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

1975 ◽  
Vol 15 (72) ◽  
pp. 38 ◽  
Author(s):  
D Hamilton

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.

2014 ◽  
Vol 54 (10) ◽  
pp. 1694 ◽  
Author(s):  
S. M. Robertson ◽  
A. F. Southwell ◽  
M. A. Friend

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.


2018 ◽  
Vol 58 (1) ◽  
pp. 103
Author(s):  
L. Anderton ◽  
J. M. Accioly ◽  
K. J. Copping ◽  
M. P. B. Deland ◽  
M. L. Hebart ◽  
...  

The present paper focuses on the economic evaluation of the observed differences in maternal productivity of different genetic lines in Angus cattle that were managed under contrasting nutritional regimes typical of southern Australia. Five hundred Angus cows were managed concurrently at two locations in southern Australia. On each site, the cows were managed under the following two different nutritional treatments: High and Low, to simulate different stocking rates. Cows selected for a divergence in either carcass rib-fat depth or residual feed intake based on mid-parent estimated breeding values for those traits, were allocated in replicate groups to either High- or Low-nutrition treatments. By design, the supplementary feeding regime was the same for the High and Low genetic lines to ensure genetic differences were not confounded with management differences. Animal productivity results from the experiment were used as input data to evaluate the economic performance of the four genetic lines under the two nutritional treatments. Two methods were used; the first was a gross-margin calculation of income minus variable costs as AU$ per breeding cow for a 1000-cow herd; the second was a whole-farm linear programming model maximising the gross margin. Stocking rates were optimised by matching the energy requirements for the whole herd with the energy available from pasture and supplementary feed on a representative 700-ha farm. Using the two methods of calculating gross margin (per cow and optimised per hectare), including examination of sensitivity to changes in prices of cattle and supplementary feed, the present study demonstrated that genetically leaner cows due to selection of low fat or low residual feed intake, had gross margins superior to those of genetically fatter cows. They generated more income by selling more liveweight due to heavier weights and higher stocking rates. The results are affected by the management system utilised and some confounding with growth (leaner genetic lines had higher growth estimated breeding values), but will assist producers to make more informed decisions about how to manage animal breeding and nutritional interactions.


2020 ◽  
Vol 60 (3) ◽  
pp. 423
Author(s):  
Susan M. Robertson ◽  
Michael A. Friend

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.


2010 ◽  
Vol 50 (6) ◽  
pp. 573 ◽  
Author(s):  
B. A. McGregor ◽  
W. D. English

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.


2014 ◽  
Vol 54 (10) ◽  
pp. 1625 ◽  
Author(s):  
S. R. McGrath ◽  
J. M. Virgona ◽  
M. A. Friend

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.


1985 ◽  
Vol 10 ◽  
pp. 85-94 ◽  
Author(s):  
T. H. McClelland ◽  
R. H. Armstrong ◽  
J. R. Thompson ◽  
T. L. Powell

AbstractFollowing the evolution of the “Two Pasture System” of hill sheep management by the Hill Farming Research Organisation (HFRO) at their Sourhope and Lephinmore stations, the model was adopted by the Agricultural Development and Advisory Service at Redesdale experimental husbandry farm (EHF) and by the Scottish Agricultural Colleges at the West College Hill Farm of Kirkton in West Perthshire. At the time, the ADAS Pwllpeiran EHF in mid-Wales was engaged in an exercise based on the traditional Welsh management system in which ewes are kept on enclosed better grazings from tupping until after lambing and then ewes and lambs are summered on the hill.The paper describes the developments at Sourhope, Redesdale, Kirkton and Pwllpeiran from the mid/late 1960's until the present time (1980 for Kirkton). The four farms differ considerably in climate, topography, soil type, vegetation and size. In all cases, however, between 20-30% of the total resource was subjected to some degree of pasture improvement over the course of the development. In the case of Kirkton and Sourhope, 9% of the resource was reseeded, whilst at Redesdale the corresponding figure was 17%. At Pwllpeiran, most of the improvement involved surface treatment but of a fairly costly nature almost equal to that of reseeding.In all cases, the improved pasture was used to provide ewe and lamb grazing during lactation and ewe grazing around mating and lambing. Supplementary feed inputs per ewe during late pregnancy increased significantly on all farms. There was an increase in ewe numbers carried, being 99, 139, 42 and 3% greater for Sourhope, Redesdale, Kirkton and Pwllpeiran, respectively. Weaning percentages (lambs weaned per 100 ewes put to the ram) also increased, by 26, 48, 48 and 36% for Sourhope, Redesdale, Kirkton and Pwllpeiran, respectively. Taken together, there was a significant corresponding increase in the number of lambs weaned of the order of 121, 297, 129 and 47%.Lamb weaning weights were improved in all cases in spite of increased twinning. This weight increase was most significant at Pwllpeiran where a major effort had been made to change breed type with the specific purpose of producing a heavier lamb.Gross margin data were available for Sourhope, Redesdale and Kirkton and when plotted on a per ewe and per hectare basis follow remarkably similar pathways over the development for the three centres. The gross margin figures per ewe, when discounted to base, show no significant increase and in some cases were reduced up until the introduction of the EEC sheep meat regime in 1981, after which time significant real increases occurred for those developments still in progress (Sourhope and Redesdale). The real increase there occurred as a result of increased stocking rate. On Pwllpeiran, however, where stocking rate increase was low, it is still considered that the exercise was profitable as measured by Internal Rate of Return.The various increases confirm that investment in land improvement, coupled with an enlightened approach to sheep management, has improved the overall efficiency of pasture utilisation and economic viability.


1990 ◽  
Vol 12 (1) ◽  
pp. 3 ◽  
Author(s):  
AJ Meppem ◽  
PW Johnston

A simulation model of a grazing enterprise was used to examine the economic risk associated with stocking rate decisions in the mulga lands. The model used historical daily rainfall records for Charleville (1890 - 1984) as input for determining annual pasture production. Stocking rates were set each year at the end of summer to utilize a portion of the available forage. Gross margins were determined for a total of six levels of pasture utilization (20% to 80%). The simulation results support the hypothesis that higher levels of pasture utilization lead to consistently lower pasture yields, and greater variability in income (high risk). To reduce risk, this simulation study suggests a more conservative use of the pasture. Optimum levels of pasture use therefore need to be determined; both from an individual graziers requirement to meet short term needs, and society's preference for long tern conservation of the pasture resource. This requires the ability to identify the direct benefits and costs of different levels of pasture use. This study has indicated the value of simulation in examining these costs and benefits.


2010 ◽  
Vol 50 (1) ◽  
pp. 6 ◽  
Author(s):  
Karel Mokany ◽  
Andrew D. Moore ◽  
Phillip Graham ◽  
Richard J. Simpson

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.


Author(s):  
C.L. Crabbe

The integration of dairy beef with daitying in the southern South Island is a successful means of increasing stocking rates to maximise pasture utilisation when an increase in dairy cow numbers is not practical or economic. However the 1987-88 gross margins illustrate the vagaries of the beef market and the significant effect the schedule can have on the viability of integrating dairy beef even though there was considerable optimism at the start of the dairy season. In previous years the gross margin for bull beef, when the schedule has been about $2.OO/kg was closer to $lOOO/ha During the past season the nursecow option looks the most favourable in economic terms, allows for more management flexibility than bull beef and achieves the aim of maximising pasture utilisation. Keywords: dairy beef, dairying, bull beef


2021 ◽  
Vol 21 ◽  
pp. 135-141
Author(s):  
A. H. Ndubuisi ◽  
E. O. Otchere ◽  
A. O. Ogungbile

A survey to determine the economics of traditional cattle production among agropastoralists was carried out in Giwa Local Government Area of Kaduna State. The survey covered 75 agropastoral households grouped into three categories viz: CI, CII and CIII for  livestock activities and two groups GP1 and GP2 for cropping activities. The analytical framework used in the study include simple gross margin and multiple regression analysesResults of the study indicated that 66.67% of the respondents have lived in the study area for up to five years. Total variable cost (TVC) varied with the size of herd. TVC averaged N958.72/LU for CI, N818.48/LU for CII and N561.29/LU for CIII. The agropastoralits were making some profit in both livestock and cropping actiVities. Gross margin/LU averaged N967.28/LU N1,118.93/LU and N1,344.93/LU for farmers in CI, CII and CIII, respectively. The gross margins in cropping activities were N372.24/ha for GP1 and N480.18/ha for GP2. Inputs identified in cattle production were relevant in explaining variations in output. There was a decreasing return to scale in cattle production. There was also an inverse relationship between unit cost of production and size of herd. The above results indicated that a substantial increase in the income of the farmers was possible. This could be achieved through integrated crop/livestock productionproper herd management and adequate provision of supplementary feed for dry season cattle production. 


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