PEI Cattle Producers AGM March 31, 2010

Business management Alternative feeds Improving traditional home grown feeds Management tips Government programs

Al Mussel – George Morris Centre Regardless of farm size, type or province

business management expertise is key to profitability.

Larger not always better 1995-2003 Farm cash receipts ^26% but

operating expenses ^40% - not sustainable.

Production Marketing Financials

People are good in one or two areas but not all three – personality types.

Must control all three areas equally well If not the business is set up to struggle

even in a good economic climate and a high probability to fail in tough times

Trinity of Management

Have to know your margins - details Article in Cattlemens

◦ Steve Kenyon – Gross Margin Analysis Don’t need to be an accountant Need someone to take an interest in the

books. Knowing COP is not sufficient – need details

of revenues and expenses to determine where improvements can be made.

Corn based Home grown or custom grown- ROI Not cheap crop to grow – fertilizer vs

manure◦ Corn silage – background/finishing◦ Cob meal/snapplage – specialized equipment◦ HMC – kernel corn 30% moisture

Processing for storage – rolled Higher energy availability than dry corn Funding programs for co-op equipment sharing

◦ Dried corn – cost of drying

Oilseeds Soybean, canola, crambe, flax, camelina Potential to brand beef around these?? Pressed - high oil 12% vs 2% Protein supplement - 30 – 40 % CP High E – from oil rather than starch Limits inclusion rate – 4 lbs/hd OD on protein

Silage corn or grass/legume (40% legume) Timing of cut is critical – weather related Not as early as dairy – within a couple of

weeks. (13 – 16% CP) Save the best for most demanding periods

◦ Cows close to calving, creep feed calves Feedlot

◦ Good quality silage 3.5 – 4.0 ADG with less grain

Round bales – bale slow to squeeze air out Plastic 4 -6 layers min – pest issues Chopped silage – Plastic -seal, cover or open Seal 7 - 12:1 ROI Cover 5 - 7:1 ROI Open DM loss (7- 5%)-Acres, fuel, time etc Heat damage locks up protein and E – ( ADG

0.75–1.0 lb) – top portion, compost–toxic soup

Crossbreeding system – premium feeder calf◦ (Bluewater blacks, Bruce Peninsula Calf Club – Ch x)◦ Improved conception, calf survival, weaning wt, and

life of the dam, well framed high muscled feeder. ◦ Hybrid vigour

Require – management skill set, record keeping, pasture management, use of health protocols and marketing plan

Costs - $20 - $40 /hd – (fencing for extra pastures, purchase of F1 heifers, health protocols)

Net return - $120 – 180/calf when marketed

as reputation feeders.

Ch x sale – 2009 ◦ 570 lb av @$700/hd st/hf ◦ $125 above Ontario price

PEI Herd Health program is based the Ontario calf club program which is self financed from premium prices and a 67 lb increase in wwt.

PEI – offer $40/cow-calf pair Whole herd program – cows, calves, bulls

◦ $160,000 Incentive for handling system

◦ $60,000 Offer incentive for heifer retention

◦ $100,000

Reduce late born calves Compress by 30 days - 65 lbs per calf Require herd nutrition overhaul, herd health

program, record keeping to cull cows not performing, breeding soundness of bulls each year

Net return - $30 – 60 /calf

Early age – reduce stress vs older age calf Option to implant on grass Castrate older calves – lose 2 weeks growth

and feedlots discount if not healed completely

Net return on male calves – $15 - $20 If you wean, vac, dehorn castrate at same

time the vaccine will be virtually useless. If you vaccinate calves in poor nutritional

status the vaccine is virtually useless

Creep feeding - $20 - $30 /calf Superior herd sires - $15 - $18 /calf from a

sire considered to be breed average Superior sire - $35/hd cf to non evaluated

sire Dehorn - $15 - $20 – feedlots discount Grazing management – extra 15 – 20 lb wwt

◦ Degrees of intensive management◦ Fencing, sward renovations, fertility - lime

Nutrition program – E/CP/Min OTM Reduction strategy

◦ Feeder type, time to full feed, energy to finish Largely about sourcing high margin feeders Record keeping

◦ ID high margin feeders◦ $15/hd return for individual vs group

management◦ Grid marketing - $5-10/hd advatage◦ Return of info to cow-calf - $50/hd return◦ BIXS information gateway CCA

What Will Not Doing These Cost You (and your customers)..........

1.Horns – 5 cents2.Bulls – 5 to10 cents3.Stags – 10 to25 cents4.Uniformity + 5 to 20 cents5.Type + or – 10 to 50 cents6.Vaccination + 5 to 10 cents

Critical time periods – 3rd trimester, after calving, rebreeding etc

Current research – all important From nutrition focus – check body condition Developing fetus – day 1 to birth is critical Deprive dam of protein in late gestation –

calf could have slow immune system, heifers have impared repro tract.

Deprive dam of E and CP early and calf will be predisposed to a number of problems – genes turned off and locked ◦ Males, lower ADG and carcass wt◦ Females – lower reproductive efficiency◦ Set them up to develop age diseases much earlier in

life◦ Mechanism that silences the genes is inherited

for at least 2 generations. ◦ Reduce nutrients in early-mid gestation, decrease

secondary muscle fibres ◦ Reduce in mid-late gestation decrease muscle fibre

size and marbling

AgriInsurance◦ Crop Insurance◦ Livestock Insurance - 2011?

AgriStability – no need to incur extra acct fees

AgriInvest – 1.5% ANS ◦ Double you money almost immediately◦ No strings to take out

Food safety, biosecurity & traceability◦ VBP - RFID readers

Environment ◦ ALUS, Stewardship, EFP

Business Development ◦ Self assessment, skills, financials, planning,

training Innovation & research

◦ Project funds Future Farmer program Organic industry development program

Cherry pick which options work on your farm

Gather information from variety of sources Producer clubs are a great avenue for

information gathering. Local or regional – Sean Firth working on regional basis to market feeders through Truro.

Measure it to Manage it

Infrastructure $ for Co-op equipment purchases for sharing.

Infrastructure $ for improved feed storage Premium payments which could see $ for

program type cattle with a direct premium paid to cow-calf producer.