Maximising beef production and profits using high quality forages

Abstract

Key Project Messages
· Forage crops or perennial legume-grass forages can substantially increase beef output compared to perennial grass-only pastures.
· However, an increase in beef production does not always translate to a higher paddock gross margin.
· Forage costs and cattle price margin (sale price less purchase price, $/kg liveweight) also have a significant effect on the profitability of forages.
· Furthermore, a positive paddock gross margin does not necessarily mean that the forage type is going to be the most profitable option compared to other alternative uses of the land (e.g. perennial grass or grain cropping).
· Whole farm economic analyses, or profit budgets, estimate the value of the sown forage system to the ‘whole farm’ or business, relative to other alternative activities. These analyses incorporate additional costs associated with growing forages that are not captured in a gross margin analysis, such as differences between systems in un-paid labour, herd structure and capital.
· Whole farm economic analyses showed that perennial legume-grass pastures, particularly leucaena-grass, had a substantial advantage in terms of profitability, compared to perennial grass-only pastures and annual forage crops.
· Download the new guide to forage use: ‘Feeding forages in the Fitzroy’ and forage gross margin spreadsheets from the FutureBeef website: https://futurebeef.com.au/resources/projects/high-output-forage-systems-for-meeting-beef-markets/