Economic comparison of management strategy options for beef businesses

Department of Primary Industries, Queensland staff are investigating a range of management strategies and technologies aimed at making Queensland grazing businesses more profitable and drought resilient. This work was initially funded by the Queensland Government’s Drought and Climate Adaptation Program (2017-2021) with ongoing work continuing supported by the GrazingFutures Livestock Business Resilience Project (2022-current).

Economic analyses have been conducted to assess strategies and technologies relevant to grazing regions across Queensland. In addition, various resources have been developed to support decision-making during response and recovery stages of drought.

Fitzroy NRM region of central Queensland

A report summarising results for the Fitzroy NRM region of central Queensland is available for download: Fitzroy beef production systems – Preparing for, responding to, and recovering from drought (PDF, 3 MB).

In this region, assessment of alternative beef production strategies included:

• leucaena, other legumes, forage oats, feedlotting and HGPs for steers;
• better genetics for fertility, reducing foetal/calf loss, pestivirus management, inorganic supplements to address phosphorus deficiency, and feeding first calf heifers for breeders; and
• alternative markets such as organic beef, EU and Wagyu.

Lower cost strategies to improve drought resilience, as well as drought response and drought recovery strategies, were also assessed.

Northern Gulf NRM region of Queensland

A report summarising results for the Northern Gulf NRM region is available for download: Northern Gulf beef production systems – preparing for, responding to and recovering from drought (PDF, 4.5 MB).

In this region, assessment of alternative beef production strategies included:

• addressing a decline in land condition through a reduction in stocking rates and systematic wet season spelling;
• adequate wet season phosphorus supplements for all cattle;
• stylos, leucaena, production feeding, silage, agistment and changing age of turnoff for steers; and
• better genetics for fertility, home-bred bulls, reducing foetal/calf loss, and feeding first calf heifers for breeders.

Lower cost strategies to improve drought resilience, as well as drought response and drought recovery strategies, were also assessed.

A fact sheet summarising key

Central West Mitchell Grasslands of Queensland

A report summarising results for the Central West Mitchell Grasslands region is available for download: Central West Mitchell Grasslands — Management strategies for drought resilience (PDF 6 MB)

For this region, an integrated pasture and beef herd modelling approach was developed to allow the impact of climate variability on a range of grazing management scenarios to be modelled. This bio-economic evaluation found that setting livestock numbers based on safe pasture utilisation rate principles, but adopting a moderate degree of flexibility in altering livestock numbers in response to pasture availability, is likely to be the most profitable approach to grazing management while maintaining pasture and land condition over time. However, it was essential to economic viability that re-stocking occurred as soon as possible once good seasonal conditions returned.

Tactical strategies that may be applied in response to drought were also assessed in this report.

Maranoa region of Queensland

A report summarising results for the Maranoa region of Queensland is available for download: Maranoa beef production systems – Analysing management strategies to build resilience (PDF, 1 MB).

In this region, assessment of alternative beef production strategies included:

• Optimising steer sale age and female culling.
• Turning off weaner steers.
• Feeding supplements to steers.
• Grazing weaner steers on forage oats.
• Trading and backgrounding steers.

In addition, the value of growing 400ha of wheat as a cash crop, was investigated.

Northern Downs region of Queensland

A report summarising results for the Northern Downs region of Queensland is available for download: Northern Downs beef production systems – preparing for, responding to and recovering from drought (PDF, 2.7 MB).

In this region, assessment of alternative beef production strategies included:

• increasing age of steer turnoff, and optimising cow and heifer culling age;
• HGPs, and molasses production mix for steers;
• home-bred bulls, better genetics for fertility, reducing foetal/calf loss, first mating heifers as yearlings, and supplementing first-calf yearling heifers;
• converting from breeding to steer turnover, transferring steers from a Northern Gulf property to the Northern Downs property when both were owned within the same business, purchasing a Northern Gulf breeding property, and purchasing a steer growing and finishing property in the Dawson-Callide; and
• managing prickly acacia.

Rangelands of central-western Queensland

A report summarising results for the rangelands of central-western Queensland is available for download:  Rangelands of central-western Queensland – building resilient and diverse livestock production systems (PDF, 3.8 MB).

In this report, the following alternative livestock enterprises were assessed for profitability and resilience:

• self-replacing beef cattle herd
• steer finishing
• self-replacing Merino wool flock
• Merino wether sheep
• meat sheep, and
• rangeland meat goats.

In addition, the value of integrating or fully adopting several of the alternative enterprises, from the starting point of either a self-replacing (1) beef cattle herd or (2) wool sheep flock, was investigated.

Mulga Lands of south west Queensland

A report summarising results for the Mulga Lands region is now available for download: Mulga lands production systems preparing for, responding to and recovering from drought (PDF, 3 MB)

In this region, assessment of alternative beef production strategies included:

• • implementing the safe carrying capacity through a reduction in stocking rate;
  • weaning, pregnancy-testing and basic vaccinations;
  • increasing the age of steer turnoff from yearling steers to 18 months;
  • inorganic supplements in the dry period (S, P, N) and/or growing period (S, P);
  • converting from breeding to steer turnover;
  • controlled mating;
  • feeding whole cottonseed to the breeder herd
  • buffel paddock development; and
  • destocking in response to dry periods through a) livestock sales or b) sending breeders on agistment.

In addition, the alternative investment options of rangeland goat production and carbon farming were assessed.

Burdekin NRM region of Queensland

A report summarising results for the Burdekin NRM region of Queensland is available for download: Burdekin Rangelands beef production systems – Profitable management strategies to build resilience (PDF, 3 MB).

In this region, assessment of alternative beef production strategies included:

• increasing age of turnoff, from weaners to steers;
• cultivated strips of sown pastures (stylo / grass) for steers;
• using home-bred bulls, better genetics for fertility,
• annual supplementation with loose lick supplements providing N+P
• supplementing weaner and first calf heifers to improve conception rates and re-conception rates

In addition the analysis also considered scenarios to reduce foetal calf loss by 50% and genetic improvement.

Support available

We recommend seeking exploring your individual situation and seeking further advice before making any significant business decisions.

Queensland beef producers can take advantage of a free service of personalised economic analyses conducted, specific to their business.  This service is provided by the DAF team of beef economists and extension officers. The story of what one family has gained from utilising this service for their beef operation can be read here.

Email the beef team at breedcow@daf.qld.gov.au if you would like us to visit your property or call 13 25 23.