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Modelled female sale options demonstrate improved profitability in northern beef herds
Author(s) -
Niethe GE,
Holmes WE
Publication year - 2008
Publication title -
australian veterinary journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.382
H-Index - 59
eISSN - 1751-0813
pISSN - 0005-0423
DOI - 10.1111/j.1751-0813.2008.00366.x
Subject(s) - profitability index , herd , gross margin , agricultural science , breeder (animal) , business , production (economics) , economics , zoology , biology , finance , geography , microeconomics , archaeology , blanket
Objective To examine the impact of improving the average value of cows sold, the risk of decreasing the number weaned, and total sales on the profitability of northern Australian cattle breeding properties. Design Gather, model and interpret breeder herd performances and production parameters on properties from six beef‐producing regions in northern Australia. Procedure Production parameters, prices, costs and herd structure were entered into a herd simulation model for six northern Australian breeding properties that spay females to enhance their marketing options. After the data were validated by management, alternative management strategies were modelled using current market prices and most likely herd outcomes. Results The model predicted a close relationship between the average sale value of cows, the total herd sales and the gross margin/adult equivalent. Keeping breeders out of the herd to fatten generally improves their sale value, and this can be cost‐effective, despite the lower number of progeny produced and the subsequent reduction in total herd sales. Furthermore, if the price of culled cows exceeds the price of culled heifers, provided there are sufficient replacement pregnant heifers available to maintain the breeder herd nucleus, substantial gains in profitability can be obtained by decreasing the age at which cows are culled from the herd. Conclusion Generalised recommendations on improving reproductive performance are not necessarily the most cost‐effective strategy to improve breeder herd profitability. Judicious use of simulation models is essential to help develop the best turnoff strategies for females and to improve station profitability.