To feed or to not to feed? More results coming soon

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1 To feed or to not to feed? More results coming soon Kate & Chris Dorahy Overview Background System context why we do what we do Feedlot set up How & why we use EID Does feeding pay? 1

2 Background In 2007 We invested in a large AI program selecting top Aus & NZ prime lamb genetics with a focus on fertility and growth Objective to set up the best self replacing prime lamb flock to deliver our clients a profitable, flexible and sustainable system and, Produce an article consumers want Background Our operation : 857 ha incl. home block (Nareen) and 4 lease blocks (Wando Bridge, Yambuk x2, Orford) During this time joined up to 5000 ewes and turned off up to 8000 lambs 2015: joined 2700 ewes on 560 ha (Nareen, Wando Bridge). 2

3 Background 2014 staged exit from 3 out of 4 lease blocks (Jun & Nov) Sold down SIL ewes (June) Brought home lambs from lease blocks Nov 2014 Planted 50 ha, standing oats (May/June 2014), 50 ha summer crop (Aug 2014), 30 ha established lucerne to handle 4200 lambs from Nov Feb. Hoped for average but planned for failed spring Challenges of Farming Developing and running the system in context of: Variable climate Variable commodity prices High input costs Reducing debt and building equity Need a system which is simple, flexible, profitable and sustainable that can be replicated easily 3

4 Variable Climate Variable Prices Debt High costs Management (Business, Operations & Marketing) Strategy, Costs, Cashflow, Infra. Invest, Risk mgt, BMP (eg. LTEM), Technology ( eg. EID, LAMBPLAN), Labour efficiency Flexibility Performance Genetics: Flexibility High fertility Rapid growth Resilience Easy care Mothering Efficiency Simplicity Soil fertility & Pasture base: Ewes (75%) Perennials (Phalaris/ sub clover, some ryegrass) Lambs (25%) High Q weaning feed Rape, lucerne (Post wean) Backgrounding/ Insurance (oats) Supplementary feeding Grain Trail feeding Feeders in paddock Feedlotting Hay/ Straw Containing ewes Marketing Supplying what customer wants & getting paid accordingly Optimise $/unit Stocking rates, Lambing % and growth rates Optimise kg/ha Optimise $/ha Sustainable profit and equity growth over time Relative Energy/ Feed balance Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Twin bearing ME reqt (MJ/day) Feed balance "Average" year Feed balance "Good " year Feed balance "Bad" Year Twinning ewe ME reqt 1 Jan join Twinning ewe ME reqt 15 Feb join 4

5 150 Joining (5 wks) Lambing (5 wks) Weaning wks) Shear ewes Relative Energy/ Feed balance Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb High risk (autumn) Feed balance "Average" year High risk (late Critical spring) feed gap (winter) Low risk (late winter/early spring) Feed balance "Good " year Twin bearing ME reqt (MJ/day) Feed balance "Bad" Year Twinning ewe ME reqt 15 Feb join Management responses to Failed autumn Containment feeding to create feed wedge Joining later to minimise ewe energy deficit Tight joining (35 days) to minimise tail lambs Perennial pastures & annual ryegrass 5

6 Management responses to Failed spring Standing oats (50 ha, 4000 lambs, 4-6 weeks, low risk) Grain imprinting lambs on ewes (trail & feeders) to enable supplementation post-weaning, backgrounding & feedlotting Origins of our Feedlotting system Bought farm in May 2009 Lots of lambs on the ground Feed disappeared end of November 2009 Cashflow tight (all costs, no income yet) Nearly everyone discouraged feeding/ finishing Better off to quit em, No money in it (Now you see lambs on feeders everywhere) 6

7 Origins of our Feeding system Patched up three old feeders Makeshift Pens Bought in mix from Horsham Stock Feeds Hired tractor from neighbour Bought second hand Farmmate Feeder (March) Simple & low cost using available pens & yards 5 pens each holding lambs Gradual investment in equipment and infrastructure 7

8 2 feeders/ pen, lambs/ feeder Can have lambs on feeders Ad-lib straw, Clean water, Ad-lib lime and salt (80/20) Shade & shelter (critical) 8

9 Blend own feed mix Second-hand Farmmate spilt bin feeder (purchased in 2010) 80-85% barley % legumes (lentils, chickpeas, peas, vetch, lupins) 9

10 Draft lambs into lines using Second hand Racewell Auto-drafter (Purchased 2008) < 34.5 kg (backgrouded either on standing oats, summer crop, lucerne, dry feed with grain (trail or feeders) (V. flexible depending on whats there) kg & kg, (lick feeders), 42+ (Open feeders) Lambs in feedlot for 4-6 weeks Turned out at minimum kg, av. 50 kg lw. Individually assessed for fat cover (3-4) Target 50 kg lw kg cw. (grid kg - domestic) 10

11 Have delivered lambs to most abattoirs (Frewstall, CRS, Hirds, Midfield, JBS) Supplied directly to Westside Meat Australia Bacchus Marsh since 2011 Consignments of delivered every 3-4 weeks kg, 47-48% yield Direct relationship with Westside fantastic for understanding what customer wants and delivering accordingly 11

12 Priority access to kill space when lambs are ready Get paid a premium for consistently delivering lambs to specifications Provides confidence in holding and feeding lambs knowing have a market Tailor breeding program to suit end-market Reduces risk by spreading marketing options and appreciating stock value Can still sell ewe lambs for breeding or meat 12

13 Role of EID in managing risks Used EID technology in all ewes since 2008 Role of EID in managing risks Recorded preg status, weight, CS, type, wool Info used to: retain best ewes for core breeding flock and auto-draft ewes into optimal management groups Enable performance recording of large numbers in Stud to accelerate genetic gain Facilitate management across external blocks 13

14 Role of EID in managing risks 2014 put EID in all lambs at marking Pedigree matchmaking trial for commercial ewes & lambs in collaboration with Tru-Test Role of EID in managing risks Track growth of lambs through system (Standing crops, summer crop, lucerne, feedlots) Collect carcase data at abattoir & link to dams Calculate efficiency of commercial ewes Use info to influence breeding decisions Collaboration with DEDJTR 14

15 Results from EID 2068 lambs, and 1365 ewes matched Average lamb weight (kg) Key EID benefit Identifying individual growth rates (u/s variation) Timely identification and response to declining growth rates, prioritise allocation of scarce green feed Kill 1 (444 lambs) Kill 2 (173 lambs) Kill 3 (152 lambs) Kill 4 (222 lambs) 20 8/10/ /10/ /11/2014 7/12/ /12/ /01/2015 5/02/ /02/ /03/2015 6/04/ /04/2015 Date 15

16 Key EID benefit Ewes < 65 kg most efficient (wrt NLW and kg/kg) Lambs weaned or Ewe efficiency (%) Lambs weaned (%) Ewe efficiency (%) 0 < >71 All Purpose bred for greater lamb Ewe production weight at - flexible, weaning profitable, (MWWT) sustainable (kg) Results from EID Post weaning growth rates of multiples 5% higher than singles. No difference in carcase yield between singles and multiples (47-48%) Mostly wethers so not enough data to compare yields and growth of ewes and wethers 16

17 Results from EID Kill 1 lambs were woolly and yielded 2% less (also 2kg less lwt) Individual growth rates highly variable (-100 to g/hd/day) Growth rates increase with More protein Less head per feeder & fewer head per pen Regularly separating shy feeders into separate pens turning them around very quickly. Further analysis (coming soon ) Remaining kill data Effects of ewe age on NLW, WWT, growth, yield (50% of ewes < 2 y.o) Effects of gender (more ewe lambs in later Kills) 17

18 Does it Pay? (HSF calculator) Year Total Total Profit Income Cost ($/hd) / / Average /15 Cost of feed $270/ t vs Pellets $400/t Pellets have to give additional 135 g/day extra to achieve same profit at these costs Profitability of Standing oat crop? Option 1 Option 2 Grazing Standing Oats Area (ha) Establishment cost ($/ha) 200 Establishment cost ($) Stocking rate (Stock/ha) 7 80 Stocking rate (Lambs) Entry weight (kg) Growth rate (g/day) 150 Time on crop (Days) 30 Liveweight gain (kg/hd) 4.5 Exit weight (kg) 38.5 Price ($/kg cw) Value ($/hd) Income ($) 36, Additional value ($/hd) 9.11 Additional Income($) (incl. estcosts) 26,450 18

19 Profitability of Standing oat crop? - sensitivity analysis Price increased from $ in Dec to current price of $ yesterday in Hamilton Feeding systems provide options Even if price decreases, Standing Oats keep lambs in forward condition, which should attract a premium in poor quality yardings If have a feeding/ finishing system, can sell at any point depending, giving you staged marketing options if price spikes or about to fall 19

20 Summary Feeding and finishing is profitable Keeps lambs in forward conditions providing staged marketing options Adds value ($/hd, kg/ha and $/ha) Need to carefully manage protein supply Good back grounding very important Summary Need to know costs to make decisions If you cant measure it you cant manage it EID critical in this, especially identifying individual variation and allocating scarce resources when things are tight 20

21 Summary Have confidence to run own race (ie. Develop a system that works for you) Have a plan with contingencies if things change (season, prices, costs) Need strategic investment in infrastructure and equipment BUT can be done on the cheap to start with. Acknowledgments DEDJTR for support in carcase monitoring at Westside Meats and original EID funding (2008& 2009) Westside Meats Scott Davis Tru-test 21

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