Farm enterprise Budget Series: June 2010
Enterprise: Specialist local trade
Enterprise Unit: 100 cows
Pasture: Improved pasture
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 345c/kg and steer weight to 140 kg, gross margin would fall to $169 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 $25.35
Assumptions
Enterprise unit is 100 cows weighing on average 500 kg Weaning rate: 90% (higher than other enterprises because replacements purchased PTIC).
Selling costs include: Commission 3.5%, MLA levy $5hd. freight to abattoirs @ 5c/kg dw for stock sold on dressed basis. freight to saleyards @ $7.00/hd + yard dues @ $3.00/hd for lw sales. NLIS tags @ $2.90 for all progeny sold.
Cows: age at first calf : 24 months Mortality rate of adult stock: 2%. The average feed requirement of a cow + followers is rated at 16.68 dse’s*. This is an average figure and will vary during the year. Note that dse rating is lower than some other enterprises because replacement heifers are purchased.
Marketing Information:
The majority are sold as vealers to local trade categories with the balance sold into the feeder market. MSA vealer protocols will influence management. For example vealers must be slaughtered within 24 hours of separation from dams.
Production Information:
Cows for this enterprise will most likely be crossbreds put to a terminal sire or good milking pure bred strains. Female offspring usually sold with males. Early maturity essential.
Good quality replacements are purchased pregnancy tested greater than 5 months in calf to calve in line with the rest of the herd. Early calving (June/July) desirable for this enterprise in northern areas. Selection of efficient dams with good milking ability and lighter liveweights can improve stocking rates and profitability.
Note that herd structure table assumes a high culling rate in early years due to the culling of cows that are tested as empty (100% culling assumed on pregnancy test results), poor performers and off types. However, as replacements are purchased PTIC** numbers required are less than the self replacing enterprises.
** PTIC = Pregnancy tested in calf.
