Productivity of Hereford, highgrade Simmental and Belmont Red beef herds in central Queensland 6. Whole herd income and gross margins

Abstract

Hereford, highgrade Simmental, and Belmont Red breeding and fattening herds were modelled using comparative productive traits established in a research program. These traits included survival and reproductive rates and liveweights of breeders grazing predominately improved pasture, and growth rates from weaning to sale under either pasture or pasture-plus-crop nutritional regimes. It was assumed that steers were targeted to the grass-fed Japanese market, which required carcass weights of 280-380 kg. Net income was estimated by developing a hypothetical property capable of supporting 1000 adult equivalents and using best-bet estimates of the variable and fixed costs of production for each herd. Belmont Red model herds produced higher net income ($A58 800) than Hereford ($19 000) or highgrade Simmental ($8 000) herds under the pastureonly regime. When surplus heifers and steers had access to summer and winter crops as well as pasture, net income was Belmont Red $60 600, Hereford $34 400, and highgrade Simmental$20 400. The lower earning capacity of the Hereford than the Belmont Red was due to lower herd output; higher variable costs, mainly due to higher costs for bulls and for tick and dystocia control; and lower prices, due to a smaller proportion of cattle meeting preferred fat scores. The difference between the Hereford and highgrade Simmental herds was mainly due to price reductions for the highgrade Simmental slaughter cattle because of failure to meet preferred fat scores. Their large mature size and, hence, fewer numbers to make up 1000 adult equivalents also contributed.