DEFA Agricultural Advisory Service Welcomes you to 2011 Spring Beef Focus Meeting. Thanks to: Geoff & Eric Taggart Marty & Milan Veterinary Practice.

House Keeping  Bio-security – please use the footbaths  Toilet facilities are available – please use them  No smoking  Please respect others that may be trying to listen  Mobile Phones – silent.  Careful on exiting – fast part of the road.  Hope to take no more than 20 mins per session and we aim to finish by 3pm.

Agenda  Profit = (Pvolume x Pvalue) – Pcosts (P= Product.)  Grading analysis  Nutrition –rationing cattle to help meet your target weight and finish level.  EBV’s- Understanding what they mean and using them practically in the herd to your advantage  Herd Health – Marty will talk about whole herd health, pneumonia in finishing cattle and dealing with calving difficulties  Suckler herd fertility – why this is important  Understanding your costs.

Grading Analysis

 Has this kind of information been useful?  There are weaknesses Spec is only measured as grade and not weight Doesn’t indicate % of value gained Doesn’t cost out the changes – only indicates the potential income.  Developed further with the new matrix.

GRADING ANALYSIS

Proportion in spec and in the correct weight band52%£ per beast Average Proposed Payment (assuming £2.50/kg)92.9%£58,559 (net of weight deductions) Potential impact of moving from grade O+ to R£1, % Potential impact of moving from grades 4H / 5L / 5H to 4L£2, % Potential impact of moving from grade O- to O+£0 0.0% Potential impact of moving from fat class 2 to 3£ % Total potential value available£4,799 Per head£53.33

Measure Progress

Grading Analysis

 Important – Grading analysis Indicates –May not be absolute especially with values. –Need to check your own data. –Does not guarantee improved total farm profit. –What does this mean to me? More or less £?

Grading Analysis  In Conclusion: –To understand if change is needed and if so what changes are needed we must know where we stand today. –The more we know, the better the decision we can make. –Grading analysis is free, confidential, IoMMeats will be taking it forward. –In the mean time ask us for your own data.

Suckler Herd Fertility  Profit = (Pvolume x Pvalue) – Pcosts (P= Product.) Calving per cow/heifer put to the bull95% Barren Cows5% or less Cows Calving in first three weeks65% Bulling period – 9 weeks for cows 6 weeks for heifers Calf Mortality (birth to weaning)<2% Calves reared (per cows bulled)94% Adult Cows with difficult calvings<5%

Suckler Cow Fertility  Why is suckler cow fertility important? –Reduce Costs (Pcosts) –Increase output (Pvolume & Pvalue) 2010 of the herds involved. Weaning rate ranged by 24% (best to worst) 16% less than target of 95% Calf mortality ranged by 11% (best to worst) 9% worse than the target.

Suckler Cow Fertility  Reduce costs? –No over feeding/under feeding –Reduced labour –Reduced vet (cows & Calves)  Increased output? –More calves weaned –Heavier calves weaned – worth more? –Increased heifer selection –Improved cattle management

Potential income lost? Herd Size Weaning Rate % 100£4,000£8,000£12,000£16,000£20,000£28,000£40,000 95£3,800£7,600£11,400£15,200£19,000£26,600£38,000 90£3,600£7,200£10,800£14,400£18,000£25,200£36,000 85£3,400£6,800£10,200£13,600£17,000£23,800£34,000 80£3,200£6,400£9,600£12,800£16,000£22,400£32,000 Effect of % Lost production 24£960£1,920£2,880£3,840£4,800£6,720£9,600 16£640£1,280£1,920£2,560£3,200£4,480£6,400 5£200£400£600£800£1000£1400£2000 Total potential income based on calves valued at £400 hd. £96 /cow £20 /cow

Calving Pattern

Advantages of a Compact Calving Pattern  Labour –Less time supervising –Fewer late calvings reduces risk of more difficult calvings –Management operations on bigger batches.  Disease Reduces risk of disease spread Herd fertility Improved service rate  Weaning Weight –Calves born earlier are heavier at weaning  Marketing Even batches of cattle Sold earlier & heavier  Replacement heifers –More to select from.

Reduced value of calf Calving periodWeaned weightCalf ValueTarget Actual 3 weeks Ave Kg (DLWG 1.3kg)(weight x £1.5kg)NumberValue /£NumberValue /£ , , , , , , , , ,695 later ,125 Total , ,280 Per Cow £ Improvement per cow calved £31.4 £ Improvement per cow mated £28.9 £ Improvement £28,050.6

Are we adding this up?  5% below 95% target weaning rate =£20  Average calving pattern £29  Already we’re at £49 per cow mated.  Calf mortality £36 per cow (£85 cow) Herd Size Mortality Rate % 1£40£80£120£160£200£280£400 2£80£160£240£320£400£560£800 3£120£240£360£480£600£840£1200 4£160£320£480£640£800£1120£1600 5£200£400£600£800£1000£1400£2000 9£360£720£1080£1440£1800£2520£ £440£880£1320£1760£2200£3080£4400

Key Areas

What’s involved?  Free, confidential  Forms can be down loaded from  Takes an hour (approx)  Contact the DEFA Advisory Service  What’s stopping you?

Conclusion  Profit = (Pvolume x Pvalue) – Pcosts –Increased volume –Increased value –Reduced costs –Understand your own performance and the reasons for it. –No one has mentioned when you should calve just that there is a benefit to improving fertility and calving in a tighter period.

Managing Costs

 The beef price needs to be higher…..  We need more……  How much more do you need?  More.  What effect will that have on your profit margin?  It will get bigger  OK. What was your average beef price last yr?  Don’t know.  What is your profit margin Now?  Not sure, but it’s not enough!

Managing Costs.  Profit = (Pvolume x Pvalue) – Pcosts Pvolume – Kg’s sold/produced Pvalue - £ sold for. Pcosts – Fixed and Variable What Influences these three P’s? Raises the Q’s – how am I doing, could I do better, what if I reduce/increase?

Product Volume  Influences? –Stocking rate Volume of Feed grown and utilised –Grass/feed/purchased feed Pcosts Weaning rate –fertility Growth Rate –Daily live-weight gains (DLWG). –Time to slaughter

Product Value  Influences? –Market – volatile

Product Value  Timing of Supply –Target seasonal trends –Contract & fix a price  Hitting Market Requirements  Even batches (store)  Health Status

P Costs  Costs can be larger than Pvolume x Pvalue  Income (value) does not always keep up with increasing costs. ForageTelephone ConcentrateWater & rates Vet & MedProperty repairs Sundry costsProperty investment Running MachineryLabour Replacing machineryRent ContractorFinance Electricity

NI 2007/8 (ranked by net profit) £1.24 per kg 300kg carcass =£372 £0.10 per kg

NI 2007/8 £450 per cow.

Choice or Chance?  What Else? –IoM Meat –DEFA & CCS £ –Weather Options: –Carry on regardless –Carry on knowing we are doing OK –Change – ?

In Conclusion  Profit = Pvolume x Pvalue – Pcosts  Profit – Choice or Chance?  Manage what we can control  Understand current performance and ask “what does this mean for me?”  We are here to help

Improved Margins Through Breeding  The breeding, or genetic merit of beef cattle will significantly affect the way that: –1. the animal is born –2. the animal grows –3. the animal goes to market  Anything that affects all of these things will also affect profitability

Improved Margins Through Breeding  Cow herd genetics are relatively set, and slow to change  Fastest improvement in genetics of herd through sires  Bull/sires are 50% of herds – what is that worth?  Using “eye” only - educated guesswork  Using “eye” and EBV’s – more informed choice

Improved Margins Through Breeding  EBV = Estimated Breeding Value  Uses recorded figures for whole family and predicts the animal’s genetic merit for that trait  Pick the traits that best suit your herd, your farm, and your intended markets  EBV’s help identify within breed differences in potential

Improved Margins Through Breeding  1. the animal is born  EBV’s which will help predict the way a beef animal is born –Calving ease – high positive scores (%) means more calves out alive and less assisted calvings –Gestation length – (days) negative scores mean shorter gestations, and easier calvings –Birth weight – lower values (Kg) indicates calves which are lighter at birth, and likely easier calvings

Improved Margins Through Breeding  2. the animal grows  EBV’s which help predict how the animal will grow –200 day weight (Kg) – early growth potential –400 day weight (Kg) – yearling weight potential –600 day weight(Kg) – animal’s growth beyond yearling and towards finished age

Improved Margins Through Breeding  3. the animal goes to market  EBV’s which help predict how an animal will kill out –Carcase weight – genetic difference in carcase weight (Kg) at standardised age 650 days –Eye muscle area – more positive figures indicate better muscling on a 300Kg dressed carcase –Rib fat – higher positive figures suggest an animal with more subcutaneous fat and earlier maturity –Retail beef yield – boned out meat yield as a % of boned out 300Kg dressed carcase. Higher positive figures suggest higher percentage yield

Improved Margins Through Breeding  “So what, EBV’s been around for a long time, it won’t make that much difference anyway”  Maybe not before, but now could easily be 30p/Kg DW (£90 per head on a 300Kg carcase) or more difference between in and out of spec  New proposed pricing grid, using EBLEX prices for week ended 16 th March 2011 (All steer price p/Kg LW)

Improved Margins Through Breeding

 It’s only a few %, why worry? 1. – it’s what’s in the long term interest of your business by supplying what the customer requires  2. – it’s a much stronger pricing signal than before, with bigger rewards and bigger deductions for being in, or out, of specification  Old deduction for fat class 2 vs. fat class 3 = 3p/Kg = 1% of 255p/Kg base price

Improved Margins Through Breeding

 Use EBV’s to pick the best traits within a breed to suit your needs – herd, farm and markets  Keep it simple –1. the animal is born –2. the animal grows –3. the animal goes to market

Improved Margins Through Nutrition  What you feed to beef cows and beef cattle will have a major effect on the way that: –1. the animal is born –2. the animal grows –3. the animal goes to market

Improved Margins Through Nutrition  Questions to ask:  Know what you’re feeding  Know why you’re feeding it  Know how much it’s costing you to feed it

Improved Margins Through Nutrition  1. the animal is born  The way in which the cow is fed from pre-mating, and throughout pregnancy will have a significant effect on the number of calves born, the difficulty of calving and the early life viability of the calf  Know what you’re feeding, why you’re feeding it, and how much it’s costing.

Improved Margins Through Nutrition  Analyse all of your forages, and USE those analyses to make up rations to suit what the animals require Silage 1Silage 2 Dry Matter20%31% ME Crude Protein9.3%13.5% 30Kg/head/day to 600Kg spring calving cows Energy under-supply: -30%, Protein under-supply: -2% Energy over-supply: +50%; Protein over-supply: >+100%

Improved Margins Through Nutrition  2. the animal grows  The most influence, in the shortest period of time, on weight and grade of beef cattle will come through nutrition  Start planning BEFORE weaning  Manage heifer calves and steer/bull calves in separate groups BEFORE weaning

Improved Margins Through Nutrition  Example of manipulating weight and grade in growing period through nutrition planning: – Common issue – underweight, overfat heifers  Time to address it – NOT in finishing period, have to tackle earlier  Separate cows into heifer and bull calf management groups, limit amount of creep feed to heifers  Formulate post weaning ration to limit growth rates, maximise growth of lean tissue and bone, minimise fat deposition until at least 10 months/320Kg liveweight

Improved Margins Through Nutrition  3. the animal goes to market  The final carcase weight and fat class of any beef animal will in combination with it’s genetic potential be mostly determined by it’s nutrition  The new level of rewards and deductions for being in or out of specification make it worth spending a little bit more time on getting the nutrition right to get the right grades

Improved Margins Through Nutrition  Example of manipulating weight and grade in growing period through nutrition planning: –Common issue at slaughter – continental cross steers being overweight and/or underfinished  Know what you are feeding in your finishing diet, why you’re feeding it, and how much it’s costing you  Over feeding (expensive) protein, and underfeeding quality or volume of energy in the finishing period will promote lean growth, especially in high genetic merit cattle

Improved Margins Through Nutrition  Two finishing diets for 500Kg steers Diet 1Diet 2 Good quality silage20Kg Barley1.50Kg2.70Kg Peas0.50Kg0.0Kg Cost per kg gain£0.93£0.64 Energy supply for 1.0Kg DLWG Under supply 10%Adequate supply Protein supply for 1.0Kg DLWG Adequate supply

Improved Margins Through Nutrition  Keep it simple –1. the animal is born –2. the animal grows –3. the animal goes to market  Know what you’re feeding, why you’re feeding it, and how much it’s costing you  Manipulate rations to get what YOU want to meet market requirements