Optimization of Profit for Pasture-Based Beef Cattle and Sheep Farming Using Linear Programming: Model Development and Evaluation

Addis, Addisu H.; Blair, Hugh T.; Kenyon, P. R.; Morris, S. T.; Schreurs, Nicola M.

doi:10.3390/agriculture11060524

Cited by 8 publications

(14 citation statements)

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“…A profit maximization farm model for a Class 5 pasture-based, intensive finishing sheep and beef cattle farm in the North Island of New Zealand was developed using linear programming [30]. Detail descriptions of the model development, input and output parameters were reported by [30]. Briefly, the model was developed for a one-year horizon using bimonthly periods.…”

Section: Methodsmentioning

confidence: 99%

“…Thus, the model enabled the calculation of the number of beef cattle and sheep in bimonthly periods based on the carrying capacity of the given feed supply and the determination of the type and number of beef cattle and sheep that should be sold at any given bimonthly period. In the model, the sheep proportion of total farm feed intake was assumed to be constant and the sheep:beef cattle ratio was fixed (50:50 respectively), which allowed the study to focus on the beef cattle aspect of the enterprise [30].…”

Section: Methodsmentioning

confidence: 99%

“…This scenario examined the total number of young beef cattle that could be supported with feed resource consumed by 25% of traditional beef cattle and their effect on beef cattle marketing policies. Pasture utilization and farm profitability generated from the current model were compared with the optimized traditional beef cattle and sheep model [30]. In both scenarios, the proportion of sheep feed intake was maintained the same as per the base model [30].…”

Section: Model Scenariosmentioning

confidence: 99%

“…Pasture utilization and farm profitability generated from the current model were compared with the optimized traditional beef cattle and sheep model [30]. In both scenarios, the proportion of sheep feed intake was maintained the same as per the base model [30].…”

Section: Model Scenariosmentioning

confidence: 99%

“…Therefore, this study was initiated with specific objectives of examining feed demand and utilization, animal performance and farm profitability in a pasture-based production system that incorporates young beef cattle slaughtered at the ages of 8, 10, 12 or 14 months on Class 5 sheep and beef cattle farms. A profit maximization model that had previously been developed [30] for this farm class was modified to include young beef cattle with or without decreasing traditional beef cattle within the system to identify the optimum number of young and traditional beef cattle and the marketing policies for the given feed resources to optimize feed utilization and farm profitability. The output from this new model will provide insight to farm advisors and farmers regarding to the potential use of young beef cattle finishing system under New Zealand's pasture-based farming conditions.…”

Section: Introductionmentioning

confidence: 99%

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Optimization of Profit for Pasture-Based Beef Cattle and Sheep Farming Using Linear Programming: Young Beef Cattle Production in New Zealand

et al. 2021

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In New Zealand, surplus dairy-origin calves not needed as replacement or for beef cattle farms requirements for finishing are commercially slaughtered within two weeks of age. This system has perceived ethical issues which can potentially negatively affect the dairy industry. Therefore, a young beef cattle production system to maximize the use of excess calves within the land size constraint is considered as an alternative to a traditional 18 to 33-months slaughtering system. The current study examined the effects of young beef cattle production with slaughter ages at 8 to 14 months on pasture utilization, farm profitability and selling policy on class 5, intensive finishing sheep and beef cattle farms in New Zealand. A linear programming model that had previously been developed for this farm class (optimized traditional beef cattle system) was modified to include a young beef cattle slaughter system and identified the carrying capacity for young and traditional beef cattle and the selling policy required to optimize pasture utilization and farm profitability. Systems with young beef cattle slaughtered at 8, 10, 12 or 14-months of age were simulated without (Scenario I) or with (Scenario II) decreasing the number of traditional beef cattle. Daily per head energy demand for maintenance and live weight change was estimated and converted to kg DM/head on a bimonthly basis. Carcasses from young beef cattle were processed as one class under manufacturing beef price (NZ$4.50). The modified young and traditional beef cattle slaughtering system maintained an extra 6% and 35% beef cattle in Scenario I and Scenario II respectively, and finished 90% and 84% of traditional beef cattle before the second winter. Pasture supplied 98% of the feed demand for the beef cattle activities and 79–83% of that was consumed. Mixed young and traditional beef cattle finishing scenarios returned 2% less gross farm revenue per hectare (GFR/ha). However, earnings before tax per hectare (ETB/ha) in Scenario I and Scenario II were 15–25% greater than that of the optimized traditional beef cattle system, respectively. Young beef cattle production increased pasture utilization and farm profitability and increased selling options for finished beef cattle. Therefore, the young beef cattle system is a viable option for farmers and will help to reduce the need to slaughter calves within two weeks of age.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%