When I was commencing my agricultural degree, one of the subjects we were required to study was agricultural paradox. The best description I have seen of a paradox involves contradictory yet interrelated elements that exist simultaneously and persist over time. I guess we see that a lot in agriculture. Situations that are incredibly important for one sector of the industry are detrimental to another.
I think drought feeding is a paradox that many producers are grappling with right now. In the first instance the greatest challenge for most producers who have chosen to feed stock is affording and sourcing feed in sufficient quantities for their stock. There’s no doubt this is a huge challenge and an increasingly difficult one.
On the other hand, I think full hand feeding is much less complicated than supplementary feeding to address quality gaps.
Why do I think it is less complicated? Supplementary feeding involves addressing a specific deficiency in pasture. Generally it’s about “topping up” protein to stimulate rumen activity. This leads to increased intake and may require a ration readjustment to add in energy as feed is consumed. To carry out a supplementary feeding program effectively requires constant monitoring and adjustment to meet changes in pasture and livestock needs and matching those to feed suitability.
Drought feeding, or full hand feeding is less complicated in many ways as the focus is on providing a complete ration. So the choice is really down to providing energy for daily animal needs, balanced with protein to ensure adequate rumen function. When there is no pasture left, full hand feeding can focus entirely on these issues and it is much more straightforward to manage.
Most of my work in the last month has been to provide advice to producers who are now implementing full drought feeding. There are a few common themes emerging that are important to share.
- Full feeding is about energy first. Energy has to be balanced with protein. Feeds should be chosen on the basis of energy. The more energy described as Metabolisable Energy (ME) per kilogram of feed the more efficient it will be to feed livestock.
- Protein supplements such as dry licks; blocks and roller drums are not designed for drought feeding. These products are designed to provide protein in situations of abundant dry feed. Quite simply these products can’t provide the energy your stock need each day. If there is little or no paddock feed then you are wasting money
- Feed should be compared on ME / kg / Dry Matter. Not all feeds are the same. If you are feeding products with low ME values, or low Dry Matter (DM) values, you will have to provide higher total daily amounts to achieve the same outcome compared to higher ME valued feeds or feeds with different DM levels.
- Test all feeds before you use them! Feed values vary enormously. A feed test is a very quick way to check the energy levels, protein levels and fibre of a product. All of these will determine how much you need to provide to each animal. Never assume that something is the same as the last load! And don’t rely on your nose or fingers! I don’t think its possible to smell energy or protein!
- Don’t guess how much to feed! There are easy ways to determine how much your animals need to eat every day. If you want help please ask me, or your own advisor. Make your calculations on those amounts. Then weigh out that amount so you know. A shovel full varies from place to place!! And don’t get me started on a bucket size! If you are going to feed at least be accurate.
- Check your feed choice is actually suitable for your stock! I’ve seen recommendations lately from some sources that are incorrect and could lead to animal deaths. There are well-published guides on feeding animals products that range from grain, to hay, silage and white cottonseed. If you haven’t used a product before, do some homework.
- Get advice from qualified experts. Not everyone really knows how to feed stock. What was acceptable in the drought of the 1960s may no longer be relevant, safe or even available now!
- Lastly don’t waste your feed! I’ve seen paddocks where stock have been fed hay and cattle and sheep are trampling on it, sleeping on it and covering it with dung. We know this level of waste can be about 30 – 35% of your daily feeding amount. So can you really afford to waste that much feed?
Droughts test your resilience and it’s important that you make sure to stop and reassess your position. Good plans need reevaluation. While drought feeding is straight forward, you need to check your feeds and amounts are correct for your stock. This is vital as animals go through production changes such as calving or when the season changes. Wet cold winter weather can have a huge impact and you need to be prepared.
Finally, if you think you need some advice, don’t hesitate to ask for it. I’ve been working with producers across NSW and into QLD over recent months. So while I am out and about its very easy to for me to come and spend some time looking at what you are doing and then talk through ideas and offer some reassurance and the chance to make sure you are doing ok.
This week I was tagged on Facebook under a comment regarding data collection. The comment referred to a practice of recording the ratio of weaning weight against dam weight. This is a comparison often used in the U.S.
I have to be honest; my initial reaction was to be a bit surprised. Not by being asked if it was a method I used or recommended. Rather, my surprise stemmed from this data itself.
I’m not saying this data isn’t useful. For some people I’m sure it could be a useful piece of data. However, for me, and for most of my clients, its not the first thing I’d be looking at when I’m analyzing a business.
In previous blogs I’ve talked about focusing on the important traits within a herd, and on the importance of using data to drive innovation. I’m still not sure that many producers are doing either of these as well as they could be.
I’m a very strong believer that making the most of your resources and investments to date is the first thing you should focus on. Too often I see producers chasing fads, pursuing new options without ever realizing the potential of their current program.
The only way you will ever realize your programs potential is to measure it and compare it over time. The measurements have to be relevant! There has to be a point in recording it.
The point of recording is to establish where you are, and then to set some plans in place to maintain or improve your position. So the whole point of recording is to focus on the resource you have!
My second strong belief is you should always grab the big wins first! To me, weaning ratio against mature cow weight isn’t a big win for most people. Its something you may choose to focus on when you’ve ticked all the big-ticket items off.
So what are those big ticket items? I know I’ve written about them before. However for a breeding program they are:
- Conception rate (number of cows pregnant / number joined x 100)
- Weaning rate (number of calves weaned / number joined x 100)
There is an important point to this. Weaning rate isn’t the number of calves weaned from the total number of pregnant cows. It’s against your total breeders joined.
There is an additional big ticket item, which is calving percentage (number of calves / number joined X 100). Again it has to be measured against total joinings.
The point of this? Well it helps you identify fertility rate in your herd. It assists you to clarify calving losses and weaning losses against your total numbers.
I’ve come across many issues that happen post preg testing. These range from mid term abortion losses to dystocia and predation. Having data helped focus problem solving onto those issues that were costing the program in a big way.
My additional big ticket items? Well I like to know the numbers of cows calving at the start, middle and end of a set calving period. If the numbers indicate a trend towards the middle and end, that highlights a real risk that cows are going into calf late. If it isn’t addressed, those cows run a risk of falling out of a 12 month calving interval.
In turn that lets me ask about weaning weights and perhaps then I may start looking at ratios. But by then I reckon we have gotten the big ticket items sorted, and now we can start selecting on individual performance.
So my question to you is what’s the point of the data you’re collecting? Is it able to be used to fix the big-ticket items? Can you use it to maximize the resources and investments you have? If it can’t, then maybe you need to re-evaluate your collection. And if you think you have the big tickets sorted, now you might be ready to fine-tune your program further with more targeted individual data.
And if you’re not really sure and you want to have a fresh set of eyes have a look, maybe its time to give me a call and get the independent assessment your business needs!
Its vey common to hear how much risk there is in agriculture. I know I hear the phrase “farming is a risky business” fairly frequently. To some degree that’s true. There are risks with the weather and the markets. There are risks associated with production from diseases and pests. There are the risks working with machinery, animals and working in isolation.
However choosing to focus on the negative side of risk is also a risk. Choosing not to do something, simply as a reaction to a perceived level of risk might actually be the wrong thing to do for your business or for yourself.
Lets face it; risk is part of life! There are risks with everything we do. The way we manage those risks depends on our experiences, our knowledge of similar or past events. It includes an appreciation of the situation and a decision to way up the possible outcomes of that response. So risk management is something we all do!
In day-to-day life making risk management decisions needs to happen in our head, and often quite quickly! However for a business, making risk management decisions on the fly, often leads to missed opportunities or costly mistakes that time and money to correct.
So how do you look at risk? How can you plan for risks and develop a business structure that is robust enough to respond to risk and capitalize on opportunities that often come along?
One of the tools I find most useful comes from the work health and safety industry. Called a risk score calculator, its basically a way to plot the level of risk to an activity or an event.
The tool plots the Likelihood of something occurring.
There are five levels, from Almost Certain to Rare.
The way I use these levels is to look at the data I’ve collected on the business. Has it happened before, is it happening often, does it happen all the time? In my mind, that’s the whole point of collecting data!
The second step is to decide what are the consequences of an event happening? Is it Catastrophic – which if you prefer is an easy way to say if this occurs will someone die, or will huge losses occur? And then through Moderate to insignificant consequences.
When you determine that level it’s fairly straightforward to decide if the risk you are considering is extreme, high, medium or low.
Effectively using this tool helps you prioritize your actions and future plans. Extreme risks are the ones you need to fix straight away.
Quite simply you need to consider what can you change to lower that risk? Is it a change to the way you operate? Is it a physical change to infrastructure? Does it require you to invest in skills and training?
Setting priorities is a huge part of risk management. You can’t do everything at once! And while there are always jobs to do, some of them are probably less important and can wait a while.
I reckon the real value of using this tool comes from actually sitting down and having a rational and objective assessment of the situation. As I said previously, your data will help you decide if the situation is likely to occur or not. The consequences of the event help set its place on your list of priorities.
I’ve recently been working with a producer using this tool to evaluate the impact of weather extremes. Their farm data shows clearly rainfall is coming in more intense events and the periods between rainfall is growing.
The pasture data shows changes in growing days as well. That data shows that it is likely they can no longer rely on certain species of temperate pastures to finish cattle for their traditional market.
The consequence of that is major impact on the business. The risk to that business is rated as High. So we have been working to develop pastures that suit the changes recorded, with more sub tropical species introduced into the mix. We have also started focusing on alternative markets so that cattle hit the specifications.
These are all big business changes. But we are making them to respond to a clearly determined level of risk. More importantly with my clients, we have a set of priorities to focus on. In sitting down to discuss the ways to respond, we were able to look at opportunities and new directions before choosing the best option for this business.
It also highlights the importance of collecting good data. I like using data to drive innovation on farm. Responding to and lowering risk needs some innovative ideas! If your data can’t help with those decisions, then you really do need to rethink how you are operating.
Over the next month I’m visiting several new clients to look at their programs and offer some advice. One of my first questions will be how do you manage risk? You can be sure we will go through this exercise and work up a few priorities!
Don’t forget if you want a hand to help set your priority list in order or to look over the data you need, I’m always happy to come and ask the questions and get you going!
“How many cows should I be running?” “Is a higher stocking rate more profitable than a medium stocking rate?” Over the last few years, these are questions I’ve been asked on occasion. Following my recent post on the basics profit drivers, a few people have approached me with similar questions.
These are questions producers have grappled with for a long time. Where is the benchmark for profitable beef production? First of all, what does it cost to produce a kilogram of beef in Australia? The latest figures I’ve seen from ABARES suggest that in Southern Australia, the cost is around $1.74 and in Northern Australia it is $1.75
Looking a little further into the data, it becomes clear that herds with small numbers are much more impacted on by costs associated with production. In southern Australia, herds with less than 100 head don’t produce enough beef to cover the costs associated with the business. Herds over 200 head are slightly more marginal. Often they break even because the business model relies on unpaid family labor!
Moving over 400 head is where the operations seem to start to become less marginal and more profitable. In northern Australia, the figures seem to be similar, with herds around the 400 – 1600 mark relying on the unpaid labor to get through and over that 1600 mark the systems become more profitable.
There is no doubt that higher numbers have a key influence on profit. It’s very hard to capture economies of scale with a small operation. However, its important to look beyond the simple argument that more cows means more profits. Increasing numbers needs to be considered fairly carefully.
I have been looking at some work on the relationship between stocking rate and profitability conducted in Queensland. These have been very interesting to read. The studies have looked at the relationship between stocking rate and gross margin for growing enterprises and for breeding programs.
The key findings from the studies include:
- Increasing stocking rate does lead to an increase in production per hectare
- However this increase is offset by lower production per head
- There is a point where increased numbers will not increase production per hectare and may actually reduce production levels
- Lower production levels per animal will lead to price reductions for fat or MSA compliance. These often reduce any increase in gross margin achieved through the higher numbers.
- Increased stocking rates increase the demand for supplements and lengthen the time period of drought feeding
- Breeding herds tend to be less efficient with lower conception rates, lower weaning rates and lighter cull cow weights
From this work it appears that increasing stocking rates to high levels offers only short-term increases in profitability. In my own experiences with producers who have pushed their stocking rates to high levels, it is a strategy that seems to increase risk to uncomfortable levels.
By that I mean increasing the risk of seasonal conditions impacting more swiftly and to a greater degree. Putting pastures under high stocking rates puts more pressure on plants and plant root systems. Without a corresponding increase in fertilisers or plant nutrition, it doesn’t take long to see pastures become sparser, composition changes and animal performance decreases.
The change in composition is a significant issue. I have been working on the restoration of grazing properties in the south of NSW that have had a long history of high stocking rates and insufficient pasture nutrition. Much of my work now is associated with programs to eliminate invasive weeds and replant desirable pasture species.
Any increase in income from more animals has long been spent on worm control, supplementary feeds and now weed and pasture work.
There is no doubt there are times when you need to manipulate stocking rates for specific outcomes. I’ve recommended it with producers planning to renovate pastures, and we have used high levels to graze pastures right off in preparation for cultivation. But that has been a short term management strategy.
I think the numbers discussion needs to be treated with some caution, and more importantly some realistic objectives. I don’t think increasing numbers in the chase for more kilograms of beef per hectare is justified if it sees your animals struggle to meet production targets.
I can’t really justify the drop in conception rates for breeders or the drop in compliance rates for sale animals just to run a few more head. So if you wanted to increase stocking rate and maintain high animal performance, you’ll most likely need to increase your fertilizer program, or your use of supplements or even both. If it requires you to spend more to make that little bit more, is it really worth it?
When I am asked about the right number of animals, or what stocking rate to consider, I can’t give a definitive answer! What I can do is to work through the opportunities to use pastures efficiently and in a way that doesn’t compromise the long term viability of pastures, ensures high levels of animal production and doesn’t increase the ability to respond to changing seasonal conditions.
So when you do look at stocking rate, take the time to look beyond the raw numbers. If you are pushing stocking rate to the point where your animals are inefficient, or its costing you more in inputs than you are producing, you need to re-evaluate your program.
In the last few weeks I’ve read several articles and discussions focused on beef production. Specifically I’ve been looking for ideas or thoughts that I can bring into practice with my clients this year. After all, my job is to work with producers to find better ways and more efficient ways to produce beef and make money.
One of the first articles I came across highlighted the huge difference between profitable beef producers and the majority of the industry. This article from Beef Central, suggests that only 2 in 10 producers is actually making money. Having read that, I was more struck by the fact this isn’t really news to me.
For some years now it has been clear that the large majority of producers are not making nearly enough money to operate a profitable business. It also seems that there really isn’t anything new in the way that the profitable operators are conducting their business. In fact the profitable producers are focused on their practices on farm to producer kilograms of red beef efficiently and profitably.
So what is everyone else focusing on? It seems the focus for the less profitable operators is on the peripheral things. For some time I have been following an on line breed discussion. The discussion is driven by participants desire to be more profitable. However rather than sharing ideas to implement on farm or in the business, the discussion is now around issues that don’t really make money.
These issues include; why does “no one want to buy cattle from our breed?” “why do people overlook us in the sale yard” “we can’t advertise the same way the big breed societies do”. I actually find reading these points a little disheartening.
It gets worse when the discussion moves towards more defensive positions. These things include “well we had a good success in the show ring”, “our carcase competition results are always very good” “people say my cattle are great”.
Its generally about then that I stop reading and go away a bit depressed. In 24 years of judging carcase competitions, I’ve never actually met anyone who has been paid because of the results of a single animal in a carcase competition. It seems a very weak argument to put forward when discussing ideas to change and be more profitable.
Finally in one of the rural newspapers I read an article by an older cattleman who wrote about his work over many years, crossbreeding animals, and his focus on feed efficiency. While these are both very important traits, I was a bit skeptical when it also suggested processors need to change their specifications to suit cattle producers. I’m not really sure that any other business would think it’s a valid point to tell the customer to change what they want to suit the producer!
So what does this really mean? I think it means many people are focusing on peripheral issues that are not the primary driver for business profitability.
In my books a profitable beef herd is a highly fertile herd. It must have not only high conception rates, it also needs to achieve those conception rates within a defined joining period. For many herds this really should be within 6 to 9 weeks.
Those cows should then be able to actually calve and rear that calve through to weaning. And then be rejoined in order to produce another calf in a 12 month period.
Having worked with many producers, across regions this is the crunch point for me. The producers who achieve these things with their cows are already achieving higher levels of productivity and profitability for their businesses.
The next key point is animal growth. Growth isn’t just genetics. It isn’t just nutrition. It is the combination of genetic selection. I think t be more specific, choosing cattle for your country! Choosing the genetics, the breed type and the animal type that suit the environment you live.
If you get that bit right you are already on the way to making nutritional management that much easier. After all if the cattle suit the country, your management should complement the animals ability to use your pastures efficiently. But if your cattle don’t suit the country because their maturity pattern isn’t quite correct, or for some other reason, you will have to spend more time juggling feed and cow condition to ensure they get into calf, rear that calf and that any progeny meet market specifications.
I know fertility and growth (from both genetics and nutrition) has a direct link to business profitability. Its pretty clear from lots of industry studies, the herds that produce more kilograms of beef per hectare are the more profitable herds.
What I don’t really get is if it is so clear, why do we ignore these areas to focus on the peripherals? I’d get it if a producer was ticking all the boxes in fertility, in growth, in nutritional management. If the were I would see that they were selecting animals for market specifications and selling tem to capture the value those animals are worth. In effect, if you tick all the boxes it opens up the peripherals to explore and extract a little more value.
I know some producers will be defensive when they read this. I’ve heard it in comments such as “my cattle are fertile” “Its a very fertile breed”. My response is how do you know? I know not everyone pregnancy tests. I know that not everyone selects for females that go into calf early in the joining period. I know that many cows are joined for longer than 3.5 months.
So what does it really mean? This year I’m challenging all of my clients, old and new to look at the basics objectively and honestly. To make sure we are ticking the boxes. The peripherals that distract many in the industry won’t play a part in our decisions until we get the boxes ticked. I’m actually excited by this! I’m confident it will set my clients up to either become part of, or remain well within the profitable sector of the industry.
Don’t forget if you’d like to step up and take the challenge, I’d love to hear from you!
I think pregnancy testing is one of the most powerful insights you can have into your breeding herd. I’ve been offering pregnancy testing for the past four years. In that time I’ve come to look at pregnancy testing as not just a service that I can offer. I’ve come to value and appreciate the opportunity testing offers to evaluate a lot of management strategies in each herd I visit.
So why preg test in the first place?
I do have producers who tell me they don’t need to preg test. The reasons vary. Some people won’t because the think its too expensive. Others because they feel their fertility levels are spot on and pregnancy testing wont do much to change their fertility. I’ve also had other people tell me they are yet to be convinced in the need to test.
So lets think about the reason why you would test. At the very basic level, pregnancy testing allows you to determine the number of calves you expect to be born each year. The profit of any beef herd is driven by the kilograms of beef produced per hectare. Having live calves on the ground to grow and sell directly influences profit.
Unlike a sheep flock where the ewe will grow a fleece that can at the least offset, and hopefully exceed the costs associated with her management and maintenance each year, you cant shear a cow! You can’t cover her costs in any other way unless you sell her or she produces a calf to grow and sell.
In my mind the first reason to test is to make plans based on the number of calves you expect. It also lets you assess the cows that are not contributing to the productivity and profitability of the business. The ones that are not pregnant and will consume feed that really should be offered to the productive females first!
So what about these excuses not to test? The first is that it’s too expensive. I know my testing rates per head are less than a cup of coffee. For that price you receive information that allows you to plan the year ahead, and to save a lot of feed on non-productive females.
I actually calculated a price to feed non-pregnant females recently using some oats and hay. Based on the NSW DPI Drought Feed Calculator, I worked out the cost of feeding a cow and calf. The results were really interesting.
Basically a 550kg cow with a calf at foot would eat 9.68kg of Dry matter a day. Based on the cost of grain and hay, this would cost you $2.16 / day or $65.00 a month. So in my head, spending less than $4.00 would allow you to save the cost of feeding a non-productive female.
More tellingly, you could choose to feed that non-productive female and sell her into the market at a slightly higher value. Either way, I reckon it’s still pretty cheap to test and a better way of making a decision than waiting until calving and seeing how many calves are on the ground.
What about the people who think their fertility is spot on?
I saw an interesting slide yesterday from another consultant. It said, 80% of farmers think they are in the top 20% for production. That may be true. Having tested a lot of cows now, I know that many people overestimate their fertility levels.
In my mind, fertility isn’t just cows in calf. It’s also about knowing when your cows went into calf.
Productive and profitable cows are cows that can repeatedly conceive, calve and rear a calf every 12 months. In practical terms this can be hard to achieve. With a cow’s pregnancy lasting for 282 days, it takes a cow in average condition around 40 days to return to oestrus. So there are really only about 2 heat cycles left in the year to go back in calf.
You can select for females that are more fertile. Basically by selecting the ones that go into calf earlier in the joining cycle. This not only means you hit the target of a calf every 12 months. It also means that her calves are born earlier, and will be heavier at weaning and at sale time. It also means your replacement females will be heavier at joining and more likely to go into calf and successfully rejoin next time around.
I reckon the opportunity to make these decisions and evaluate each cow on its fertility is incredibly powerful. Personally I love the opportunity to collect this data and talk at the crush about the options for management of dry cows, which heifers to select as replacements, and to discuss herd health strategies. In fact the chance to do this in the yards as the cows come through shapes and focuses many management decisions for the remainder of the year.
For me, the next two months will see me in yards all over NSW testing cows and planning to use the results to make some more money. If you are still tying to decide if you should test, all I can say is that one test is much cheaper and more powerful than a cup of coffee!!
One of the more rewarding jobs I’m asked to undertake for producers is to select their replacement females. The rewards for this job come in various ways. Firstly it’s great to be trusted to make decisions that will impact on the long-term direction of a herd. Secondly, I find a great deal of satisfaction in participating in a process that has a direct impact on the financial returns from a breeding herd, not to mention influencing the overall productivity of that herd.
I’m often surprised in the way many producers approach selection. I often encounter herds that have only one criteria for selection, which is that cows must have a calf every year. Now there’s certainly nothing wrong with this criteria. But that’s only one area to consider.
So what should you consider during selection?
Structural soundness is fundamental in a herd. The ability of your cattle to walk and forage directly impacts on their individual performance and on your herd’s productivity. Cattle that have poor leg structure suffer from arthritis; are prone to lameness and find walking distances to access feed and water more difficult, especially as they get older.
The flow on effect of this is a reduction in the ability of individual cows to meet their feed demands for maintenance, growth and production. Cows with a lower condition score at calving take longer to start cycling again. A late cycle puts the cow further behind in calving, and this cascades to a point where she may have only cycled once in the 12 week joining period.
Her ability to deliver a calf unassisted is also impacted on by structure. The angle between her pins and hips has a direct influence on calving ease, as does the width between her pins.
Teat size and udder structure are also important in the structural assessment process. Achieving the genetic potential of your calves to gain weight to weaning is greatly dependent on the cows milk supply. Poor udder attachment, badly sized teats are common causes of everything from poor suckling to mastitis and reduced milk production.
Maturity pattern should be a focus in selection. In the back of your mind you need to consider if the cattle you are producing will have the right level of fatness for your target markets. But you also need to think about the cows and their energy demands. Larger framed, later maturity cows require more feed, and if you don’t have the feed to met those demands you will either have lower fertility levels, or you will have to run less cows.
It’s equally important to have an even group of cows. Evenness will help you manage feed supply to your cows more effectively. You will find the process of managing joining and calving more efficient than if you are trying to juggle the different needs of big and little cows.
Lets not forget that having a range of cow sizes will also mean a range of weaner sizes. If you are trying to manage for a drought, not to mention hit a specific turn off time or weight, various sized weaners will cause you no end of headaches.
The Other Traits
Temperament is one of the most important traits to select for. I really don’t like cranky cows, flighty cows, or those cows you just can’t trust! Selecting out the quieter, less nervous cattle will improve your handling experiences, for both you and your cattle!
And never forget that quiet cattle produce a quieter calf. This in turn that is directly related to their eventual eating quality.
I also use the time to select for those cattle that have the traits that add value to your turn off. I try and select cattle that have superior growth for age (within the maturity pattern suitable for the area), and for cattle that display a higher degree of muscularity.
Can you put a price on it?
Its actually not that hard to put a price on the benefits of improved selection. Not so long ago I ran a comparison on a clients herd. I looked at the impact selection had when we changed operations to keep cows in the herd for 2 more years, and to tighten calving from 16 weeks to 12 weeks.
Focusing on an early maturity pattern did help us tighten joining. We also managed nutrition more effectively during joining so that the cows were on a rising plane of nutrition.
These changes impacted a number of areas across the herd. It changed the number of replacement heifers we were keeping, changed the age structure slightly in the cow herd, and changed the value of the weaners being sold. The value story was interesting as this was the influence of having a greater number of cattle at a similar age and weight, rather than smaller numbers across a couple of different weight categories.
When we I ran the numbers I found we had actually increased the gross margin by 19%! That was a huge lift in productivity and profitability, and we really hadn’t done anything other than change some selection criteria.
Now this was a pretty big shift, and I reckon not everyone will get a huge lift. Although there are gains to be made trough the sale of more surplus females, tightened joining, improved time management and so on.
Ultimately I reckon it proves that focusing on these traits is financially worth doing. And as someone who enjoys doing this work, I’ll always be happy to come and do it for breeders. Its one job I know more than pays for itself!
Over the past few years I’ve noticed growing interest from many young people keen to make their careers in agriculture. It’s exciting to see so much enthusiasm and excitement about cattle, cropping and agriculture in general. I think it’s a great to see people with passion and excitement looking to make their careers in the industry.
I’m often asked for some tips and advice from young people taking their first steps towards an agricultural career. I know every job is slightly different, and every person approaches situations from a slightly different level of skill and ability, but I reckon there are a few basic tips that might be applicable to anyone heading out to the stations.
There are plenty of tips for young people heading out to stations. One of the best is from the regular blogs that are shared by the stations contributing to the Central Station Blog. So if you are keen to make your way, check those tips out as you prepare. Having said that, a few things have struck me and I think are worth sharing as well.
Tip 1: Be polite and courteous! You’d think that would be a given! But a lot of people these days seem to believe that a resume with their educational achievements and previous employment is all that is needed to secure a position. Actually, your manner and your interaction with your new employer carries so much more weight than the CV. I reckon its important to remember that the opportunity to start your career shouldn’t be taken for granted. Appreciate the opportunities and be respectful of the working environment you hope to enter.
Tip 2: Present yourself well & look after your gear: As much as we would all like to believer that appearance isn’t everything, how you present yourself is often seen as reflection on how you care for yourself and any of the gear you might be trusted with. If you are prepared to take a little time to be neat, tidy and care for yourself, it indicates you’re probably going to look after the equipment you’ve been trusted with.
Tip 3: Learn to Listen and Pay Attention!! No one expects you to know how to do every job straight away! But equally, no one wants to explain how to do things over and over. So when you get a new job given to you, pay attention the first time. Watch, listen and ask questions. Don’t pretend you understand if you don’t get something. If you don’t get it, ask then and there. Its better to ask the first time, then to go off and half do a job or stuff things up because you weren’t paying attention and you didn’t understand.
Tip 5: Don’t expect people to look after your gear! In any job you are going to be trusted with equipment. Some of it might be brand new. Some of it might be older. It doesn’t matter. If you are trusted with something, look after it and respect it! Secondly, if you are using it, you’re responsible for it. So don’t expect the boss to have to re fill water containers, charge radios, or check you have everything for the day.
Tip 6: Look for the jobs you can do to be useful: In any job, there are often little things you can do to make the job a bit easier or quicker for the rest of the team. It could be setting the gates and yards up before the cattle are bought close to the yards. It might be putting on the lunch billy or switching over water troughs. Get used to looking for the little jobs and doing them without being asked to. It helps the team and it makes the job a bit easier for everyone.
Now I know there are plenty of other tips and suggestions. But I reckon these few can be boiled down to the simple ones of be respectful, listen, learn, and ask; help each other and take responsibility for yourself. Be part of a team. These are the skills that you can build a career around. In any job you go to, regardless of it being on a farm, a station or any other field of agriculture, these are the ones that will help you make your mark and lead you to a more rewarding and enjoyable career.
The Australian cattle market has certainly offered a lot of excitement in the past six months! The value of cattle has steadily increased, and so to has the excitement and hype around beef prices. Without doubt this is one the best periods I've ever heard of for producers looking to sell cattle! Pretty much every type of animal is finding a ready demand, from restocking animals, to slaughter cattle.
I happened to have a look at the Eastern Young Cattle Indicator - the EYCI ending yesterday the 10th of September 2015. The EYCI is a 7 day rolling average, that looks at the prices paid for young cattle (vealers, yearling heifers and steers) that are heavier than 200kg with a muscle and fat score of C2 - C3.
The EYCI has reached 584.50 c/cwt. Thats an incredible figure!
So its really hard not to be excited and not to be caught in the hype of a strong market, that continues to offer such great returns.
Having said that, there are some lessons worth paying attention to, and I'm encouraging my clients to remember those lessons despite all the hype!
The most important one is to never forget your customer! Yes there is a demand for cattle, and there is good money on offer! But, there are some producers who have been disappointed with the returns they have made. Its important to remember your customer is looking to buy product for a specific purpose. Thats why they have set specifications for the cattle they want! Its really important to remember that even though the market is strong, there are still discounts for cattle that aren't suitable for a customers needs.
I reckon some producers are not thinking about this part of marketing cattle as much as they would have done in the past! So just because the money is good, don't forget you still need to do some homework and send cattle to the right places!
If cattle don't meet a customers needs, then send them somewhere else, or prepare them to meet the customer. That way you won't drop your returns and you will get the rewards you have been working towards!
I've also noticed a recent article by Beef Central looking at the prices for grained cattle custom fed for 100 days. Its a really good article that looks at custom feeding on a quarterly basis.
The analysis done by the Beef Central team predicts a loss of $20 / head on custom feeding cattle. There are various reasons for this outcome, one of the big drivers is the cost of feeding cattle, particularly in grain prices.
There are a few things I wanted to touch on from this article. The assumptions used to make this prediction are pretty standard across the industry. However, the margins on feeding cattle are so slim, as seen in this analysis, that it doesn't take much to take a budget from a positive to a negative. It could be grain price, it could be purchase price of cattle.
In my experience the big variables are actually the performance of the cattle themselves! A lot of producers over hype how good their cattle are!
Not all cattle perform well in feedlots. Poor growth, poor health, behavioural issues that make them unsuited to feeding through to lack of yield. These are all issues that frequently occur in feedlots, and in the case of custom feeding, these issues impact directly on the profit of the activity.
I reckon its important to do some homework and look into your marketing plans more closely. Don't get caught up just on the cattle market and the value of the EYCI! Just because the market is strong, it doesn't mean you can switch off thinking about ways to do things better, or to market your cattle to the most appropriate destination!
Personally I want to see producers receive as much return as possible, and not waste any opportunity to make a strong return. But if you're going to make that happen, you have to stay switched on and not let the hype and excitement prevent you making the right decisions.
When I first started writing Rayner Reckons, I wasn't really sure what reception they might get from clients or the general population. I'm happy to say that in general the feedback is pretty positive. Not many people write comments on each post, however a lot more people often bail me up in person to mention something about a post they have read or enjoyed.
I'm very pleased that the blogs are useful and thought provoking. I really want these updates to be about topics or ideas that can help answer a question or be a spur towards a new practice in your own program. I also want them to showcase the amazing clients I get to work with and to highlight ways in which my business can help you run your program a little more efficiently.
I reckon one of the downsides with a blog is you do need to be able to access the internet and spend the time reading each post. I spend a lot of time in the car or on planes travelling, and my opportunity to access the internet is a bit restricted.
I tend to spend a lot of my travelling listening to audio books. In recent months I've been listening to a lot more podcasts. A podcast is basically a downloaded file that can be of a radio program, book, interview or lecture. In fact a lot of things are now available to listen to on line as a podcast.
The has got me thinking, and knowing I'm not alone in wanting something to listen to when I'm travelling or for some people wanting something to listen to when they are out doing other things, or even at night drifting off to sleep.
So this has lead me to developing a podcast of Rayner Reckons! Each week I will be recording a short podcast of around 10 minutes to discuss some of the topics I think are important for producers to know about. I'm hoping as time goes on to record and share some of the thoughts of industry leaders and to even highlight a few of the visits and projects I have with RaynerAg clients.
The podcasts won't replace the Rayner Reckons blog. I see it as another way of sharing ideas and keeping you on top of events and information.
If you haven't used a podcast before you can listen on line by clicking on the podcast you want to listen to. If you'd like to download it and add it to your iPod or MP3 player, you can search for Rayner Reckons on iTunes and have the latest podcast downloaded for you to listen to when it suits you!
I'm quite excited about this new option for sharing ideas and information and I hope you get a kick out of listening to some of the points I've shared.
- Are you feeding enough?
- Have you really considered what you are feeding?
- Dont rush to judge during this drought
- Critical decisions for your cows
- Some drought feeding tips
- Using fat scores on farm
- What’s the point of recording that?
- How do you prioritise risk?
- Water has no nutritional value!
- Profit - is it a numbers game?
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