economics framework approach can support more informed decision-making by livestock producers and hence enable more profitable and drought resilient extensive livestock production systems. However, achieving drought resilience in the grazing lands of northern Australia will require emphasis on drought preparation, in addition to appropriate action in response and recovery phases of drought. Key to this approach is increasing the adoption of strategies that enhance drought preparedness.
Beef producers have to determine the best allocation of a limited resource of high-quality forage. This analysis assessed the most profitable way of incorporating high-quality forages into the whole-of-life steer growth path on forage systems in central Queensland, using property-level, regionally relevant herd models that determine whole-of-business productivity and profitability over a 30-year investment period. Twenty-two growth paths (liveweight change over time) from weaning to marketing were investigated for steers grazing buffel grass (Cenchrus ciliaris) pastures with and without access to leucaena–grass pastures (Leucaena leucocephala spp. glabrata + perennial, tropical grass (C4) species) or forage oats (Avena sativa) for varying intervals throughout their growth path. The production, economic and financial effect of each growth path was assessed by comparison to a base scenario that produced finished, slaughter steers (605 kg) from buffel grass pastures. The relative profitability of marketing steers at feedlot entry (feed-on) weight (474 kg) instead of slaughter weights was also assessed. The growth paths were applied within two beef enterprises, namely (1) steer turnover and (2) breeding and finishing. For both enterprises, grazing steers on leucaena-grass pastures from weaning until they achieved feedlot entry weight (474 kg) was substantially more profitable than any other growth path. Compared with the base scenario, this optimal growth path improved profitability by 121% and 37% for the steer turnover and the breeding and finishing enterprises respectively. The purchase of additional breeders for the latter enterprise was required to optimise utilisation of the leucaena–grass pastures immediately. Incorporating leucaena–grass pastures at any steer age improved the profitability of the steer turnover enterprise (AU$7368–AU$106508 extra profit/annum), and similarly for the breeding and finishing enterprise (AU$1754–AU$31383 extra profit/annum) except for two scenarios where leucaena–grass pastures were provided to older steers targeted at the feed-on market (AU$4816 and AU$23886 less profit/annum). However, incorporation of leucaena–grass into steer growth paths also resulted in increased peak deficit levels and financial risk to the business compared with buffel grass-only production systems, with payback periods for the most profitable growth path of 8 and 14 years for the steer turnover and the breeding and finishing enterprise respectively. All growth paths that incorporated forage oats and leucaena–grass resulted in lower economic and financial performance than did comparable growth paths that incorporated leucaena–grass only. Furthermore, incorporating oats into buffel grass-only growth paths always reduced the enterprise profitability. There was no relationship, across scenarios within an enterprise, between change in profit and the number of extra weaners produced or the amount of extra beef produced per hectare.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.