The economics of phosphorus supplementation of beef cattle grazing northern Australian rangelands
M. K. Bowen A E , F. Chudleigh B , R. M. Dixon C , M. T. Sullivan A , T. Schatz D and T. Oxley DA Department of Agriculture and Fisheries, Rockhampton, PO Box 6014, Red Hill, Qld 4701, Australia.
B Department of Agriculture and Fisheries, PO Box 102, Toowoomba, Qld 4350, Australia.
C Queensland Alliance for Agriculture and Food Innovation, CAS, The University of Queensland, Rockhampton, PO Box 6014, Red Hill, Qld 4701, Australia.
D Department of Primary Industry and Resources, GPO Box 3000, Darwin, NT 0801, Australia.
E Corresponding author. Email: maree.bowen@daf.qld.gov.au
Animal Production Science 60(5) 683-693 https://doi.org/10.1071/AN19088
Submitted: 12 February 2019 Accepted: 20 July 2019 Published: 23 September 2019
Abstract
Context: Phosphorus (P) deficiency occurs in beef cattle grazing many rangeland regions with low-P soils, including in northern Australia, and may severely reduce cattle productivity in terms of growth, reproductive efficiency and mortality. However, adoption of effective P supplementation by cattle producers in northern Australia is low. This is likely to be due to lack of information and understanding of the profitability of P supplementation where cattle are P-deficient.
Aims: The profitability of P supplementation was evaluated for two dissimilar regions of northern Australia, namely (1) the Katherine region of the Northern Territory, and (2) the Fitzroy Natural Resource Management (NRM) region of central Queensland.
Methods: Property-level, regionally relevant herd models were used to determine whole-of-business productivity and profitability over 30 years. The estimated costs and benefits of P supplementation were obtained from collation of experimental data and expert opinion of persons with extensive experience of the industry. The economic consequences of P supplementation at the property level were assessed by comparison of base production without P supplementation with the expected production of P-supplemented herds, and included the implementation phase and changes over time in herd structure. In the Katherine region, it was assumed that the entire cattle herd (breeders and growing cattle) grazed acutely P-deficient land types and the consequences of (1) no P supplementation, or P supplementation during (2) the dry season, or (3) both the wet and dry seasons (i.e. 3 scenarios) were evaluated. In the Fitzroy NRM region, it was assumed that only the breeders grazed P-deficient land types with three categories of P deficiency (marginal, deficient and acutely deficient), each with either (1) no P supplementation, or P supplementation during (2) the wet season, (3) the dry season, or (4) both the wet and dry seasons (i.e. 12 scenarios).
Key results: In the Katherine region, year-round P supplementation of the entire cattle herd (7400 adult equivalents) grazing acutely P-deficient pasture resulted in a large increase in annual business profit (+AU$500 000). Supplementing with P (and N) only in the dry season increased annual business profit by +AU$200 000. In the Fitzroy NRM region, P supplementation during any season of the breeder herd grazing deficient or acutely P-deficient pastures increased profit by +AU$2400–AU$45 000/annum (total cattle herd 1500 adult equivalents). Importantly, P supplementation during the wet season-only resulted in the greatest increases in profit within each category of P deficiency, comprising +AU$5600, AU$6300 and AU$45 000 additional profit per annum for marginal, deficient and acutely P-deficient herds respectively.
Conclusions: The large economic benefits of P supplementation for northern beef enterprises estimated in the present study substantiate the current industry recommendation that effective P supplementation is highly profitable when cattle are grazing P-deficient land types.
Implications: The contradiction of large economic benefits of P supplementation and the generally low adoption rates by the cattle industry in northern Australia suggests a need for targeted research and extension to identify the specific constraints to adoption, including potential high initial capital costs.
Additional keywords: farm-management economics, P nutrition, P supplementation, tropical pastures.
References
ABS (2012) ‘7121.0. Agricultural commodities, Australia, 2010–11.’ Available at http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/7121.02010-11 [Verified August 2018]Anderson ST, Kidd LJ, Benvenutti MA, Fletcher MT, Dixon RM (2017) New candidate markers of phosphorus status in beef breeder cows. Animal Production Science 57, 2291–2303.
| New candidate markers of phosphorus status in beef breeder cows.Crossref | GoogleScholarGoogle Scholar |
Barbi E, Moravek T, Anderson A (2016) The 2011–14 reef catchments beef industry survey report. State of Queensland, Department of Agriculture and Fisheries, Brisbane, Qld, Australia.
Bowen MK, Chudleigh F (2018) ‘Fitzroy beef production systems. Preparing for, responding to, and recovering from drought.’ (The State of Queensland, Department of Agriculture and Fisheries, Queensland: Brisbane, Qld, Australia) Available at https://futurebeef.com.au/projects/improving-profitability-and-resilience-of-beef-and-sheep-businesses-in-queensland-preparing-for-responding-to-and-recovering-from-drought/ [Verified June 2019]
Bowen MK, Chudleigh F, Buck S, Hopkins K, Brider J (2015) High-output forage systems for meeting beef markets: Phase 2. Project B.NBP.0636 final report. Meat and Livestock Australia, Sydney, NSW, Australia.
Campbell HF, Brown RP (2003) ‘Benefit-cost analysis. Financial and economic appraisal using spreadsheets.’ (Cambridge University Press: Cambridge, UK)
Chudleigh F, Oxley T, Bowen M (2019) ‘Improving the performance of beef enterprises in northern Australia.’ (The State of Queensland, Department of Agriculture and Fisheries: Brisbane, Qld) Available at https://www.daf.qld.gov.au/animal-industries/beef/breedcow-and-dynama-software [Verified June 2019]
Coates DB, Miller CP, Hendricksen RE, Jones RJ (1997) Stability and productivity of Stylosanthes pastures in Australia. II. Animal production from Stylosanthes pastures. Tropical Grasslands 31, 494–502.
Coates DB, Dixon RM, Murray RM, Mayer RJ, Miller CP (2018) Bone mineral density in the tail-bones of cattle: effect of phosphorus status, liveweight, age and physiological status. Animal Production Science 58, 801–810.
| Bone mineral density in the tail-bones of cattle: effect of phosphorus status, liveweight, age and physiological status.Crossref | GoogleScholarGoogle Scholar |
Colwell JD (1963) The estimation of phosphorus fertiliser requirements of wheat in southern New South Wales by soil analyses. Australian Journal of Experimental Agriculture and Animal Husbandry 3, 190–197.
| The estimation of phosphorus fertiliser requirements of wheat in southern New South Wales by soil analyses.Crossref | GoogleScholarGoogle Scholar |
Cowley T, Oxley T, MacDonald N, Cameron AG, Conradie P, Collier C, Norwood D (2015) ‘The 2010 pastoral industry survey: Northern Territory wide.’ (Northern Territory Government: Darwin, NT, Australia)
Davidson BR, Martin BR (1965) The relationship between yields on farms and in experiments. The Australian Journal of Agricultural Economics 9, 129–140.
| The relationship between yields on farms and in experiments.Crossref | GoogleScholarGoogle Scholar |
de Brouwer CHM, Cilliers JW, Vermaak LM, van der Merwe HJ, Groenewald PCN (2000) Phosphorus supplementation to natural pasture grazing for beef cows in the Western Highveld region of South Africa. South African Journal of Animal Science 30, 43–52.
| Phosphorus supplementation to natural pasture grazing for beef cows in the Western Highveld region of South Africa.Crossref | GoogleScholarGoogle Scholar |
Dillon J, Anderson J (1990) ‘The analysis of response in crop and livestock production.’ 3rd edn. (Maxwell Macmillan Publishing Corporation: Oxford, UK)
Dixon RM (1998) Improving cost-effectiveness of supplementation systems for breeder herds in northern Australia. Project DAQ.098 final report. Meat and Livestock Australia, Sydney, NSW, Australia.
Dixon RM, Doyle PT (1996) Straw and low quality roughages as drought feeds. In ‘A users guide to drought feeding alternatives’. (Eds J Rowe, N Cossins) pp. 61–74. (University of New England: Armidale, NSW, Australia)
Dixon RM, White A, Fry P, Petherick JC (2003) Effects of supplement type and previous experience on variability in intake of supplements by heifers. Australian Journal of Agricultural Research 54, 529–540.
| Effects of supplement type and previous experience on variability in intake of supplements by heifers.Crossref | GoogleScholarGoogle Scholar |
Dixon RM, Coates DB, Holmes WE, English B, Rolfe J (2011) Phosphorus nutrition and management: overcoming constraints to wider adoption. In ‘Proceedings of the Northern Beef research update conference’, 3–4 August 2011, Darwin, NT, Australia. pp. 102–109.
Dixon RM, Coates DB, Mayer RJ, Miller CP (2016) Productivity and phosphorus content of rib and tail bones in reproducing cows ingesting diets deficient or adequate in phosphorus. Proceedings of the Australian Society of Animal Production 31, 93–94.
Dixon RM, Kidd LJ, Coates DB, Anderson ST, Benvenutti MA, Fletcher MT, McNeill DM (2017) Utilising mobilisation of body reserves to improve the management of phosphorus nutrition of breeder cows. Animal Production Science 57, 2280–2290.
| Utilising mobilisation of body reserves to improve the management of phosphorus nutrition of breeder cows.Crossref | GoogleScholarGoogle Scholar |
Dixon RM, Fletcher MT, Goodwin KL, Reid DJ, McNeill DM, Yong KWL, Petherick JC (2019) Learned behaviours lead to bone ingestion by phosphorus-deficient cattle. Animal Production Science 59, 921–932.
Foran BD, Stafford Smith DM, Niethe G, Stockwell T, Michell V (1990) A comparison of development options on a northern Australian beef property. Agricultural Systems 34, 77–102.
| A comparison of development options on a northern Australian beef property.Crossref | GoogleScholarGoogle Scholar |
Henderson A, Perkins N, Banney S (2012) Determining property level rates of breeder cow mortality in northern Australia. Project B.NBP.0664 final report. Meat and Livestock Australia, Sydney, NSW, Australia.
Holmes WE (1990) Phosphorus and beef production in northern Australia. 11. A case study approach to the economic assessment of phosphorus supplementation. Tropical Grasslands 24, 250–255.
Holmes WE, Chudleigh F, Simpson G (2017) ‘Breedcow and Dynama herd budgeting software package. A manual of budgeting procedures for extensive beef herds.’ (State of Queensland, Department of Agriculture and Fisheries: Brisbane, Qld, Australia). Available at https://www.daf.qld.gov.au/animal-industries/beef/breedcow-and-dynama-software [Verified May 2017]
Jackson D, Rolfe J, English B, Holmes B, Matthews R, Dixon R, Smith P, MacDonald N (2012) ‘Phosphorus management of beef cattle in northern Australia.’ (Ed. I Partridge) (Meat and Livestock Australia Ltd: Sydney, NSW, Australia)
Kerridge PC, Gilbert MA, Coates DB (1990) Phosphorus and beef production in northern Australia 8. The status and management of soil phosphorus in relation to beef production. Tropical Grasslands 24, 221–230.
Makeham JP, Malcolm LR (1993) ‘The farming game now.’ (Cambridge University Press: Cambridge, UK)
Malcolm B (2000) Farm management economic analysis: a few disciplines, a few perspectives, a few figurings, a few futures. In ‘Proceedings of the annual conference of Australian Agricultural and Resource Economics Society’. (Australian Agricultural and Resource Economics Society: Sydney, NSW, Australia) Available at https://ageconsearch.umn.edu/bitstream/171920/2/malcolm.pdf [Verified May 2018]
McCosker T, Winks L (1994) ‘Phosphorus nutrition of beef cattle in northern Australia.’ (Department of Primary Industries: Brisbane, Qld, Australia)
McGowan M, McCosker K, Fordyce G, Smith D, O’Rourke P, Perkins N, Barnes T, Marquart L, Morton J, Newsome T, Menzies D, Burns B, Jephcott S (2014) Northern Australian beef fertility project: CashCow. Project B.NBP.0382 final report. Meat and Livestock Australia, Sydney, NSW, Australia.
MLA (Meat and Livestock Australia) (2018) Market information statistics database. Available at http://statistics.mla.com.au/Report/List [Verified August 2018]
Neithe GE (2011) New R and D for better herd health and productivity. In ‘Proceedings of the Northern Beef research update conference’, 3–4 August 2011, Darwin, NT, Australia. (pp. 34–40).
Robinson LJ, Barry PJ (1996) ‘Present value models and investment analysis.’ (The Academic Page: Northport, AL, USA)
Schatz T, McCosker K (2018) Phosphorus supplementation of Brahman heifers in phosphorus deficient country in the NT. In ‘Animal production 2018. Fostering innovation through the value chain. Proceedings of the 32nd biennial conference of the Australian Society of Animal Production’, 2–4 July 2018, Wagga Wagga, NSW, Australia. (Eds M Friend, S Hatcher, D Hopkins, P Hynd) p. 1x.
Spangenberg HP (1997) Phosphorus supplementation to grazing beef cattle at two sites in the Northern Cape. PhD Thesis, University of the Orange Free State, Bloemfontein, South Africa.
Ternouth JH, Coates DB (1997) Phosphorus homeostasis in grazing breeder cattle. Journal of Agricultural Science, Cambridge 128, 331–337.
| Phosphorus homeostasis in grazing breeder cattle.Crossref | GoogleScholarGoogle Scholar |
Tudor GD, O’Rourke PK (1980) The effect of pre- and post-natal nutrition on the growth of beef cattle. 2. The effect of severe restriction in early post-natal life on growth and feed efficiency during recovery. Australian Journal of Agricultural Research 31, 179–189.
| The effect of pre- and post-natal nutrition on the growth of beef cattle. 2. The effect of severe restriction in early post-natal life on growth and feed efficiency during recovery.Crossref | GoogleScholarGoogle Scholar |
Wadsworth JC, McLean RW, Coates DB, Winter WH (1990) Phosphorus and beef production in northern Australia. 5. Animal phosphorus status and diagnosis. Tropical Grasslands 24, 185–196.
Whish G (2011) ‘Land types of Queensland. Version 2.0.’ Prepared by the Grazing Land Management Workshop Team, PRO7-3212. (Department of Employment, Economic Development and Innovation: Brisbane, Qld, Australia) Available at http://www.futurebeef.com.au/knowledge-centre/land-types-of-queensland/ [Verified June 2019]
Winks L (1990) Phosphorus and beef production in northern Australia. 2. Responses to phosphorus by ruminants: a review. Tropical Grasslands 24, 140–158.
Winter WH, Coates DB, Hendricksen RE, Kerridge PC, McLean RW, Miller CP (1990) Phosphorus and beef production in northern Australia. 4. The response of cattle to fertiliser and supplementary phosphorus. Tropical Grasslands 24, 170–184.
