Farm enterprise Budget Series: June 2010
Enterprise: Japanese Ox - grassfed steers (0-6th)
Enterprise Unit: 100 cows
Pasture: Semi- improved
Change in gross margin ($/cow) for change in price &/or the weight of sale stock (Note: Table assumes that the price and weight of other stock changes in the same proportion as steers. As an example if steer sale price falls to 305c/kg and steer weight to 330 kg, gross margin would fall to $463 per cow. This assumes that price and weight of all other sale stock falls by the same percentage.
An increase of 5% in weaning percentage increases gross margin per cow by $40.44
Assumptions
Japanese Ox - grassfed steers (0-6th). Enterprise unit is 100 cows weighing on average 480 kg Weaning rate: 86%, conception rate 92%.
Selling costs include: MLA levy $5/hd, freight to abattoirs $0.11/kg dressed weight, NLIS tags @ $2.90 for all sale cattle. Cows: age at first calf : 24 months Mortality rate of adult stock: 2% The average feed requirement of a cow + followers is rated at 23.35 DSE’s*. This is an average figure and will vary during the year.
Marketing Information:
Steer portion suited to the top end of the Japanese grassfed market. Note: can be up to 6th and must dress 300kg or more. Heifers suited as prime local trade or plainer types to Korean market. Alternatively could be joined and sold as breeding stock. If individual cull cow weights drop below 200kg dressed then the per kilogram price will be markedly reduced in US manufacturing terms.
Production Information:
This enterprise is feasible with productive cattle kept going all their life so that above average growth rates are achieved. A popular enterprise on well developed and larger properties in the Hunter and North West. Note the age limits to be met. This highlights the importance of turning off cattle earlier than in the past. In many cases, steers will need to be supplementary fed to attain these heavy weights at a young age. Stock will be run on the better grazing areas of the state.
