Dwayne Cowin - Senior Consultant Perrin Ag Consultants

The Dairy Beef Opportunity

This article was originally published in Country-Wide Magazine in May 2022

Beef finishers have the opportunity to cash in on the dairy industry’s supply of bulls, writes Perrin Ag Consultant Dwayne Cowin.

Despite 100kg dairy beef calves falling out of favour with beef finishers over the past couple of years, an 18-month bull finishing policy remains one of the most profitable livestock trading enterprises within drystock operations.

Success of this enterprise, though, is based on the requirement for the bull to achieve an average daily liveweight gain of 0.9kg/day over its lifetime on farm.

While the financial performance of the 18-month bull finishing enterprise still consistently outperforms other beef finishing and/or dairy support enterprises, there seems to be recent apprehension for beef finishers to buy 100kg calves in the spring for the following reasons:

  • Summer rainfall is becoming more variable and less predictable, irrespective of farm location
  • The hotter summer temperatures; and/or
  • The increasing level of breeding stock performance in general over most farms, therefore most farmers are carrying more stock over summer (i.e. finishing lambs) and placing additional feed pressure on a variable feed supply.

Despite the above, opportunities for supply of dairy beef calves are increasing, with the dairy industry showing increasing awareness around the sensitivity of on-farm euthanasia and selling bobby calves.

Relative profitability of bull finishing

One would hope the financial performance of farming bulls would make up for the common pain points associated with farming them. These are the increased management complexity with having to farm more mobs, the potential for increased R&M costs and the strategically left ‘bull holes’ they tend to leave behind around troughs, gateways, gullies etc.

Table 1 shows analysis comparing an 18-month bull finishing enterprise to other livestock finishing and/or dairy support enterprises on a dollars per kilogram of drymatter (DM) consumed basis.

As Table 1 shows, the 18-month bull finishing policy still has the ability to generate the strongest financial returns on a cents per kg DM basis at 23 cents per kilogram of drymatter eaten. The 18-month bull policy also has the potential to deliver high per hectare returns. For example, assuming a bull wintering stocking rate of 2.2 bulls per hectare, a gross trading margin of $2040/ha ($928 x 2.2) can be generated from a livestock class that only has to be wintered once.

The bull policy also generally fits well with seasonal pasture growth, where the calves are bought in spring as pasture growth rates are lifting, and the older bulls are sold in the summer/autumn when pasture growth rates decline again.

The bulls are generally wintered at a lower stocking rate, therefore have a lower feed demand per hectare, and generally this aligns with the lowest pasture growth rate period of the year.

Successful bull finishing

The biggest determinant of success for the 18-month bull finishing enterprise is the requirement for the bull to achieve an average lifetime liveweight gain on-farm of 0.9kg/day.

Table 2 shows the required target LW and subsequent gains at six key periods for a spring-born bull, from entry into the bull finishing system through to sale to the works.

While achieving the lifetime target LW gain of 0.9kg/day is pushing towards top end performance requirements, failure to do so can have the following implications on the bull finishing and/or overall farming system:

  • The bulls have to be retained longer into autumn or early winter to achieve the target sale weight (which could place additional pressure on the feed budget)
  • The bulls have to be sold lighter at the same target sale date (thus reducing the profitability of the enterprise)
  • The bulls do not achieve a finished target sale weight, and they either have to be sold store or retained for a second winter. These bulls normally get caught in a ‘no-man’s land’ of about 450kg LW, and are at a weight of being ‘too big to sell store or winter again’, yet ‘too small to finish’.

Conversely, achieving a lifetime LW gain average above the 0.9kg/day means bulls can either be:

  • Sold earlier at the same target sale weight, or
  • sold heavier at the same target sale date.

For example, lifting lifetime average LW gain to 1.0kg/day means the bulls could be sold one month earlier at the same sale weight (and would lift the cents/kg DM return to 25 cents/kg DM); or be sold an extra 15kg CW heavier at the same sale date (and would earn an extra $81/head based on the heavier sale weight).

Successful 18-month bull farmers

Based on the average LW gain of 0.9kg/day, most aspects of the farming calendar need to go ‘right’ for this to be achieved. While it may be easy to simply work out the required LW gains based on when the bulls are targeted to be bought and sold, many farmers struggle to pull off the required target gains.

But there are a number of common themes amongst successful farmers who achieve at or above these target LW gains and operate a successful bull beef finishing enterprise. These include:

  • Setting up a bull finishing system which allows individual bull wintering rotations with mobs of between 25 to 40 bulls, at a stocking rate of 2.0 to 2.4 bulls per hectare
  • Having a discipline or the ability to pay attention to detail on all aspects of the bull finishing enterprise;
  • Ensuring replacement bull calves are well-weaned and on-farm at a minimum of 110kg on or before November 1 annually 
  • Ensuring “feed quality is king” particularly over the first summer as bull calves – and having either a ‘good natural eye’ or robust grazing plans to achieve high quality feed in the required quantities are available. This will ensure target LW gains are achieved
  • Having a regular weighing and monitoring programme to assess actual LW gains
  • Having the skillset and ability to make timely decisions if LW gains are below target, and potentially sell other stock classes earlier, or delay other planned purchases
  • Potentially providing supplements if the animals drop below target LW gains due to pasture quality or quantity limitations
  • Having a well-executed animal health plan, so the bulls are never ‘checked’
  • Having an average May 1 bull LW of over 256kg heading into winter
  • Having a May 1 average pasture cover target of over 2000kg DM/ha
  • Ensuring the bulls still grow at 0.8kg/day over winter
  • Having an average November 1 bull LW of over 445kg
  • Potentially selling tail end bulls that are not going to reach the end target LW by March 1 as store bulls in November
  • Potentially killing bulls lighter than target over summer to ensure the calves maintain their target LW gains.

Despite what may seem like an exhaustive list of traits for the bull finishing system to be successful, an increasing opportunity exists to leverage off the dairy industry and implement a highly profitable finishing enterprise into most dry stock operations.

The profitability of 18-month bull finishing continues to outperform other beef finishing enterprises due to its high conversion of feed inputs into finished product. Also, running a relatively low wintering stocking rate (yet generating high financial returns) also presents other advantages, including a lower environmental footprint (especially compared to wintering older cattle, and achieving lower LW gains).

But just remember ‘feed quality is king’, and every day needs to be a growing day for the bulls in order for the farmer to realise the relative success of the enterprise profitability.



Lee Matheson

Tumuaki Whakahaere
Kaiwhakahaere Matua

B.Appl.Sc (Hons), FNZIPIM (Reg)

Nā tana whakapakeketanga i Pōneke i haere mai ai a Lee ki tana mahi nei. He Tāhū Paetahi Pūtaiao Otaota, ā, he mātanga hoki a Lee ki te tāhua mākete. Nā tana tūranga Pouwhakahaere e kore e kaha a Lee ki te puta ki ngā pāmu, heoi anō ki te puta atu ia ki waho, ka hākoakoa katoa ngā koko o tōna ngākau. He ahakoa kai te tari e mahi ana a Lee ināianei, kai konei tonu ia e kaha ana ki te tohutohu ki te arahi ki te tuku i ana matauranga rautaki a pāmu , ona whakaaro auaha, ana matauranga a Kāwanatanga, te mātai whakangao me te rangahau ohaoha ki ngā taringa pakiki.

A waho atu i a Perrin Ag, he tangata aroha ki te whakaako whutupōro, te mātakitaki i ana tokotoru e pakeke tupu ana me te ngaki māra tahi me tana hoa rangatira a Haidee.

"E aroha ana ahau ki te whakamana i ngā tāngata i o mātau wāhanga tuatahi me te ngahau o te kite i ngā kiritaki e tutuki ana i a rātau hiahiatanga. Mēnā ka taea e tātau te whakahauhau i nga kaiahuwhenua kia whakauru ki o rātau kiritaki, kia nui ake te whakauru hohe ki a rātau mekameka putanga me te tirotiro i a rātau umanga mā tētahi arotahi whānui ake, kātahi ka whakaaro ahau he nui ake te wā e heke mai ana a tātau mahi."

Abbey Dowd

Kaiwhakahaere

B.Ag.Sc (Hons), MNZIPIM

I uru a Abbey ki Perrin Ag i te wā o Hui 2023 hei wāhanga o te hōtaka tono mātauranga o te umanga, o Empower.

I tipu ake a Abbey e karapotitia ana e nga pāmu miraka kau i roto i tētahi iwi tata i Waikato ki te Tonga. I kite a ia i te tuatahi me pēhea te tautoko a nga kaiahuwhenua o te rohe i tōna iwi, koia ia i whakaawe ai i a ia ki te ako i te Whare Wānanga o Lincoln.

I nga wā katoa e mīharo ana te tipu ake i roto i tētahi iwi ā-taiwhenua o Abbey i nga wā katoa e hia nga kaiahuwhenua o te rohe e āwhina ana ki te iwi. I pīrangi a ia ki te āwhina ki te whakahoki ki te umanga me te tākaro i tētahi wāhanga ki te āwhina i to mātau wāhanga tuatahi kia whakaputa tonu i te kai kounga i runga i te āhua mārō.

I te tau 2022, i pau i a Abbey te raumati hai takawaenga i runga i tētahi o nga mahi miraka tauhokohoko tuatahi a Aotearoa. Ko tana kaupapa Honours e rangahau ana i te miraka deer i te taha o ētahi atu mahi miraka tūturu ake, me te arotake i ngā āheinga whakanao o te umanga miraka.

"I te tipu ake kaore ahau i noho i runga pāmu, engari i mōhio tonu ahau e hiahia ana ahau ki te mahi i te wāhanga pāmu. I pīrangi ahau ki tētahi tūranga i reira he toenga i waenganui i te mahi me te pāmu, ā, ka taea e au te tautoko i nga kaiahuwhenua kia whiwhi ai i te pai rawa atu i a rātau umanga."

Sam Gray

Kaiwhakahaere

I tipu ake a Sam i runga i te pāmu miraka kau i te Raki Tawhiti. I muri iho i tana whiwhinga mai i te Whare Wānanga o Otago i te tau 2005 me tētahi tohu Honours i roto i te hangarau hangarau rāpoi ngota, he maha nga tau e mahi ana a ia i roto i te rangahau rongoā i Aotearoa me Pākehā. I a ia e hoki ana ki Aotearoa i te tau 2012, e whā nga wā i pau ai i a ia te pāmu miraka kau i Te Whenua o Raki i mua i tana hokonga i tētahi paraka 56 ha i Taupо, i reira ia i kitea tuatahitia ai ki te pāmu i raro i te pū hauota. I uru a Sam ki Perrin Ag i te tau 2023, ā, ka mauria mai ōna pūkenga kaha e whakatūria ana e tētahi huarahi hāngai ki te whakaoti raruraru. I waho o te mahi pāmu me te tohutohu, tērā pea ka kitea e koe e rere ana a ia i te hī ika, te whaiwhai, te papa huka rānei.

"He tokomaha nga kaiahuwhenua e rongo ana i te uaua i mua i te huringa tere o te whenua mana. E tautohe ana ahau ki te āwhina i nga kaiahuwhenua kia mārama he aha te tikanga o ēnei ture taiao mo a rātau umanga, me te tuku rongoā māia e āhei ai rātau ki te mahi tonu i ā rātou mahi tino pai, i a rātau e noho tautuku tonu ana".

Danni Armstrong

Kaiwhakahaere pūtea

Pakeketia a Danni i te pāmu kau i Atiamuri ka noho hoki mō te rima tau hai pou hāpai kūtētē kau. He ahakoa tana mahi pāmu ehara i te mea ka noho motuhake ki tēnei mahi, ka aro atu hoki ki te rīhi motukā, ki te hauora me te mahi moana. He kaha tana aronga ki ngā take whakahaere me te tiaki moni, mātua ko te manaaki me te atawhai i ngā tini manuhiri ka whakatata mai, ka rua ko te tiaki i te taha ki te ao hangarau pēnā me ngā whārangi pāpāoho ki te ao hou ko te whakahaere tuku motukā, ā, tae rawa ki ngā kaupapa ako, te whakarite rōhi -a-mahi, H&S me te whakatika hapa. I whakapiri mai a Danni ki a Ag i te marama o Mei 2021, he ahakoa he tauhou he mātanga ki tōna ao pākihi koi i tāhuri mai ia ki tēnei whānau.

He wahine pānui pukapuka me ōna ngeru, he wahine takahi whenua haere ngāhere.

“I runga i ngā tini kaupapa whakawetewete, ara ake ai ahau ia rā ia rā – kāre i tua atu i te whakamutunga o aku mahi tatau kia ea ai– e whai tūranga mana ai taku tu ngātahi me tēnei tīma”.

Duncan Walker

Tumuaki
Kaiwhakahaere Matua

B.Appl.Sc, MNZIPIM (Reg)

I te haerenga mai i tētahi papamuri pāmu maroke me te miraka kau, i nga wā katoa e hiahia ana a Duncan ki te tipu i nga umanga o te wāhanga tuatahi. Ahakoa he pāmu tawhito, he ngahere, he pūtea penapena rānei i waho o te kēti pāmu, ko te mahinga pakihi tūturu ko te hiahia o Duncan. I muri i te mākatanga mai i te Whare Wānanga o Massey me tētahi Bachelor of Applied Science i Agribusiness, ko te wā tuatahi o Duncan ki te arotau i tētahi umanga pāmu mā te mahi i tētahi tahuringa miraka kau. Na te kaupapa Duncan i whakahaere te tahuringa, a, ka haere tonu te whakahaere i te pāmu miraka kau mo te toru tau anō.

Mai i te hononga atu ki Perrin Ag i te tau 2011 ka mahi a Duncan me te whānui o ngā kiritaki tae atu ki ērā 'i waho o te kēti pāmu'. Mā tōna papamuri kaha i roto i te tātari pūtea penapena, te rautaki pakihi me te whakahaere kaupapa, kei te nui haere te mahi a Duncan me ngā kiritaki ki te tātari me te whakauru i ngā pūtea whenua me ngā pūtea rākau ki roto i ā rātou umanga pāmu.

“Ko te hāpai o ōku hoa me te arataki i a rātou me ngā kōpikopikonga huhua o te ao hou taku oranga ngakau. Kia tū rangatira ai rātou, he aha i tua atu!”

Lee Matheson

Tumuaki Whakahaere
Kaiwhakahaere Matua

B.Appl.Sc (Hons), FNZIPIM (Reg)

Nā tana whakapakeketanga i Pōneke i haere mai ai a Lee ki tana mahi nei. He Tāhū Paetahi Pūtaiao Otaota, ā, he mātanga hoki a Lee ki te tāhua mākete. Nā tana tūranga Pouwhakahaere e kore e kaha a Lee ki te puta ki ngā pāmu, heoi anō ki te puta atu ia ki waho, ka hākoakoa katoa ngā koko o tōna ngākau. He ahakoa kai te tari e mahi ana a Lee ināianei, kai konei tonu ia e kaha ana ki te tohutohu ki te arahi ki te tuku i ana matauranga rautaki a pāmu , ona whakaaro auaha, ana matauranga a Kāwanatanga, te mātai whakangao me te rangahau ohaoha ki ngā taringa pakiki.

A waho atu i a Perrin Ag, he tangata aroha ki te whakaako whutupōro, te mātakitaki i ana tokotoru e pakeke tupu ana me te ngaki māra tahi me tana hoa rangatira a Haidee.

“Kai reira kē te ihi o taku mahi, ko te whakarangatira i ngā tangata mahi tahi pēnei i a tatou me te whakaputanga o ngā apataki ki te ao marama i runga i ngā whakatutukitanga a wō rātou tumanako-ā-ngākau. Mēnā tatou e tāea ki te whakaakiaki i ngā tangata pāmū ki te hono ki wō rātou kiritaki, me te ū a ringa raupā nei ki te ara whakaputa, me te titiro whānui ki tā rātou pākihi , ka harikoa katoa ahau i te mōhiotanga he ao ki tua mō tēnei tūmomo mahi”.