B.PAS.0362 - Desktop analysis of opportunities for oil-enhanced forages

Summary

Increasing the oil content of vegetative biomass through precision genome editing could potentially increase the energy content of plants consumed by grazing livestock. The aim of this desktop analysis was to understand how the application of this technology could benefit Australian livestock industries as a precursor to further investment.

First, we undertook a sectoral analysis to identify the most important pasture and forage species in Australia, and prioritise these based on suitability for future climates, potential for commercialisation and adoption, and ease of genetic transformation. Six species, representing a range of forage types, were shortlisted for further evaluation.

We assessed how increasing the oil content of these forages up to 8% of dry matter could impact the productivity of grazing sheep and beef cattle and used a partial discounted cashflow analysis to understand profit-risk trade-offs.

The greatest value in feeding oil-enhanced forages was to increase the liveweight gain of growing animals, especially beef cattle. At the farm level, the equivalent annual profit from oil-enhancement was highest in forage crops (e.g., forage sorghum, forage oats), which are higher yielding than pastures, and can be grazed or conserved as hay/silage. At the industry scale, the greatest benefit would be from oil-enhancement of forages such as Phalaris, which are already widely adopted.

Objectives

The objectives of this project were to:

• Identify suitable forage species based on importance to industry, suitability for future climates, and ease of genetic transformation.
• Describe how changes in oil content could impact livestock production.
• Provide justification for further investment.

Key findings

The sectoral analysis found that use of improved forages is concentrated in southern Australia, and the literature and interest of seed companies is also focused on species relevant to this area. This analysis also indicated that the greatest uptake of improved forages was likely to be from the sheep and dairy industries.

Increasing the oil content of biomass improved livestock productivity and reduced emissions intensity in all scenarios evaluated, with the greatest benefits observed when oil-enhanced forages were fed to growing beef cattle. There was little productivity or economic benefit in using oil-enhanced forages to support animals at maintenance (e.g., dry ewes).

Of the species evaluated, oil-enhancement of forage crops (e.g., forage sorghum and forage oats) provided the greatest economic benefit per ha sown because they are higher yielding than pastures and can be grazed or conserved as hay/silage. Oil-enhancement of perennial grasses, such as Phalaris, would provide some benefits in more extensive grazing systems, but are a riskier investment for farmers in below-average seasons.

At the industry scale, the greatest benefits to the red meat industry would likely arise from the application of this technology to forages which are already widely adopted and adapted to future climates.

Benefits to industry

The results from this analysis highlight best-bet options for investment into oil-enhanced forages. Of the species evaluated, oil-enhancement of forage crops (e.g., forage sorghum and forage oats) are likely to provide the greatest economic benefit per ha sown because they are higher yielding than pastures and can be grazed or conserved as hay/silage.

Oil-enhancement of perennial grasses, such as Phalaris, would provide some benefits in more extensive grazing systems, but are a riskier investment for farmers in below-average seasons. At the industry scale, the greatest benefits to the red meat industry would likely arise from the application of this technology to forages which are already widely adopted and adapted to future climates.

MLA action

MLA using the outcomes of this project to inform new investments.

Future research

Animal feeding trials and duty of care experiments are recommended to validate the results of our modelling and confirm the safety of feeding oil-enhanced forages to livestock.