Tectonic shift or high tide for the beef industry?

Record high beef prices, increasing demand for quality protein, decreased herd size…… are we seeing a tectonic shift for the beef industry, or is this a cyclical high tide that while welcome, is only temporary?
This is best addressed by looking at the current prices relative to longer term prices in real terms (with inflation removed), which is shown in the below graph. Two major points can be seen here;

  • there is an obvious cycle in the prices, and we are currently at a high point in the cycle,
  • the current prices are not significantly higher than they were in 2001,

The Efficiency of Beef Production

·         Growing cattle convert grass into beef more efficiently than breeding cattle

·         As the proportion of growing cattle in the herd increases the total beef produced increases, up to a point (which is determined by reproductive rate and annual weight gains)

·         Breeding herds should focus on maximising reproductive rate and then growing the progeny out as heavy as country and available markets permit, while lowering mortality

·         The carrying capacity of land under management is one of the main limiting factors of a beef business, the number of AE run in the long term should be set at the long term carrying capacity,

·         The herd profile should be determined by reproductive rate and optimum turnoff weight, growing cattle with good annual weight gains can profitably displace breeders.

Implementing Business EDGE Material

At a recent Business EDGE workshop, one of the participants, keen to go home and apply the material, asked out loud ‘where do I start?’. To answer this question we’ve developed the below as a brief guide to help you revisit the concepts from the Business EDGE and to maximise your return from attending.

Leasing Additional Country

Leasing additional country can be an effective way to increase scale of a beef business, however how effective it is will be largely influenced by the cost of the lease, so careful planning is needed. Full article

Queensland Beef Industry Debt

Over the past decade, the Queensland beef industry has moved to a position where it is not making sufficient profits to cover interest costs.

Not only has total and average debt increased, but the number of businesses with debt has also increased. Wide variation in business performance exists, with some businesses still profitable in the current environment. Full article

Drought After Action Review

Make notes of what has worked, or not worked, so far in this drought. Keep these notes for an After Action Review (AAR) at the end of this drought. Your AAR sets the scene for how the lessons learnt in this drought can improve the management of the next drought. Full article

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Contact Us

  • PO Box 41
    Withcott QLD 4352
  • 0401 118 191