defa agricultural advisory service welcomes you to 2011 spring beef focus meeting. thanks to: geoff...

DEFA Agricultural Advisory Service

Welcomes you to

2011 Spring Beef Focus Meeting.

Thanks to:

Geoff & Eric Taggart

Marty & Milan Veterinary Practice.

House Keeping

Bio-security – please use the footbathsToilet facilities are available – please use themNo smokingPlease respect others that may be trying to

listenMobile Phones – silent. Careful on exiting – fast part of the road.

Hope to take no more than 20 mins per session and we aim to finish by 3pm.

Agenda

Profit = (Pvolume x Pvalue) – Pcosts (P= Product.)

Grading analysisNutrition –rationing cattle to help meet your target weight and finish

level.

EBV’s- Understanding what they mean and using them practically in the herd to your advantage

Herd Health – Marty will talk about whole herd health, pneumonia in finishing cattle and dealing with calving difficulties

Suckler herd fertility – why this is important

Understanding your costs.

Grading Analysis

Grading Analysis

Has this kind of information been useful?

There are weaknesses• Spec is only measured as grade and not weight• Doesn’t indicate % of value gained• Doesn’t cost out the changes – only indicates the

potential income.

Developed further with the new matrix.

GRADING ANALYSIS

Proportion in spec and in the correct weight band 52% £650.66 per beast

Average Proposed Payment (assuming £2.50/kg) 92.9% £58,559 (net of weight deductions)

Potential impact of moving from grade O+ to R £1,085 1.9%

Potential impact of moving from grades 4H / 5L / 5H to 4L £2,473 4.2%

Potential impact of moving from grade O- to O+ £0 0.0%

Potential impact of moving from fat class 2 to 3 £251 0.4%

Total potential value available £4,799

Per head £53.33

Measure Progress

Grading Analysis

Grading Analysis

Important – Grading analysis Indicates

– May not be absolute especially with values.

– Need to check your own data.

– Does not guarantee improved total farm profit.

– What does this mean to me? More or less £?

Grading Analysis

In Conclusion:– To understand if change is needed and if so what

changes are needed we must know where we stand today.

– The more we know, the better the decision we can make.

– Grading analysis is free, confidential, IoMMeats will be taking it forward.

– In the mean time ask us for your own data.

Suckler Herd Fertility

Profit = (Pvolume x Pvalue) – Pcosts (P= Product.)

Calving per cow/heifer put to the bull 95%

Barren Cows 5% or less

Cows Calving in first three weeks 65%

Bulling period – 9 weeks for cows 6 weeks for heifers

Calf Mortality (birth to weaning) <2%

Calves reared (per cows bulled) 94%

Adult Cows with difficult calvings <5%

Suckler Cow Fertility

Why is suckler cow fertility important?– Reduce Costs (Pcosts)

– Increase output (Pvolume & Pvalue)

2010 of the herds involved.• Weaning rate ranged by 24% (best to worst)

• 16% less than target of 95%

• Calf mortality ranged by 11% (best to worst)

• 9% worse than the target.

Suckler Cow Fertility

Reduce costs?– No over feeding/under feeding– Reduced labour– Reduced vet (cows & Calves)

Increased output?– More calves weaned– Heavier calves weaned – worth more?– Increased heifer selection– Improved cattle management

Potential income lost?Herd Size

10 20 30 40 50 70 100

Weaning Rate %

100 £4,000 £8,000 £12,000 £16,000 £20,000 £28,000 £40,000

95 £3,800 £7,600 £11,400 £15,200 £19,000 £26,600 £38,000

90 £3,600 £7,200 £10,800 £14,400 £18,000 £25,200 £36,000

85 £3,400 £6,800 £10,200 £13,600 £17,000 £23,800 £34,000

80 £3,200 £6,400 £9,600 £12,800 £16,000 £22,400 £32,000

Effect of % Lost production

24 £960 £1,920 £2,880 £3,840 £4,800 £6,720 £9,600

16 £640 £1,280 £1,920 £2,560 £3,200 £4,480 £6,400

5 £200 £400 £600 £800 £1000 £1400 £2000

Total potential income based on calves valued at £400 hd.

£96/cow

£20/cow

Calving Pattern

Advantages of a Compact Calving Pattern

Labour– Less time supervising – Fewer late calvings reduces risk of more difficult calvings– Management operations on bigger batches.

Disease

Reduces risk of disease spread

Herd fertility

Improved service rate Weaning Weight

– Calves born earlier are heavier at weaning

Marketing

Even batches of cattle

Sold earlier & heavier Replacement heifers

– More to select from.

Reduced value of calf Calving period Weaned weight Calf Value Target Actual

3 weeksAve Kg (DLWG

1.3kg) (weight x £1.5kg) Number Value /£ Number Value /£

1 300 450 581 261,495 350 157,500

2 270 405 224 90,518 264 106,920

3 250 375 63 23,468 120 45,000

4 220 330 27 8,851 88 29,040

5 190 285 0 0 27 7,695

later 150 225 0 0 45 10,125

Total 894 384,331 894 356,280

Per Cow 970 396.2 970 367.3

£ Improvement per cow calved £31.4

£ Improvement per cow mated £28.9

£ Improvement £28,050.6

Are we adding this up?

5% below 95% target weaning rate =£20Average calving pattern £29Already we’re at £49 per cow mated.Calf mortality £36 per cow (£85 cow)

Herd Size10 20 30 40 50 70 100

Mortality Rate

%

1 £40 £80 £120 £160 £200 £280 £400

2 £80 £160 £240 £320 £400 £560 £800

3 £120 £240 £360 £480 £600 £840 £1200

4 £160 £320 £480 £640 £800 £1120 £1600

5 £200 £400 £600 £800 £1000 £1400 £2000

9 £360 £720 £1080 £1440 £1800 £2520 £3600

11 £440 £880 £1320 £1760 £2200 £3080 £4400

Key Areas

What’s involved?

Free, confidentialForms can be down loaded from

www.gov.im/daff/animals/cattle/advisory.xmlTakes an hour (approx)Contact the DEFA Advisory ServiceWhat’s stopping you?

http://www.gov.im/daff/animals/cattle/advisory.xml

Conclusion

Profit = (Pvolume x Pvalue) – Pcosts– Increased volume– Increased value– Reduced costs

– Understand your own performance and the reasons for it.

– No one has mentioned when you should calve just that there is a benefit to improving fertility and calving in a tighter period.

Managing Costs

Managing CostsThe beef price needs to be higher…..We need more……How much more do you need?More.What effect will that have on your profit margin?It will get biggerOK. What was your average beef price last yr?Don’t know.What is your profit margin Now?Not sure, but it’s not enough!

Managing Costs.

Profit = (Pvolume x Pvalue) – Pcosts

Pvolume – Kg’s sold/produced

Pvalue - £ sold for.

Pcosts – Fixed and Variable

What Influences these three P’s?

Raises the Q’s – how am I doing, could I do better, what if I reduce/increase?

Product Volume

Influences?– Stocking rate

• Volume of Feed grown and utilised– Grass/feed/purchased feed Pcosts

• Weaning rate– fertility

• Growth Rate– Daily live-weight gains (DLWG).– Time to slaughter

Product Value

Influences?– Market – volatile

Product Value

Timing of Supply– Target seasonal trends– Contract & fix a price

Hitting Market RequirementsEven batches (store)Health Status

P Costs

Costs can be larger than Pvolume x PvalueIncome (value) does not always keep up with

increasing costs.

Forage Telephone

Concentrate Water & rates

Vet & Med Property repairs

Sundry costs Property investment

Running Machinery Labour

Replacing machinery Rent

Contractor Finance

Electricity

NI 2007/8 (ranked by net profit)

£1.24 per kg

300kg carcass =£372

£0.10 per kg

NI 2007/8

£450 per cow.

Choice or Chance?What Else?

– IoM Meat – DEFA & CCS £– Weather

Options:– Carry on regardless – Carry on knowing we are doing OK– Change– ?

In Conclusion

Profit = Pvolume x Pvalue – Pcosts

Profit – Choice or Chance?

Manage what we can control

Understand current performance and ask “what does this mean for me?”

We are here to help. 685835.

Improved Margins Through Breeding

The breeding, or genetic merit of beef cattle will significantly affect the way that:

– 1. the animal is born

– 2. the animal grows

– 3. the animal goes to marketAnything that affects all of these things will also

affect profitability


Cow herd genetics are relatively set, and slow to change

Fastest improvement in genetics of herd through sires

Bull/sires are 50% of herds – what is that worth?

Using “eye” only - educated guesswork

Using “eye” and EBV’s – more informed choice


EBV = Estimated Breeding Value

Uses recorded figures for whole family and predicts the animal’s genetic merit for that trait

Pick the traits that best suit your herd, your farm, and your intended markets

EBV’s help identify within breed differences in potential


1. the animal is born

EBV’s which will help predict the way a beef animal is born

– Calving ease – high positive scores (%) means more calves out alive and less assisted calvings

– Gestation length – (days) negative scores mean shorter gestations, and easier calvings

– Birth weight – lower values (Kg) indicates calves which are lighter at birth, and likely easier calvings


2. the animal grows

EBV’s which help predict how the animal will grow– 200 day weight (Kg) – early growth potential– 400 day weight (Kg) – yearling weight

potential– 600 day weight(Kg) – animal’s growth beyond

yearling and towards finished age


3. the animal goes to market EBV’s which help predict how an animal will kill out

– Carcase weight – genetic difference in carcase weight (Kg) at standardised age 650 days

– Eye muscle area – more positive figures indicate better muscling on a 300Kg dressed carcase

– Rib fat – higher positive figures suggest an animal with more subcutaneous fat and earlier maturity

– Retail beef yield – boned out meat yield as a % of boned out 300Kg dressed carcase. Higher positive figures suggest higher percentage yield


“So what, EBV’s been around for a long time, it won’t make that much difference anyway”

Maybe not before, but now could easily be 30p/Kg DW (£90 per head on a 300Kg carcase) or more difference between in and out of spec

New proposed pricing grid, using EBLEX prices for week ended 16th March 2011 (All steer price 154.27p/Kg LW)


2011 Beef Payment Matrix

1 2 3 4L 4H 5L 5H

E 70% 95% 105% 105% 70% R R

U+ 70% 95% 105% 105% 70% R R

-U 70% 95% 100% 100% 70% R R

R 70% 95% 100% 100% 70% R R

O+ 70% 90% 90% 90% 70% R R

-O 70% 70% 70% 70% 70% R R

P+ R R R R R R R

-p R R R R R R R


It’s only a few %, why worry?1. – it’s what’s in the long term interest of your business by supplying what the customer requires

2. – it’s a much stronger pricing signal than before, with bigger rewards and bigger deductions for being in, or out, of specification

Old deduction for fat class 2 vs. fat class 3 = 3p/Kg = 1% of 255p/Kg base price


2011 Beef Payment Matrix

1 2 3 4L 4H 5L 5H

E 196(-84) 265(-15) 295 (+15) 295 (+15) 196(-84) R R

U+ 196(-84) 265(-15) 295 (+15) 295 (+15) 196(-84) R R

-U 196(-84) 265(-15) 280 280 196(-84) R R

R 196(-84) 265(-15) 280 280 196(-84) R R

O+ 196(-84) 250(-30) 250(-30) 250(-30) 196(-84) R R

-O 196(-84) 196(-84) 196(-84) 196(-84) 196(-84) R R

P+ R R R R R R R

-P R R R R R R R


Use EBV’s to pick the best traits within a breed to suit your needs – herd, farm and markets

Keep it simple– 1. the animal is born


– 3. the animal goes to market

Improved Margins Through Nutrition

What you feed to beef cows and beef cattle will have a major effect on the way that:

– 1. the animal is born


– 3. the animal goes to market


Questions to ask:

Know what you’re feeding

Know why you’re feeding it

Know how much it’s costing you to feed it


1. the animal is born

The way in which the cow is fed from pre-mating, and throughout pregnancy will have a significant effect on the number of calves born, the difficulty of calving and the early life viability of the calf

Know what you’re feeding, why you’re feeding it, and how much it’s costing.


Analyse all of your forages, and USE those analyses to make up rations to suit what the animals require

Silage 1 Silage 2

Dry Matter 20% 31%

ME 9.8 11.1

Crude Protein 9.3% 13.5%

30Kg/head/day to 600Kg spring calving cows

Energy under-supply: -30%, Protein under-supply: -2%

Energy over-supply: +50%; Protein over-supply: >+100%


2. the animal growsThe most influence, in the shortest period of time,

on weight and grade of beef cattle will come through nutrition

Start planning BEFORE weaning

Manage heifer calves and steer/bull calves in separate groups BEFORE weaning


Example of manipulating weight and grade in growing period through nutrition planning:– Common issue – underweight, overfat heifers

Time to address it – NOT in finishing period, have to tackle earlier

Separate cows into heifer and bull calf management groups, limit amount of creep feed to heifers

Formulate post weaning ration to limit growth rates, maximise growth of lean tissue and bone, minimise fat deposition until at least 10 months/320Kg liveweight


3. the animal goes to market

The final carcase weight and fat class of any beef animal will in combination with it’s genetic potential be mostly determined by it’s nutrition

The new level of rewards and deductions for being in or out of specification make it worth spending a little bit more time on getting the nutrition right to get the right grades


Example of manipulating weight and grade in growing period through nutrition planning:– Common issue at slaughter – continental cross

steers being overweight and/or underfinishedKnow what you are feeding in your finishing diet,

why you’re feeding it, and how much it’s costing you

Over feeding (expensive) protein, and underfeeding quality or volume of energy in the finishing period will promote lean growth, especially in high genetic merit cattle


Two finishing diets for 500Kg steers

Diet 1 Diet 2

Good quality silage 20Kg 20Kg

Barley 1.50Kg 2.70Kg

Peas 0.50Kg 0.0Kg

Cost per kg gain £0.93 £0.64

Energy supply for 1.0Kg DLWG

Under supply 10% Adequate supply

Protein supply for 1.0Kg DLWG

Adequate supply Adequate supply


Keep it simple– 1. the animal is born


– 3. the animal goes to marketKnow what you’re feeding, why you’re feeding it,

and how much it’s costing youManipulate rations to get what YOU want to meet

market requirements

defa agricultural advisory service welcomes you to 2011 spring beef focus meeting. thanks to: geoff...

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