Simulating the productivity and profitability of a herd of beef-dairy crossbred breeding cows on New Zealand hill country with fixed feed supply

Abstract

Beef-dairy crossbred cows (such as Angus-Friesian) have lighter mature cow weights while weaning heavier calves compared with cows in a typical self-replacing New Zealand Angus breed herd. The objective of this study was to quantify the potential profitability of farming an Angus-Friesian cow herd through modelling the potential changes in cattle numbers, feed demand, production, and beef enterprise economics. The Angus-Friesian cow herd was simulated as purchasing all replacement heifers and was modelled with different sire breeds (Angus or terminal such as Charolais or Simmental) and offspring sale policies (sold at weaning at six months of age or at 27 months of age). Total annual cattle feed demand was maintained at the same level for all modelled scenarios. Angus-Friesian herds had 8% to 79% higher beef enterprise cash operating surplus (COS) compared with the self-replacing Angus herd (COS = NZD 255/ha). For the Angus-Friesian herds, selling all offspring prime (direct to slaughter) at 27 months of age resulted in 20% to 59% higher COS than selling all offspring store (sold at weaning) at weaning at six months old. Utilising terminal breed sires with the Angus-Friesian herd resulted in 10% to 12% higher COS compared with using Angus sires when selling all offspring store at weaning, due to the heavier sale weights and resultant higher per head sale values. However, when selling all offspring prime at 27 months of age the utilisation of Angus sires resulted in 10% to 11% higher COS than using terminal sires, as the lighter weights and thus total feed demand was lower for offspring born to Angus sires allowing for a greater breeding cow numbers (and therefore numbers of offspring sold). Scenarios in which offspring were retained on-farm until 27 months of age increased total feed demand of cattle destined for sale, necessitating reductions in breeding cow numbers to as low as 60% of the base system level, which may inhibit farmers’ ability to manage pasture quality. Farmers considering a change to an Angus-Friesian crossbred herd of breeding cows can include the potential herd numbers, feed demand, production, and economic changes predicted in this analysis in their decision making, as well as the practicalities of the explored strategies for designing their farm system.