Are you still on your farming "P Plates?"

Operating a beef enterprise, or indeed any farming enterprise, is a challenge. Farming is really a multi dimensional activity. As most producers will readily acknowledge, their skill set has to cover not just the requirements of managing livestock; but to adjust and operate in an ever changing environment. They need to be across animal health, nutrition, understand the markets, adjust their systems to comply with welfare and health regulations. All this before considering financial management; infrastructure maintenance - the list goes on!

“were like a lot in our area, on our P plates when it comes to beef cattle”.

Recently I was speaking to a newer farming operator who told me that his family “were like a lot in our area, on our P plates when it comes to beef cattle”. I liked that description quite a lot. Gaining your licence takes a lot of time. Not only do you have to know the rules, but you have to be able to demonstrate through practice and testing that you can do it safely. And even then your P Plates are designed to keep you safe while you develop more skills and competence as a driver.

Farming P Plates

We all move from Red to Green as we develop our skills and knowledge

In farming its not as clear cut. There are plenty of people to give you some advice. Some of it will be helpful, and some will be less usefull. And if you are on your P Plates, working out what’s useful - before you lose control - can be a challenge!

So, for those producers who are still on their “P’s” here are a few tips to think on.

1: Have a plan in mind of what you want to achieve. The key to this tip is don’t just say you want to run cows! Your plan needs to provide you with the direction of how many cows? How much money do you need to make from the system to achieve that goal?

2: Is your plan realistic? Do you have the skills to make it happen? Is your property REALLY able to sustain that plan? Have you truth tested your advice / skills? If not are you ready to address and acquire the skills & resources you don’t have?

Do you have a plan?

Is it realistic?

3: Do you have a clear idea of how achievable your goal is? In other words, do you really understand what you actually have to do to get to that end point? Do you understand the time you will need to put in? What are the other resources you will need to use?

4: Are you prepared to ask questions and not make assumptions? We all make assumptions. Everyone is guilty of looking over the fence and thinking of what you could do “since the next door neighbours seem to be going ok..” Don’t assume that what works (or doesn’t work) for someone will apply to you. Ask for help, seek some advice. Look for objective answers!

5: Avoid the DFO - DATA FREE OPINIONS !! These will come at you from every angle. From what type of cow you should have; to if you should breed or trade; when to sell and what products to use. Some DFO’s all be offered by people that you think you need to listen to (other producers; agents; retailers; butchers; the bloke in the pub / cafe). Some of their suggestions may have merit. BUT - you need to ask and check the facts first!

Just like learning to drive, when you are on your P plates, the opinions of older more experienced drivers don’t always apply. You ask questions and see how relevant that is to where you are as a driver. In time you might be able to take on a bit more. But dont feel you have to take on the DFO’s!!

Hopefully as you move from your Red to Green and then onwards, these tips will set up the habits of good farming practice. And like learner drivers, there are experienced coaches and trainers out there to help you on your way. When you can use these as mentors or trainers to get your skills developed more strongly and to make your farming experience more rewarding.

Producing Optimal Carcasses

What does it take to produce an optimal carcass?This is a question that producers often ask.While there are a number of things we can do as livestock managers, I think the first step it to actually define what an optimal carcass means.

In my mind, an optimal carcass is one that meets the target specifications for weight; fatness, eating quality – MSA Index and has a high yield of saleable meat. I also think this is something that producers need to do consistently, and do so with the most efficient use of resources.  There are a few steps I think producers focused on optimal carcass production need to consider.

1. Clearly define the breeding objectives for your herd. I’ve often talked and written about the importance of defined breeding objectives. The reason being, these objectives define the type of genetics you need to use to meet your market and to breed cattle suited to your program.

2. Know what you are actually trying to achieve! Markets are well defined for weight, fatness, and eating quality. If you know what these specifications are, you can start to plan on the process of growing to meet these. Specifications are readily available from processors and from feedlots. So you need to get in touch or at least look at the specifications on company web sites and choose realistic options for your program.

3. Focus on what you can control. There are three key areas you control as a producer. These are:

• Maturity pattern: This determines the ability of your animals to meet specifications. It also impacts on productions traits such as fertility, so you need to consider both aspects in order to be productive and profitable.

• Growth rate: Your ability to choose the correct genetics, and to manage nutrition to express those genetics, has a massive impact on optimal production. Using EBVs and feedback from previous sales can help you fine tune growth rates. But you still need to manage pastures, crops and supplements to make that growth happen.

Finally, you need to manage the way you finish and sell animals:  The final stage of production, selling and transport can derail your program.  Stress, poor handling or other factors can impact on your eating quality index and cause you to miss the optimal.  So this final stage should be managed as carefully as your genetic decisions or feeding programs. 

Managing Growth

A large part of optimal carcass production is the management of growth of animals.  This actually starts with your choice of genetics.  The ability to select for growth using EBVs is an opportunity you shouldn’t overlook.  It’s well proven by many research and commercial trials that, EBVs do work and can be a very effective tool for producers.  

However, genetic potential can and is often limited by nutrition.  Growth is a function of the daily intake of energy and protein.  Ensuring your cattle have sufficient to maintain growth paths is the practical aspect of management.  

The CRC for Beef Cattle highlighted the impact growth paths have on carcass yield, fatness and eating quality.  The research showed quite markedly that slow pre weaning growth resulted in cattle that were smaller than normally grown cattle.  

However these slower grown cattle never catch up in weight, even in feedlot conditions.  The simple message being that to meet carcass weights, these cattle had to be grown longer, and this ran the risk of impacting carcass fat specifications or lowering MSA Index values.  Either way, slow pre weaning growth is not ideal

Slow post weaning growth was also researched.  It was found that slower than the optimal 0.7kg / day resulted in cattle that grow faster in finishing programs.  They tended to be a bit leaner and have less marbling.  So if this is an issue for your markets, this may also be a path to avoid.  

The CRC data really suggests we aim for 0.7kd / day for animals up to feedlot entry.  To do this, you should remember that your cattle will need to eat at least 3 – 3.5% of their live weight on a Dry Matter basis each day.  Ideally this feed would have a minimum of: 

• Energy 10.5MJ / Kg

• Crude Protein 14%

• Fibre 30 – 40% NDF

A simple rule to remember is that the faster your cattle grow, the fatter (and slightly more muscular) they will be.

Eating Quality

There are many factors that have an impact on MSA Index values.  As producers, its important to focus on the ones that have a high impact and are controllable on farm.  High impact variables include Marbling and Ossification. 

Your genetic selection and nutritional management will influence your animal’s ability to develop marbling.  It’s a trait worth considering if this can be selected for without compromising your other production traits.  Ossification, can be improved by growth rates and achieving higher weight for age. Again it’s important to balance this with other traits that matter to you, like carcass fatness and marbling.

The amount of Tropical Breed Content will impact on your MSA Index.  But you need to be realistic. If your environment is nest suited to Indicus cattle, then you should use that to your advantage. You can still select for growth, marbling and fatness and achieve MSA Index scores that are quite high if you manage these traits well.

How you sell your animals also has a huge impact on your ability to meet optimum carcass specifications, particularly for eating quality.  The work done by MSA highlights the impact that sale yard stress and handling has on eating quality.  Cattle sold through saleyards have MSA Indexes that are 5 units lower than those sold direct to processors.

Summary

Producing optimal carcasses does require some serious attention across genetics, nutrition, and turn off.  More importantly, if you don’t have a clear idea of what your optimal carcass requirements are, and utilize past feedback to fine-tune your program, you’ll find it a much harder challenge.  Having some clear objectives and using the tools that are now available is the key starting point for anyone determined to consistently hit their targets.  

It’s important to remember that if you are not entirely sure where to start, to seek advice or help to define your goals.  Its one of the services I’ve been delivering over recent years, and it's certainly something you may want to consider in your program.

Are you properly prepared to buy a new bull?

Purchasing new bulls for a program is a significant event for any producer.While many people consider the immediate cost of the bull to be the most pressing consideration, there is much more to consider than his actual cost! A bull will make a contribution to a herd that will extend for up to 15 years. So the lifetime cost of that bull in a herd is much greater than what you may pay at auction.

I spend a lot of time with producers looking at bulls before sales.  I’m often conscious that a large number of people I chat to have only a general idea of the characteristics of the bull that they want. As I wrote earlier, the question “what do I think of this bull?” is a hard one to answer. As we approach the spring bull selling season I’ve prepared a few suggestions to help producers prepare ahead of their next bull purchase.

1. Know what you want to achieve in your herd

A new bull should be the source of genetics to help move your herd closer to your goals.  So you need to be very clear on what you want to achieve.  I’d normally start by considering:

• Your current market – are your steers and heifers meeting the weight, fat and eating quality specifications?

• Your environment – are your cows the size that suits your pasture growth patterns throughout the year

• Is your herd fertility as high as it can be? Are your cows going into calf early, delivering calves easily and rearing those calves to weaning?

• Are there traits you would like to improve further or correct with genetics?

These are four key questions you should be focusing on as part of your business planning anyway.  In terms of seeking a new bull, the answers to these questions will give you a focus on the traits you should be seeking.It’s equally important not to rush this process!  You really need to take some time and review the market feedback you have, your fertility data and your paddock notes to see why you have been culling certain females from the herd.

2.  Search for bulls well before the sale

If you have identified the traits of bulls that you want bring into your herd, you should start doing some preliminary searching.  There are various ways to do this.  

• Use breed websites to search for bulls with specific EBVs that meet you criteria. This can be useful, however it may mean you need to do some additional searching to find the bulls you have identified with a particular breeder.

• I use on line sale catalogues available through the breed websites. This option will bring up the bulls listed at your chosen breeders sale. The easiest way to find the bulls that suit your criteria is to click on the option that asks if you would like to link to Breed Object. This will bring up the bulls with their EBVs and Index values, which makes searching much easier.

3.  Use the Indexes

Indexes were developed to help make selection easier in a couple of ways. The first is to remember that Indexes are developed to reflect both the short-term profit that would come from using a bull through his actual progeny.  While longer term profit is the influence his daughter have on a herd. The Indexes combine the animals EBVs for their impact on the traits that impact on a specific production and market system. 

I personally tend to find the Index that best suits a program and look at the top 5 bulls in the catalogue.  If you need to adjust a trait for a reason, one that you have identified earlier, you can then go and fine tune your selection on specific EBVs.

4.  Talk to the Breeder

Breeders have an interest in helping their clients. However you also need to make sure that the breeder you are approaching has the same focus or direction you have. Ultimately you have to be confident you are buying bulls from an operation that has the same focus and scrutiny you have for your own herd.  You need to do this well in advance of a sale.  Trying to make that decision on sale day is never a good idea!

5.  Have a physical checklist for sale day

I’ve been to hundreds of bull sales.  I know that some people find them exciting and a great day out. Some people find them over whelming and get swamped by the event. You need to go to a sale with plenty of time and a mission.  In short you need to: 

• Arrive early and spend as much time as you need looking at your chosen bulls. Don’t worry about the other bulls in the pen, or what other people like or don’t like! Your herd is your concern and the bulls you’ve identified are the ones that meet your objectives.

• Look at those bulls and have a checklist. Are the bulls structurally sound? Do they reflect your maturity pattern? What is their temperament like? Do they have the muscle pattern you need?

Ultimately you need to use your research and stick to the chosen selection. These bulls are those that fit your needs.  Don’t agonise about who is better in one trait but not another.  If they are all bulls that are in your specifications, rank them in preference, but then treat them the same!  Then in the pens use your observations to chose the best on the physical traits that you want.  If you do that you’ll have a preference list.  These and only these are the bulls you need to bid on! 

If you do this properly you’ll have time to enjoy the steak sandwich and the social catch up!  You’ll also find that when you ask me ‘what do I think of this bull?” I’ll be able to have a much more useful conversation with you!

Understanding your feed test results

How good is the feed you are offering to your livestock?I think this is a tricky question to ask.I know that in 90% of the instances that I’ve asked a farmer this question, their response is generally “Oh its pretty good!”Sometimes the qualification is offered that someone they knew grew it, or that it cost a lot to buy!

Unfortunately cost isn’t actually an indicator of the feed value! 

Feed value is actually determined by levels of energy; crude protein; digestibility, fibre and the amount of moisture contained in the feed.  All these components contribute to the usefulness a particular feed has in meeting animals nutritional needs as well as impacting on the amount the animal can physically consume each day.

It’s actually pretty difficult to tell any of these things from a visual inspection.  And while looking at a hay, or silage you might be able to have a guess it the digestibility of the plant when it was cut and the general moisture content, its only ever going to be a guess.  

Over the past few months, many people have been full feeding their animals as the drought restricts paddock feed.  A lot of these rations have been well planned and meet the various needs of the stock.  However there are still plenty of rations put together on the basis of guess work!  And by guessing some classes of stock are being underfed.

Obtaining a feed test is the most reliable way to determine the value of a feed. Its also is essential if you want to develop a ration that actually meets the needs of your stock.

Feed tests kits can be obtained through private companies or state departments of agriculture.  Pretty much any feed can be tested.  The kits will provide instructions regarding the amount you nee to collect to send away. 

There are various levels of testing that you can request.  For most situations, a standard evaluation is enough to give you the information that will help you know how useful your feed really is.

The things I look for include the following key components:

DRY MATTER (DM):  All feeds contain some amount of moisture.  This moisture has no nutritional value.  When you prepare a ration, you need to allow for the water in the feed, and in many cases you will actually have to increase the physical or ‘as fed’ amount per animal to account for the moisture.  If you don’t, your rations may end up being lower than what your stock need each day.  Over a period of time, this can lead to significant underfeeding!

DRY MATTER DIGESTIBILITY:  This explains as a percentage, how much of a feed your animals will be able to digest. Digestibility and energy are positively related, so having high levels of digestibility not only means your animals can use more of a feed, it also means that the energy levels of the feed are at a level that will meet their needs. 

DRY ORGANIC MATTER DIGESTIBILITY:  A further measure of digestibility is made on the organic matter of the feed.  It is expressed as a percentage and again the higher the percentage, the higher value of the feed for animal production. 

CRUDE PROTEIN:  Crude Protein is expressed as a % of the Dry Matter.  Crude Protein is essential for rumen function.  Low levels will reduce the ability of a rumen population to effectively use a feed.  For maintenance cattle require Crude Protein to be a minimum of 8%.  Lower values may mean that you will need to add a protein source to your ration.

FIBRE:  Fibre is an important part of a diet.  Low levels of fibre can lead to digestive upsets.  More commonly, in rations I’ve seen recently, fibre is often very high. High fibre not only lowers digestibility (and energy) but it will also reduce the amount of feed an animal will actually eat.  

Fibre is measured by either; Acid Detergent Fibre (ADF) or Neutral Detergent Fibre (NDF). Acid Detergent Fibre (ADF) is a measurement of cellulose and lignin while 

Neutral Detergent Fibre (NDF)is a measurement of hemicellulose, cellulose and lignin.  Its possible to calculate how much of a feedstuff will be consumed by an animal by dividing 120 by the NDF.  

Lower NDF figures will see your animals eat more, and so potentially achieve their needs more easily each day.

METABOLISABLE ENERGY (ME): The energy that an animal can actually use in its daily needs is refereed to as Metabolisable Energy (ME).  It is expressed as Megajoules (MJ ME / kg of Dry matter).  To maintain cattle the ME of a feed must be at least 8MJ.  If a feed is below this level, you will need to add an energy source in order to achieve your stock requirements.

Knowing the levels of nutrient in your feed places you in a pretty powerful position!  This knowledge will determine if the feed is suitable for the stock you are planning on feeding.  

It will also help you determine the amount you need to feed. This information not only allows you to manage your animals more effectively.  

It also means you will be using your feed more efficiently and getting the best return on the money you’ve spent to purchase it and feed it out!

Don't forget, you don't have to work these things out on your own.  I'm always available to assist you with your feed tests, developing your rations or helping plan your strategies.  If you want a hand, please don't hesitate to get in touch with me!

Some drought feeding tips

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.  

What’s the point of recording that?

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!

How do you prioritise risk?

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!

Profit - is it a numbers game?

“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.  

Are you focused on the basics or the peripherals of profit?

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! 

Some thoughts on managing joining this year

The first Tuesday in November is not only significant for punters!  While the Melbourne Cup is a big deal for many people across Australia, in beef production, Melbourne Cup day marks another event for beef producers.  In spring calving herds, Melbourne Cup is often the starting point for producers to join bulls into the cow herd.

A November joining sees calving commence in August the following year.  Ideally most herds will calve into the spring growth.  Calving places huge energy demands on cows.  In most cases cows energy requirements double as she commences to produce milk and recover from calving.

Generally, cows lose weight in this period, which can impact on her ability to return to oestrus.  It generally takes around 50 days after calving for a cow in average condition (Fat Score 3) to return to oestrus.  Cows in lower body condition at calving will take longer to return.

So calving in spring is a strategy designed to match a cows peak energy demands with peak pasture growth.  The flush of pasture growth often meets the increased demand for energy and cow weight loss can be a bit more manageable.

But what happens when cows are in a light condition at calving and into joining a few months later?  If you are going into joining in November and your cows are lower in condition – Fat Score 2, it’s highly likely many of your cows wont be cycling when the bulls go out.

Often these lighter cows will cycle later and many not go into calf until the middle or end of the joining period. 

Length of joining then is an issue for many producers; particularly those struggling to manage lighter conditioned cows and poor seasons.  I reckon producers sometimes decide to extend their joining period by a couple of weeks, just to allow some extra time to get these cows in calf.

While that strategy can work to increase your conception rate, I actually think this can be a false economy.  Extending joining will result in a big spread of calf ages and weights. 

In practical terms there is around 7 kg live-weight differences between calves born a week apart.  So Calves born in the first week of joining should be around 7 kilograms heavier than those in the second week.  Over a six week calving, its not unreasonable to expect that the calves born in the first week will be about 42kgs heavier than the calves born at the end. 

Over 12 weeks, this difference is around 84kgs between youngest and oldest.  If you extended joining even longer, the weight differences become larger again. 

There is a big difference in managing calves that are so varied in weight.  It has implications for your strategies around weaning, marketing, especially if you market weaners and in your choice of heifers to select as replacements. 

It can also be hard to bring cows back into line for subsequent joining’s.  Late cows generally are always going to be late in re-joining.  And they often slip further back over time.

So how do you manage the challenge of joining time and cow condition to maximize conception rates?  There are some strategies to consider.  Most of these revolve around improving energy supply to your cow herd.   Joining on a rising plane of nutrition should always be the goal. 

If the season is against you and you have to consider feeding, think trough the most suitable feeding program.  Don’t just use the same supplement you always fall back onto!  Actually match your supplement to your cows and pastures.  It’s also worth considering early weaning to reduce the energy demands on your cow.  And it is often more efficient and less cost to feed calves and cows separately.

Don’t forget joining is a pretty physical activity for your bulls, so you need to be out checking regularly on your bulls.  They can injure themselves, and you need to pick that up and if necessary replace bulls if they can’t work.  Again don’t just leave them out a little longer as this will impact on you for next season.

If you do want to discuss your joining program or have some objective assistance with the program over the next few weeks, I’m always happy to come and have a look.  So please feel to get in touch.

Pregnancy testing - Less costly than a cup of coffee

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!!    

The financial rewards for cattle selection

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?

Structure

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

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!

Some tips before your head out to the new job

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.

Look beyond the hype

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.

Listening in to Rayner Reckons

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.  

Setting a few benchmarks

Do you have a benchmark for production?  How do your management practices sit with best practice or against similar operations?  These are the types of questions I'm often asked by producers.  And these are questions not just being asked by my clients, I often get them in general discussions at field days, the saleyards, pretty much anywhere where a few producers might be chatting.

So how do you compare against others?  Does it even matter?  Well I guess what matters is if you are operating a financial and environmentally sustainable enterprise.  If you are doing that I reckon it doesn't really matter what everyone else is doing!  

Having said that, for most producers I know, there is always scope to improve their management or their production systems in some way.  Benchmarks can be a really useful tool to make those improvements.  

When I mentioned this to someone this week, their response was how are benchmarks useful? I reckon one of the best responses is that to create a benchmark, you have to make the time to consider what is being measured and actually respond with some real data.  

The very fact that real data is required actually causes producers to start considering what is actually happening in their programs.  It is very easy to overlook parts of the enterprise - the little things if you like, that on their own don't seem that important.  But when you accumulate a few of those things, they can have a massive effect on the overall business.

I reckon comparing your performance against a benchmark gives you a chance to objectively measure where your program is heading.  The way this needs to be done however is not to think that a once only assessment will mean very much.  

The first time you compare yourself to a benchmark you are really only comparing yourself to a single point in time.  You might be on par with that point, you could be above it or below it.  Whichever way you compare, the first time is really just the starting point.

To get some value, and make useful decisions, you need to do some comparisons over a couple of years.  This will show if there is a trend up or down.  

Having said that, if there are some things that you identify as being well below the benchmark, its a chance to get in and try address those issues as quickly as you can!

The other question many producers ask sits around what do you benchmark yourself against?  There are plenty of people throwing around benchmarks and production levels.  How current are those levels, how realistic are they?  These are all things to consider.

Personally I am a little unsure of what the realistic measures are for the producers I work with.  And there seems to be a fair bit of variation in what people are doing.  So this July I decided to conduct a benchmarking survey of RaynerAg clients and producers who use RaynerAg for advice.  I have to say, its not a short survey!  But if I'm going to collect data that I can use to help producers and have some meaningful benchmarks, well it has to cover a few things.

So far I have had some useful responses.  I am getting much better picture of some general practices that we can all improve and a few useful trends on fertility that might provide some easy but effective strategies for breeders.  Keep watching this space over the next few months and I'll share some of the findings as I complete the analysis.  

If you haven't completed the survey and you'd like to be part of developing these benchmarks, please feel free to click on the link and complete the survey.  I reckon we are all going to get a few useful results from the exercise! 

Keeping out of the cold

How do you cope with cold weather?  Some people seem to cope better with cold weather.  After working in the New England region of NSW for many years, I don't mind the cold too much.  I find that I can always put on some extra clothes, find a pair of gloves and even resort to a fleece lined hat for those cold bleak days!  And on the days when it is too cold, wet or miserable to be outside, there are always things to do inside to stay out of the cold.

However, for your livestock, the cold is an entirely different matter.  Livestock are impacted by cold weather, and if cold conditions are accompanied by some rain and wind, the impacts can be fatal.

Many people think sheep are the animals that are the most susceptible to the impact of cold.  However cattle can be just as susceptible.  

Several years ago I was told by a producer about an experience where some cattle were imported from a station in north Queensland to the New England.  These cattle were brahmans just older than weaner age.  The day after they arrived a snow event occurred and sadly some animals couldn't cope and died.  

So cold conditions, wet weather, wind can all combine to have devastating impacts on your animals.  And unlike the northern hemisphere, bringing animals inside is not really possible in Australia.

Can livestock cope with cold weather?  The answer is they certainly can.  The process of rumination does help them cope, as the rumination process releases plenty of heat that helps the animal stay a bit warmer.  The other things that help animals cope are the condition that the animals are in.  Livestock in average or better fat scores will cope more easily than lean or low fat scored animals.  

Animals that are at risk are those that are in low condition. Young animals and older wake animals are also at risk, as are lactating animals or sheep fresh off shears.

So how can you help your animals cope with the cold?  There are a few things you can do.  These include:

• Provide hay for your livestock. Hay is slower to digest, which means the rumen will produce more heat as digestion occurs. This is especially important when the paddock feed is limited.

• Put animals in sheltered paddocks. If you have ever been in a paddock sheltered by some trees you will know the difference in temperature, particularly getting out of the wind. Grazing your stock in sheltered paddocks, with timber or protections that can reduce the wind chill will make a big difference to your animals.

• Avoid importing livestock from environments that not as cold! Livestock need some time to adjust to a new environment. They may not eat the new pastures, may be unhappy after transport and may have had time to explore their new home in time to find the sheltered paddocks or places in the paddock. Being hungry, cold and stressed places these animals at risk, and if they are young, weak or light in condition, the cold is a real threat.

• Draft your herd into fat scores. Its always good management to draft your herd so that you have them in similar weights and fat scores. The low conditioned animals, and the lighter ones need to be given particular care at the best of times, but during cold, this care is particularly important. These are the animals that should have first option for shelter and definitely need your attention.

Fortunately the cold weather in Australia doesn't last for too long.  Snow is an occasion and doesn't bury pastures for months on end.  The big risks are the cold windy days as cold fronts sweep up from the Antarctic.  I reckon we are also fortunate in knowing when these events are on the way, so there is time to plan ahead.  I reckon if cold is an issue for your stock, you need to think if you can help them cope more easily with hay and shelter.  And if you are thinking of purchasing or moving a few animals onto your place, I reckon if you can consider the traditional impact on cold and determine if it is the best time for your region and for your animals to do that movement.

If you're happy with all that, and you've helped your animals cope as well as they can, I reckon you've earned some time inside by the fire!

Where were you this time last month?

How much do you trust your memory?  I reckon most people would say they have a pretty good memory.  But can you remember what you were doing this time last week?  What about last month?  Now ask yourself if you remember everything about the last time you worked with your cattle.  Can you remember how many animals you saw; how many you treated; how many were below average in weight or fat score.  

I've been listening to a podcast series while I've been driving called Serial.  Its produced in the US by a journalist exploring the story of a young man arrested for the murder of his ex-girlfriend.  The podcast has explored the case and the evidence around the case.  There have been interviews with witnesses, the young man, the police.  Its been fascinating to listen to.  

What stands out for me, is how unreliable peoples memories actually are.  Where they were, what they did, who they talked to etc.  And these are not unimportant details!  These things are important to find the murderer of a young girl and to prove the innocence or guilt of another person.  That person could face the death penalty or life in prison.  So remembering things is important!

Yet in lots of cases, people weren't really sure of events.  They couldn't remember, or they assumed it sounded correct and so on. In any event it proves to me that we can't always trust our memories, especially with details that happen every day.

I started thinking about this following a few client visits this year.  A big part of my job is to help make better decisions regarding the herd and the way the herd is managed.  

In some cases, my clients weren't really sure of important details.  Details such as length of joining; number of cows in the herd; average turn off weights into the feedlot or the number of cows sold out of the herd for non pregnancy.  

Its not to say they didn't know the answers, its just that in a few cases, there was a little uncertainty. 

Uncertainty troubles me!  More and more in agriculture we need to find ways to be certain.  Either to prove the integrity of our food production systems; to prove compliance with market programs; or simply to prepare a budget so we forecast income and meet the bills as they come in!

Its often in the little things, these details, that opportunities exist for improvement.  Individually these opportunities may not be very large.  However the accumulation of these opportunities often results in a significant difference in production or in profitability.

The key to all this is your records.  How good are they?  Without good records, you are reduced to relying on your memory. And if you are still thinking about just what it was you did with your cows this time last month, you might feel your memory is a little bit unreliable.  The other downside with memory, is it is very hard to analyse your memory to identify trends or anomalies that might indicate a developing problem.

One of the keys in decision making, is to make an informed and timely decision.  This is so true in agriculture.  In your own business the best source of information will be your records.  If you can't look at them, question them or get some advice on what your records are indicating, then your decisions will never be as good as they should be!  

So my challenge to you is to think about the last time you worked with your cattle.  If you kept records and can be confident in what you did and saw, then think about if you can use those records to make good decisions for the management of those cows. If you didn't keep records and you're not entirely certain of what you did, do you have total faith in your decisions for the best management of your cows.  If thats the case, maybe its time t discuss with me the options for keeping records in your business.

Do your capabilities match your ambitions?

In the last few weeks I have had four conversations with producers who are incredibly enthusiastic about a new plan.  The plans were all different of course, but the enthusiasm was very similar.  I love enthusiasm, and I am incredibly passionate about aiming for a goal.  But!  There are times when I do wonder, if the plan is realistic!

No doubt you have seen business coaches, life, coaches and other people sharing inspirational advice.  Its not uncommon to see them as a motivational quote.  You know the sort of thing, "Dream big" or "The only thing holding you back is yourself". There's nothing wrong with these motivations.  It is vital to aim at goals and work towards them.  

Having said that, dreams don't just happen! In a business, your ambitions are realised through hard work, through focussing on achieving targets, and on ensuring your capabilities meet your ambitions!

One of the discussions I had last week focussed on producing cattle to meet a certain market specification.  The specification was pretty tight for weight and fat.  Underpinning that requirement was the need for the cattle to be certified as PCAS.  The top price on offer was almost $1.00/kg carcase weight above the normal rate.  It was a really attractive option, and if you could produce cattle that met the certification requirements and more importantly hit the specification, the return was going to be significant.

However, there were a few issues.  the most easily resolved was gaining PCAS certification.  It required some paperwork and a bit of homework, but the effort involved was more than offset by the potential market opportunities.

The bigger issue was simply to do with the cattle that the producer owned, and the feeding regime the cattle were on. 

Quite simply the cattle were never going to hit the specification for weight and fat.  Most of them would have been too lean at the weight, and the grid discount for under finished cattle was pretty big.

At the same time the cattle were grazing a feed that was declining in quality, and were not gaining the weight needed to finish in time.  They really needed a supplement to get the best use from the feed, but the options for the producer are limited by the PCAS requirements and the availability of supplements.  

So there were a few things going wrong.  The cattle, the feed and the restrictions of the program meant that the ambition to produce to that market wasn't going to happen easily.  

The discussion I had with the producer was really interesting.  The conversation started with the disappointment that was felt by the producer over the whole process.  They felt they had wasted their time and there was some blame being levelled for that. Blame on themselves for wasting time and more interestingly, for listening to the wrong advice.  The comment was "I should have never listened to them.."  and "they said that.."

I'm not sure who these mysterious advisors are.  I have a sneaking suspicion that advice was given by a range of people, from neighbours, agents, articles in the paper and perhaps a drinking mate in the local pub!  

I have learnt that people listen with half an ear to things, often hearing what they want to hear.  If it is a way to get more money, or in this care to chase a more lucrative market, the listening is often filtered through this filter of "getting more money".

The other conversation that stood out this week was with a producers wanting to complain about a market price at auction for steers sent to a show.  The issue was a poor return and that it wasn't fair to see a low price for these animals after all the hard work that had been done to prepare them.  It was an interesting conversation!  Again, the issue was a bit more complex.  The steers in question were under weight, had little fat cover and weren't really ready for the market.  However the exhibitor had been told, that by preparing them and taking them to the show, the returns at the sale "shouldn't be too bad.."

That advice had come from someone who hadn't actually seen the exhibitors steers, didn't know the weight of the steers or even what they were going to be shown for.  Yet the exhibitor accepted their advice and as result had a disappointing experience as a result!  Again there was a lot of self blame for listening to bad advice and for asking the wrong people for input.

So what do you make of those experiences.  I guess there are a few things.  Firstly, if you are embarking on a new plan or working for an ambition you hold dearly, you need to be realistic about your capabilities.  Can you really achieve that outcome with the resources you currently have to hand?  Do your cattle really suit that market?  Are your pastures really up to that level of production?  Does that certification restrict you too much?

A more deeper question is what are you trying to achieve?  If you want to make more returns and better profits, is there another way, that uses your resources efficiently and effectively?  Can your ambitions and capabilities be more aligned in a different way?

I also have to ask, who are you getting advice from?  If you are getting advice from someone who doesn't know what they are talking about, then really, what do you expect?

Just owning cows isn't always a qualification!  Can your advisor explain the challenges and opportunities for your business. Have they looked at your animals and pastures?  Do they really understand your system?  Do they actually understand the market, or is it just pub talk?  So many people talk a lot of rubbish that they have half heard or over heard in the pub / cafe / saleyards.  

I reckon most people wouldn't make business decisions on gossip.  Equally I don't think you would ask for computer repair advice from a plumber!  So if you are looking for advice to help you match up your capabilities and your ambitions look for someone who actually can come and give you what you need.

Don't be afraid to invest in the right advice.  Part of the disappointment in the conversations I had this week was a level of regret for lost income, lost opportunity, and more importantly for lost time and resources.  Investing in the right advice at the right time would have made a big difference for both of these producers.  I reckon free advice isn't always good advice.  And when you lose money, you will always be further from your ambitions!

Getting paid for the value of your cattle

I'm often asked by producers for my ideas on ways to increase the income they receive for their cattle.  Getting a better return is something most people want from their cattle.  And along with the desire to make a better return, there is always some new idea or marketing strategy that someone wants to do because they have heard it will make them more money!

Sadly I don't think there is one simple scheme, breed or idea that will guarantee you will make more money!  In my experience the way to make money in cattle production is through a combination of work and focus.  And while most people work hard, the focus is often the area that is most lacking.

So what should you be focussing on?  The first thing is your market.  Australian beef markets are well defined.  If you are selling cattle to a feedlot or to an abattoir, both of these destinations can clearly describe what type of cattle they want to buy and they can say how much they are prepared to pay for those cattle.  

Despite these specifications being readily available, many people don't appreciate what a powerful tool they are in helping you make money.

Specifications provide you with target weights and fatness.  This helps you determine suitable growth paths on farm for your animals.  It means you can use your feed reserves and make grazing decisions that will direct your animals to a market end point.  This is the focus that many people need to have but often don't.

Sadly I often see people who put cattle into a market and those animals are overweight or over fat.  This creates a few problems.  Firstly the animals are out of specification, and so will be valued at a discounted level.  So instead of an optimum price per kilogram, it is sometime much lower than the animals deserve.  

Secondly it takes your feed resources, and therefore adds to the cost of producing those animals, to get them to the weight you sold them.  So not only are they worth less per kilogram, but you also wasted feed getting them to that point.  

I reckon a lot of people don't notice they are losing money.  The extra weight, even though it has a lower value, will mask the lower each animal has made.  So that producers often miss the fact their animals didn't receive the optimum price.

Focussing on a market specification, either for feedlots of for processing, helps set realistic work goals.  Decisions about grazing management, feeding programs and other tactical decisions become easier if you are working towards an end point. 

More importantly at a strategic level you can start examining your genetics and your herd.  Are your bulls helping you achieve the correct growth rates and level of fatness required by your target market?  Do you need to be selecting a different type of cow in the breeding herd?  

Are your pastures capable of supporting your growth program?

These are important decisions that can help you target your financial resources more effectively in the long term.  While in the short term you can focus on hitting a market specification that will return you the greatest return.

I recently worked with a client who was aiming for a specification for a feedlot.  The optimum price was for steers that were 400 - 449kg.  Over 450kg the price difference was 5c/kg lower.  Initially this didn't seem to bad, however we started to look at the feed resources we had to use.  The extra cost in this instance to get steers over 450kg, effectively worked out to be the equivalent of a 25c/kg discount!  We started to look at how we were growing those steers, and by aiming for an earlier turn off at the optimum weight we were able to save around $70/hd on the steers that normally would have been in the heavy category.  To wrap this story up in past years about 10 - 15 steers would always have been too heavy, so we saved around $1000 by making a few changes and staying more focused on the plan!

There is no doubt we had to work a little bit harder and change a few management practices.  However I reckon using resources more efficiently, and targeting a specification more closely, has helped realise better returns on farm.  

I reckon working with producers to be more focussed and efficient in their work programs has helped gain a better return for the clients I've worked with.