Modifying supply of beef feedlot replacements: The feasibility and profitability of selected on farm cattle systems: A dissertation submitted in partial fulfilment of the requirements for the degree of Bachelor of Agricultural Science (Honours)

Abstract

An investigation into the profitability of running various cattle systems on a hypothetical irrigated sheep and crop farm in Canterbury was carried out using a feed planning programme. Grazing steers (Steers) for Five Star Beef was found to return the highest margin before feed costs at 19.96c/kg DM and an autumn calving cow herd (Aut calve) the lowest at 5.69c/kg DM. Once bred heifers (OBH) and grazing weaner steers (Weaners) were intermediate in margin at 8.70c/kgDM and 8.06c/kgDM respectively. Inclusion of feed costs into the gross margin reduced the net return. Weaners had the highest feed cost thus their returns were reduced the most from 8.06c/kgDM to 2.90c/kgDM. Cattle gross margins were combined with those for sheep and crop to produce a per hectare figure. OBH and Steers had the highest return at $591/ha and $581/ha respectively and Weaners along with Aut calve the lowest at $498/ha and $497 /ha respectively. It is notable that as a comparison a straight sheep and crop farm returned $552/ha. Reducing the cost of fodder crop by 4.4c/kg DM to 2.3c/kg DM by excluding the cost of regrassing, improved the gross margin per hectare of Weaners and Steers by 6% and 7% respectively. Both had a high fodder crop reliance in the winter. Reduction of the feed cost and incorporation of a $200/head out of season premium for autumn born steers improved gross margin per hectare 13% to $557 /ha for the Aut Calve system. A number of additional benefits and possible negative side-effects were also identified.