Gross margins in Australian mohair enterprises and relationships with farm inputs, productivity and mohair quality

2010 ◽  
Vol 50 (6) ◽  
pp. 573 ◽  
Author(s):  
B. A. McGregor ◽  
W. D. English
Keyword(s):  
Grazing Intensity ◽  
Financial Information ◽  
Average Price ◽  
Stocking Rate ◽  
Fine Hair ◽  
Gross Margin ◽  
Phosphate Fertiliser ◽  
Eastern Australia ◽  
Gross Margins ◽  
Farm Inputs

In the absence of financial information on Australian mohair enterprises we aimed to determine the gross margins (per dry sheep equivalent, DSE) and their relationships with farm inputs, productivity and mohair quality in Australian mohair enterprises. Using established Victorian Farm and Sheep Monitor Project protocols we collected data for the financial years 2004–05, 2005–06 and 2006–07 from farmers in south-eastern Australia and made comparisons with data from wool enterprises of similar farm area. Over 3 years the financial returns from mohair exceeded that from wool in terms of $/DSE ($23.0 v. 11.3) and $/ha ($132 v. $116). This result was achieved despite the mohair enterprises grazing their goats far less intensively compared with the grazing intensity of sheep (5.9 v. 10.3–11.1 DSE/ha) and by using far less phosphate fertiliser than used in the wool enterprises (2.2 v. 4.6–6.1 kg P/ha). These differences were counterbalanced by higher prices for mohair compared with fine wool ($13.15/kg v. $8.35/kg clean fibre). Gross margin for the mohair enterprise did not increase as stocking rate increased. Income from mohair sales declined as the proportion of does in the flock increased. Increasing the proportion of does in the flock was associated with a decline in the average price of mohair ($16/kg greasy at 42% does to $8/kg greasy at 83% does in the flock). This decline was closely associated with the increasing proportion of the total amount of mohair coarser than 34.0 µm (either fine hair or hair) plus stained mohair. The variation in profitability between farms indicates significant scope for many mohair enterprises to increase profit. A focus on producing finer quality mohair will increase mohair profitability.

Modelling the risk of different joining times and lamb sale policies

2014 ◽  
Vol 54 (10) ◽  
pp. 1694 ◽  
Author(s):  
S. M. Robertson ◽  
A. F. Southwell ◽  
M. A. Friend
Keyword(s):  
Carrying Capacity ◽  
Simulation Modelling ◽  
Management Systems ◽  
Stocking Rate ◽  
Gross Margin ◽  
Feed Resources ◽  
Systems Simulation ◽  
Gross Margins ◽  
The Impact ◽  
Stocking Rates

Month of joining and lamb sale strategy influence both the quantity and so value of lamb produced, and the feed required, so are important management decisions contributing to the profitability of sheep systems. Simulation modelling was used to evaluate the impact on gross margins of three lamb sale strategies for different months of joining and varying stocking rates. A flock of purchased Merino ewes producing crossbred lambs in southern Australia was modelled between 1971 and 2011. April joining produced higher gross margins than November or January only if the number of ewes per hectare was increased to potential carrying capacity. At the optimum stocking rate for each month of joining, three sale policies – a flexible lamb sale policy (where lambs were sold depending on seasonal conditions); selling lambs in December; or selling at 45-kg liveweight, all produced a similar mean gross margin, but the feed resources required were least using the flexible strategy (April-joined mean 195 ± 253 s.d. kg/ha for flexible compared with 219 ± 270 kg/ha if selling December or 1085 ± 459 kg/ha if sold at 45 kg). Mean gross margin differed between sale strategies by up to AU$66/ha if the optimal stocking rate was not used. These results suggest that the most advantageous lamb sale strategy will vary with both month of joining and stocking rate used, and should be considered when optimising sheep management systems.

Modelling the effect on stocking rate and lamb production of allowing ewes to graze a dual-purpose wheat crop in southern New South Wales

2014 ◽  
Vol 54 (10) ◽  
pp. 1625 ◽  
Author(s):  
S. R. McGrath ◽  
J. M. Virgona ◽  
M. A. Friend
Keyword(s):  
Growth Rates ◽  
New South ◽  
New South Wales ◽  
Wheat Crop ◽  
Stocking Rate ◽  
Gross Margin ◽  
Dual Purpose ◽  
Mixed Farming ◽  
South Wales ◽  
Gross Margins

Slow pasture growth rates during winter limit the potential gross margins from autumn and early winter lambing in southern New South Wales (NSW) by limiting stocking rates and/or increasing supplementary feed requirements. Dual-purpose crops can reduce the winter feed gap in mixed-farming systems by increasing the available feed in winter. The simulation software AusFarm was used to model a mixed-farming system at Wagga Wagga with Merino ewes joined to terminal sires and grazing lucerne-subterranean clover pasture over a 41-year period. A paddock of dual-purpose wheat was then added to the system, and ewes were allowed to graze the wheat crop when feed on offer reached 850 kg DM/ha and before GS31. Weaned lambs were sold after late August if lamb growth rates fell below 20 g/head.day, mean lamb weight reached 45 kg or production feeding of lambs was required. Lambing in June resulted in the highest median gross margin whether or not ewes were able to graze the wheat crop during winter. Grazing of a dual-purpose wheat crop resulted in greater proportional increases in gross margins as stocking rate was increased, increased lamb production and reduced supplementary feeding costs, and reduced interannual variability in gross margin returns.

Production and gross margins for sheep and cattle grazed separately and together

1975 ◽  
Vol 15 (72) ◽  
pp. 38 ◽  
Author(s):  
D Hamilton
Keyword(s):  
First Grade ◽  
Stocking Rate ◽  
Gross Margin ◽  
Supplementary Feed ◽  
Gross Margins ◽  
Stocking Rates

On annual pasture, ewes lambing in autumn and young steers grazed separately each at five stocking rates, and grazed together in a ratio of 4 : 1 at each of three stocking rates. Gross margin per hectare (GMH) from the sheep was greatest at the heaviest stocking rate that could be carried safely without supplementary feed, and from steers was greatest at the heaviest stocking rate at which a high proportion of carcases were first-grade, even in a year of poor pasture. Maximum GMH from the steers was obtained at a lighter equivalent stocking rate than that required for maximum GMH from the sheep. When the sheep and steers grazed together at a stocking rate where first-grade steer carcases were produced consistently, the loss in potential sheep GMH from reducing the sheep stocking rate to this level was greater than the value of any benefit from mixed stocking. This finding is discussed in relation to results from another environment where no difference was found between sheep and cattle in the stocking rate required for maximum GMH.

Optimal management of fertiliser and stocking rate in temperate grazing systems

2010 ◽  
Vol 50 (1) ◽  
pp. 6 ◽  
Author(s):  
Karel Mokany ◽  
Andrew D. Moore ◽  
Phillip Graham ◽  
Richard J. Simpson
Keyword(s):  
Cash Flow ◽  
Application Rate ◽  
Optimal Management ◽  
Stocking Rate ◽  
Eastern Australia ◽  
Grazing Systems ◽  
Fertiliser Application ◽  
Gross Margins ◽  
Stocking Rates

Phosphorus (P) fertilisers are one of the key tools available for increasing pasture production and the profitability of grazing enterprises. However, recent rapid changes in fertiliser price have increased the importance of developing optimal management strategies for applying P fertiliser and setting stocking rates. We applied a novel combination of process-based grazing systems modelling and randomised cash flow analyses to examine how changes in fertiliser price affect optimal fertiliser application rates and stocking rates for sheep grazing systems in south-eastern Australia, simultaneously taking into account long-term economic viability and environmental sustainability. We used ‘GrassGro’, a grazing systems decision support tool, to simulate three sheep enterprise types (Merino wethers, Merino ewes, crossbred ewes) at two locations (Hamilton, Victoria; Bookham, New South Wales). Gross margins from each year simulated in GrassGro (1966–2007) were randomised 500 times and input to a cash flow analysis that identified the financially optimal stocking rate for a range of fertiliser applications and the financial risk frontiers (combinations of stocking rate and fertiliser input for which the enterprise becomes financially unviable). For all enterprises examined at both locations, the optimal combinations of stocking rate and fertiliser application rate did not vary markedly as fertiliser price changed. Regardless of enterprise type or location, the fertiliser application rate at which the highest gross margins were achieved provided the greatest range of stocking rates that were both financially viable and environmentally sustainable. Increases in fertiliser price reduced the combinations of stocking rate and fertiliser application rate that were viable in the long term, emphasising the importance of well informed grazing management decisions.

Performance of sheep systems grazing perennial pastures. 4. Simulated seasonal variation and long-term production

2020 ◽  
Vol 60 (3) ◽  
pp. 423
Author(s):  
Susan M. Robertson ◽  
Michael A. Friend
Keyword(s):  
Decision Support Tool ◽  
Supplementary Feeding ◽  
Stocking Rate ◽  
Gross Margin ◽  
Production Risk ◽  
Support Tool ◽  
South Wales ◽  
The Cost ◽  
Gross Margins ◽  
Stocking Rates

Choice of sheep-management system alters both production potential and the production risk due to variability in seasonal conditions. This study quantified production and gross margins from systems based on Merino ewes and varying in stocking rate, time of lambing, and the proportion of ewes joined to terminal-breed or Merino rams. Simulation studies were conducted between 1971 and 2011 using the AusFarm decision-support tool for a grazing property in southern New South Wales. Joining between December and May resulted in higher gross margins than in other months because of higher numbers of lambs sold combined with a lower requirement for supplementary feeding. More ewes could be carried per hectare for April joining than February joining to achieve the same midwinter stocking rate and risk of feeding. Self-replacing systems could produce median gross margins similar to those with replacement ewes purchased, but gross margins were sensitive to the cost of replacement ewes. Of the systems compared, February joining to Merino rams produced the lowest gross margins at all stocking rates, but this system also had the lowest variability among years. The advantage of different systems was dependent on seasonal conditions, which altered lamb production and supplementary feeding. The median ranking of systems for gross margin generally did not alter with changes in feed, sheep or wool values. Large increases in gross margins can be achieved through use of terminal-breed rams, optimal stocking rates and time of lambing, but the superiority of any option depended on production system, price assumptions and seasonal conditions.

Influence of stocking rate and phosphate fertiliser application on the composition of annual legume seedbanks within a Mediterranean grassland

2010 ◽  
Vol 61 (12) ◽  
pp. 988 ◽  
Author(s):  
Hayley C. Norman ◽  
Philip S. Cocks ◽  
Nicholas W. Galwey
Keyword(s):  
Reproductive Strategies ◽  
Grazing Intensity ◽  
Common Garden ◽  
Stocking Rate ◽  
Legume Seed ◽  
Early Maturity ◽  
General Hypothesis ◽  
High Fecundity ◽  
Phosphate Fertiliser ◽  
Fertiliser Application

This paper tested the general hypothesis that differences in grazing intensity and phosphate application lead to adjustments in the structure of an annual legume community in natural and diverse grassland at Tel Hadya, Syria, due to changes in competitive relationships between species. The management treatments imposed were a factorial design of 0 or 60 kg/ha of superphosphate fertiliser (applied annually) and relatively low or high continuous sheep stocking intensities. These management treatments were applied for 13 years across three replicate paddocks for each treatment before the annual legume seed banks were sampled. The seed was sorted and representative plants were grown in a common garden in Perth, Australia, to assess reproductive and morphological traits. We found that phosphate application had more influence on species composition than stocking rate and favoured species with relatively competitive reproductive strategies (plants with relatively large seeds, low fecundity and early maturity). Contrary to our expectations, a higher stocking rate did not result in an increase in the proportion of small seeds in the legume seed bank or favour species with other strongly ruderal-type reproductive strategies (high fecundity and high seed dormancy). In paddocks without phosphate application, the high and low stocking rate paddocks were dominated by different species (Trifolium tomentosum and T. campestre), each with a similar reproductive strategy. Plant architecture and/or differences in animal selectivity may account for these differences. The study highlights the importance of phosphate fertiliser for maintaining seedbanks of competitive-type (large seed size, highly productive with good early vigour) annual legume species.

Pasture systems to improve productivity of sheep in south-western Victoria 2. Animal production from ewes and lambs

2011 ◽  
Vol 51 (11) ◽  
pp. 982 ◽  
Author(s):  
Geoffrey Saul ◽  
Gavin Kearney ◽  
Dion Borg
Keyword(s):  
Flow Analysis ◽  
Subterranean Clover ◽  
Supplementary Feeding ◽  
Stocking Rate ◽  
Discounted Cash Flow ◽  
Condition Score ◽  
Western Victoria ◽  
Breakeven Point ◽  
Gross Margins ◽  
On Farm

Two pasture systems (Typical, Upgraded) were compared at five on-farm sites across south-western Victoria between 1990 and 1996. The Typical pasture treatment mimicked the pastures common in the region, with volunteer annual-based species fertilised with ~5 kg/ha.year phosphorus (P). The Upgraded pasture treatment was sown to phalaris, perennial ryegrass and subterranean clover using cultivars recommended for the particular area. Higher rates of fertiliser (13–25 kg/ha.year P) plus other nutrients were applied. Both pastures were set-stocked with breeding ewes. The stocking rate on the Typical treatments was based on normal farm practice. Initially, the stocking rate of the Upgraded pastures was 15% higher than the Typical pastures and increased over time depending if the ewes in the Upgraded pastures were heavier than those in the Typical pastures. Measurements included pasture growth, composition and persistence, ewe stocking rates, ewe and lamb liveweights and condition scores, lambing, marking and weaning percentages, fleece characteristics and supplementary feeding. Over the 6 years, the average carrying capacity of the Upgraded pastures was 18.0 DSE (Dry Sheep Equivalents)/ha compared with 10.2 DSE/ha on the Typical pastures (P < 0.001). As well, the ewes on the Upgraded pastures were 2–3 kg heavier (P < 0.001) and 0.3 condition score higher (P < 0.001) than those on the Typical pastures. Ewes grazing the Upgraded pastures cut significantly more wool per head (4.8 versus 4.5 kg) of higher micron wool (23.1 versus 22.6 um, P < 0.001) but with similar yield and strength. There was no difference in the supplementary feeding required on the treatments. Ewes grazing Upgraded pastures had significantly higher lambing (116 versus 102%), marking (86 versus 81%) and weaning percentages (84 versus 79%) and weaned significantly heavier lambs (23.6 versus 22.6 kg) than those on Typical pastures. There was less feed on offer (P < 0.05) in the Upgraded pastures compared with the Typical pastures in autumn–winter but similar or higher levels in spring and summer. Gross margins using current costs and prices were $20 and $24/DSE for the Typical and Upgraded pastures, respectively. These values were used in a discounted cash flow analysis to determine the long-term benefits of the treatments. Assuming a 12-year life for the pasture, the internal rate of return was 27% with the breakeven point in Year 7. Treatment and ewe condition score significantly influenced lambing percentage with ewes in condition score 3.0 at joining having a lambing percentage of 111% compared with 95% if at condition score 2.3. Irrespective of condition score, ewes grazing Upgraded pastures had a 7% higher lambing percentage than those grazing the Typical pastures. Ewe condition score and lambing time significantly affected weaning weight. Lambs born to ewes in condition score 2.3 during pregnancy and lambing in autumn, reached only 32% of mature ewe liveweight at weaning whereas lambs from ewes at condition score 3.0 achieved 51% of mature weight by weaning.

scholarly journals Economic analysis of smallholder maize farmers: implications for public extension services in Eastern Cape

2020 ◽  
Vol 48 (2) ◽  
Author(s):  
I. K. Agbugba ◽  
M. Christian ◽  
A. Obi
Keyword(s):  
Smallholder Farmers ◽  
Sampling Procedure ◽  
Land Acquisition ◽  
Smallholder Farmer ◽  
Eastern Cape ◽  
Gross Margin ◽  
Profitability Analysis ◽  
Household Heads ◽  
Multistage Sampling ◽  
Gross Margins

ABSTRACT This study sought to determine the economics of maize farmers in Amatole District, Eastern Cape. Multistage sampling procedure was used to select hundred and nine (109) smallholder farmers (homestead and irrigators). Descriptive statistics and gross margin analysis were used to determine the economics and profitability of maize in the study area. Findings indicated that majority (66 per cent) of them were men with an average age of 61 years old, majority (69 per cent) were married, with mean household size of 4 persons and household heads having some primary education. Moreover, majority (76 per cent) of the farmers depended on irrigation technology; majority (33 per cent) of the famers spent between 9 and 11 years of experience in farming; majority (89 per cent) of the respondents in the study area were dependent on farming as their major occupation and livelihood. Pertaining to land acquisition, majority (48%) of the farmers believed that the traditional or community leaders set rules and regulations regarding land acquisition. From the profitability analysis, smallholder farmer irrigators generated significantly higher yield, total revenues and gross margins more than the homestead gardeners at 5, 10 and 5 per cent levels, respectively. Moreover, homestead gardeners spent more money in purchase of inputs and this may have contributed to their low gross margins. On the other hand, smallholder-farmer irrigators who incur less input costs have higher chances of benefiting from price discounts and transport offer by input suppliers than the homestead gardeners. This results in smallholder farmer irrigators wielding more profits, thereby creating more income and wealth which is pivotal in the improvement of farmers' livelihoods. Keywords: Economics, profitability, Maize farmers, Extension service, Eastern Cape.

scholarly journals Estimating an Aggregate Economic Genotype to Facilitate Breeding and Selection of Strawberry Genotypes in Southeast Queensland

2014 ◽  
Vol 139 (3) ◽  
pp. 253-260
Author(s):  
Mark E. Herrington ◽  
Craig Hardner ◽  
Malcolm Wegener ◽  
Louella Woolcock ◽  
Mark J. Dieters
Keyword(s):  
Rank Correlation ◽  
Breeding Population ◽  
Breeding Program ◽  
Production Costs ◽  
Breeding Value ◽  
Linear Quadratic ◽  
Gross Margin ◽  
Economic Weight ◽  
Non Linear ◽  
Gross Margins

The Queensland strawberry (Fragaria ×ananassa) breeding program in subtropical Australia aims to improve sustainable profitability for the producer. Selection must account for the relative economic importance of each trait and the genetic architecture underlying these traits in the breeding population. Our study used estimates of the influence of a trait on production costs and profitability to develop a profitability index (PI) and an economic weight (i.e., change in PI for a unit change in level of trait) for each trait. The economic weights were then combined with the breeding values for 12 plant and fruit traits on over 3000 genotypes that were represented in either the current breeding population or as progenitors in the pedigree of these individuals. The resulting linear combination (i.e., sum of economic weight × breeding value for all 12 traits) estimated the overall economic worth of each genotype as H, the aggregate economic genotype. H values were validated by comparisons among commercial cultivars and were also compared with the estimated gross margins. When the H value of ‘Festival’ was set as zero, the H values of genotypes in the pedigree ranged from –0.36 to +0.28. H was highly correlated (R2 = 0.77) with the year of selection (1945–98). The gross margins were highly linearly related (R2 > 0.98) to H values when the genotype was planted on less than 50% of available area, but the relationship was non-linear [quadratic with a maximum (R2 > 0.96)] when the planted area exceeded 50%. Additionally, with H values above zero, the variation in gross margin increased with increasing H values as the percentage of area planted to a genotype increased. High correlations among some traits allowed the omission of any one of three of the 12 traits with little or no effect on ranking (Spearman’s rank correlation 0.98 or greater). Thus, these traits may be dropped from the aggregate economic genotype, leading to either cost reductions in the breeding program or increased selection intensities for the same resources. H was efficient in identifying economically superior genotypes for breeding and deployment, but because of the non-linear relationship with gross margin, calculation of a gross margin for genotypes with high H is also necessary when cultivars are deployed across more than 50% of the available area.

The Brigalow Catchment Study: III. Productivity changes on brigalow land cleared for long-term cropping and for grazing

Soil Research ◽  
2007 ◽  
Vol 45 (7) ◽  
pp. 512 ◽  
Author(s):  
B. J. Radford ◽  
C. M. Thornton ◽  
B. A. Cowie ◽  
M. L. Stephens
Keyword(s):  
Crop Production ◽  
Clay Soil ◽  
Soil Nutrient ◽  
Grain Protein Content ◽  
Annual Rainfall ◽  
Soil N ◽  
Stocking Rate ◽  
Beef Production ◽  
Eastern Australia ◽  
Productivity Decline

Productivity of grain crops and grazed pastures inevitably declines without soil nutrient replacement and may eventually make these enterprises unprofitable. We monitored these declines in north-eastern Australia during 23 years after clearing 2 of 3 adjacent brigalow catchments, in order to define the productivity levels of developed brigalow land over time. One catchment (11.7 ha) was used for grain production and another (12.7 ha) for beef production from a sown buffel grass pasture. There was no upward or downward trend in annual rainfall amounts throughout the study period. In the cropped catchment, grain yield from 14 winter crops without added nutrients declined significantly in 20 years from 2.9 to 1.1 t/ha.year on the upper-slope clay soil (92 kg/ha.year) and from 2.4 to 0.6 t/ha.year on the Sodosol (88 kg/ha.year). Crop production per year declined by 20% between 2 successive 10-year periods. Wheat grain protein content also declined with time, falling below the critical value for adequate soil N supply (11.5%) 12 years after clearing on the Sodosol and 16 years after clearing on the clay soil. Such declines in grain quantity and quality without applied fertiliser reduce profitability. The initial pasture dry matter on offer of 8 t/ha had halved 3 years after clearing, and a decline in cattle liveweight gain of 4 kg/ha.year was observed over an 8-year period with constant stocking of 0.59 head/ha. Due to fluctuating stocking rate levels of 0.3–0.7 head/ha over the trial period, liveweight productivity trends are attributed to the multiple effects of stocking rate changes and fertility decline. The amount of nitrogen exported from the cleared catchments was 36.1 kg/ha.year in grain but only 1.6 kg/ha.year in cattle (as liveweight gain). Total soil N at 0–0.3 m declined by 84 kg/ha.year under cropping but there was no significant decline under grazing. The soil nutrients removed during grain and beef production need to be replaced in order to avert productivity decline post-clearing.

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