An economic evaluation of traditional twinning and sex-controlled systems of beef production in southern Australia

Abstract

On a representative farm in southern Australia, the efficiency of beef production might be improved l.8 fold through changes in management practices and adoption of new techniques to induce twinning and to regulate the sex of calves born. Twenty-six modelled production systems were examined. Two of the three most efficient systems (kg meat per unit feed energy) produced crossbred calves, used twinning to produce more calves and sold them at yearling (18 months) rather than weaner (7 months) age. The other most efficient system was a single-sex all-female production system. Profit was calculated for each production system using a gross margins analysis (that is, total income minus variable costs). This, with the pattern of feed supply, feed consumption and labour use for each production system, was used in a linear programming model of a 'representative farm' to determine the optimum (most profitable) beef production system. Two of the three most efficient production systems were also the most profitable, being more than twice as profitable as the simplest traditional systems. The high cost of producing single-sex calves in the all-female system made it, and other systems using sex-control, unprofitable. Cows in systems with high net returns were very productive, had a high efficiency of lean meat production, but also a high feed requirement which forced a reduction in the optimum (most profitable) number of cows for the representative farm. Good management and attention to feed supply will be essential for these more profitable systems to be sustainable.