The Profit from improved pasture skills Producer Initiated Research and Development (PIRD) project was undertaken by the Circular Head Beef Business Group in Tasmania to address the low levels of profitability identified by using the MLA Cost of Production calculator to conduct benchmarking activities. As low as they were, this analysis demonstrated that the group’s profit levels were still double the state average suggesting that the outcomes of the project could have broad application for other beef producers.
The low profit levels were identified as being a function of sub-optimal pasture growth and utilisation and a high proportion of feed being consumed to maintain animals rather than for liveweight (or meat) gain.
The group undertook a 2-day pasture management workshop and developed the PIRD project to look at the issues of increasing pasture growth and utilisation and increasing the proportion of pasture energy partitioned to liveweight gain. The PIRD was also used as a training activity where producers were coached on a monthly basis in the implementation of the principles from the pasture management workshop.
As a result of the PIRD, pasture utilisation among participants was increased by more than 40 percent, liveweight production per hectare by 73 percent and farm profit by 250 percent. In addition, there was also a significant amount of silage made and an increase in average pasture cover over the course of the trial. While these benefits were included in the profit calculation, it clearly highlighted that further profit gains are possible through the adoption of a higher stocking rate.
The trial demonstrated that there is significant potential for beef producers to increase their profitability by better understanding how to increase the amount of pasture grown and utilised on their property and how to optimise the proportion of pasture directed toward the production of a saleable product. These results are not considered to be limited to Tasmania but rather applicable across many production sectors throughout Australia.
The Profit from improved pasture skills final report will be available for download from the MLA website shortly. Subscribers to the MLA More Beef from Pastures eNewsletter will be notified when the report is available.