Grazing supply and demand in the Maranoa - matching long-term sustainability with profitability

Summary

Grazing system dynamics require a diverse managerial skillset to harness land capability for beef production whilst navigating seasonal variability and market signals.

Over three years, working with nine businesses over 15 properties, this project assessed current and potential long-term carrying capacity of nearly 1,600 km². All businesses were trained and coached in feed budgeting and were active participants in business benchmarking.

Through objective assessment of long-term carrying capacity of grazing lands and the financial health of the overarching business operating on that land, this project has demonstrated there is a synergy between sustainability and profitability of extensive grazing businesses.

Tools and resources were developed supporting enterprise planning, including adaptive capacity to climate risk influences on land condition, thus long-term carrying capacity and profitability. 

Objectives

The objective of this project was to support producers in a peer learning setting, to make the most productive, profitable and sustainable use of their land's capability through identification and adoption of appropriate practices and business management systems, foundational to achieving and maintaining good land condition.

Key findings

• Producers had independent, science-based assessment of long-term carrying capacity and land condition of their selected properties to benchmark their land resource's capabilities.
• Producers were trained in quantifying short-term carrying capacity (feed budgeting) and improved climate risk management skills, supporting their adaptive capacity and enterprise resilience.
• Access to expertise to support assessment of long-term carrying capacity is required to enable property managers to either learn how to undertake the process themselves, or find a suitably qualified technician to undertake the assessment and provide management advice based on their assessment.
• Benchmarking land resource capabilities should be included in benchmarking business performance. Including an evaluation of the health and condition of the natural assets which underpins a grazing enterprise provides a context for historical business performance and quantification for the value of implementing strategies to invest in good management of land condition.

Benefits to industry

Land condition has a big influence on current carrying capacity, independent of season and rainfall. This project helped producers set up monitoring sites and provided training in formal land-condition assessment and annual forage budgeting aimed to support capacity to continue to monitor land condition and better match stocking rate to carrying capacity year-to-year after this project ends.

The project was able to put real figures on improved carrying capacity and improved land condition for participating producers. If all properties could achieve land in A condition (as referenced in the project report), it is estimated the group could lift carrying capacity by over 6000 AE's. At a gross margin of $170/AE/year, that is close to $1million per annum gross turnover.

MLA action

Learnings from the project will be fed into MLA's adoption program to help direct further investment both in this learning structure and the topic itself.

Future research

Climate risk remains an area where further research investment could yield value.

Determining regionally relevant pasture growth green dates and subsequent production points needs further research and development.