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Scoping the development of high value beef production from dairy bulls using forage based systems

MLA is scoping the development of high value beef production from dairy bulls using forage-based systems.

Project start date: 23 August 2021
Project end date: 23 August 2021
Project status: Completed
Livestock species: Grass-fed Cattle
Relevant regions: National
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Summary

With the shortage of beef animals across Australia, there is an opportunity to fill part of that demand through the development of cost-effective production systems for male dairy calves. This desktop study included a literature review and sensitivity analysis to determine where the knowledge gaps are and opportunities to pursue further R&D.
The results highlight several opportunities to develop low-cost high quality forage systems that are resilient to market price fluctuations.

Objectives

1. Compile a review on growth rates and nutritional requirements of male dairy calves (bulls and steers) post-weaning to achieve target growth rates for Australian domestic and export beef markets.
2. Report on a desktop modelling study (forage yield and growth rate responses to forages) including the economic analysis of the cost:benefit of feeding dairy bull calves post-weaning to meet a range of potential beef markets in Australia.
3. Provide recommendations for the development of strategies for the dairy and beef industries to add economic value to male dairy calves

Key findings

- Male dairy calves can be grown out either with high quality forages or grainfed systems with six Australian markets available.
- Growth rates on forage-based diets between 1.0-1.44 kg/day have been reported in the literature.
- Sensitivity analysis highlighted that diet cost was significantly lower for the high quality forage systems compared to supplement-based systems. As a result, high quality forage systems had a positive gross margin and ROI irrespective of growth rate and carcass price for all markets except as a vealer steer.
- Dairy breeds tend to have a lower level of subcutaneous fat cover but increased marbling, both of which can be manipulated with nutritional management and with crossbreeding with beef breeds.
- The most profitable market option in any feeding system is the MSA steer market due to higher carcase prices.

Benefits to industry

By exploring the opportunities to rear dairy bull calves with high quality forages, this project will support improved profitability of both dairy and beef businesses and an increase in the supply of a high quality and high value beef for the Australian domestic and export market. If all male calves were reared to 280kg liveweight it would translate into an additional 56,000t of beef each year, valued at over $162 million (5000t beef per year in Queensland alone at a value of $20 million).

MLA action

MLA has been working with Queensland DAF and the University of Queensland to develop a program of work around the use of high quality forages to finish non-replacement dairy animals for the beef industry, including both R&D and extension and adoption components. The scoping of this program has included Dairy Australia as well as several other universities and consultants.

Future research

Future R&D will focus on three specific areas: pre-weaning, post-weaning and cross-breeding, all within a high quality forage-based feeding program. The extension and adoption approach will utilise on-farm demonstrations and the development of a peer-to-peer learning package.

More information

Project manager: Nigel Tomkins
Contact email: reports@mla.com.au
Primary researcher: QLD Department of Agriculture and Fisheries