Can male dairy calves for beef be made to pay?
In 2011 it was estimated 106,000 of the 544,000 dairy-bred bull calves born in the UK were shot at birth, with a further 110,000 killed as bobbies.
It is recognised that the most appropriate beef production system for the Holstein is the cereal bull beef system, however the recent dramatic rise in cereal prices is likely to see an increase in the number of calves being shot. So what options are available to make a profit from black and white bulls to prevent this happening?
Keep bulls on ad lib cereals to at least seven months old
Many producers are thinking about replacing cereals with forages. This is more appropriate for older bulls. Why feed a young bull from three to seven months old on forage when it is can record average daily liveweight gains (DLWG) during this period of 1.55kg (often hitting 1.8-2.0kg/day by six to seven months of age) with an food conversion ratio (FCR) of just 3.5:1 on ad lib cereals? Consider forages when FCRs and DLWG are deteriorating with older bulls.
High-energy forages
At Harper Adams we finish 100 dairy bulls a year and have evaluated replacing ad lib cereals with good-quality (11.0+ME, 31% starch) maize silage for seven month old bulls. We also fed 2.5kg/head/day of a 21% crude protein (CP) mineralised barley/rape mix.
Compared with our cereal-fed bulls, which typically finish at 13.5 months old with a 285kg carcass weight, the maize-fed bulls recorded 295kg carcasses at 15.3 months old.
We basically replaced 1.9t of a 14% CP cereal mix with 700kg of the 21% CP mix and 1.7t DM of silage and got an extra 10kg carcass weight. Maize silage is not the only forage to feed and others to consider are obviously grass silage, whole-crop, lucerne and red clover.
The latter two forages have the advantage of supplying valuable home-grown protein, but can sometimes be difficult to ensile. The general advice is grow the crop which give you the highest metabolisable energy (ME) and DM yield a hectare for your farm.
Also take into consideration that some abattoirs do not want bulls more than 16 months old, which can occur with forage-based rations. There may also be housing implications by finishing the bulls almost two months later. It is worth repeating that any silage must be of top quality.
Medium-quality forages
This is a total non-starter. Yes it will reduce daily feed costs, but it will reduce DLWGs, which will obviously delay slaughter, but will increase overall feed and fixed costs.
Feeding medium-quality silage would only be applicable to cattle that are to be turned out in the spring and finished extensively – which has implications for cash flow and needs to be based on cheap grazing.
Calf quality and selection for slaughter
Rearing ‘good type’ bull calves that have had adequate good-quality colostrum and will thrive and achieve high DLWGs must be a priority. Don’t use coat colour as the basis for calf type, since our experiences at Harper show that the ‘all white’ calf deemed to be pure Holstein will usually perform very well.
A significant number of dairy producers are also moving away from extreme Holstein breeding to more functional easy care-type cows with Friesian type bloodlines, which is positive news for beef producers in the long term.
At Harper we weigh the bulls every month and as they reach slaughter condition we let the ‘high fliers’ maximise their carcass weights. We cut our losses with poorer performing P+ grade bulls and kill them at lighter weights. It doesn’t make economic sense to keep heavy weight bulls when they are eating 10-12kg of feed a day and growing at only 1kg a day.
Alternative feeds
There are a number of alternative co-product feeds on the market that can work well. However, most have gone up in price in sympathy with cereals. We have finished bulls on a blend of Traffordgold, bread and beet pulp, and when compared with cereals resulted in higher slaughter live weights (572kg compared with 550kg).
To consider co-product feeds, you ideally want to be close to the source, get the rations independently formulated, get a guarantee of supply and minimise storage losses. There is, however, a finite supply of alternative feeds and it may require a change in your feeding system. Spending £10k-20k on a feeder wagon and feeding a TMR are not always the answer.
‘Stick or twist’?
Beef production, like a lot of other aspects of agriculture, can be a roller coaster ride. Increasing market volatility is often quoted, with supply and demand see-sawing to cause price fluctuations. Invariably, good times follow bad and hopefully there is enough fat in the system to cope with lean times and to stick with the system despite high feed prices.
The global signals are for an increase in world beef prices – which is positive news. Earlier this month (12 November) we sold a batch of Holstein bulls averaging £3.25/kg deadweight – the highest we have ever received. It is often all too easy to advise major changes to the system, but in many cases it is often best to stick with what you know and do best, and make sure your cattle achieve and hopefully exceed target performance.
Achieving target performance
The target performance for a Holstein bull is carcass of 285kg at 14-months-old. This was achieved with our last batch of bulls at 13.6 months. For interest, our Continentals recorded a carcass weight of 346kg at exactly 14 months. A summary of the management of the Harper Adams beef unit is as follows:
- Calves fed colostrum within six hours of birth and for the first four days. Weaning takes place at six to eight weeks, once the calf is eating approximately 1kg a day of concentrates.
- High-energy 12.5+ME (MJ/kg DM) 14% CP barley-based rations or beef nuts with high levels of starch (35%) are fed ad-lib. The Harper Adams ration typically comprises 67.5% rolled barley, 15% rape/soya, 10% soya hulls, 5% molasses, 2.5% high calcium beef mineral. Recently completed trials with Holstein bulls have shown that the protein content of the ration can be reduced to 12% once the bulls are over 275kg, thus reducing ration costs by about £15/t.
- The barley is lightly rolled and straw is fed from racks to minimise problems with bloat and acidosis. The feed hoppers are never allowed to become empty or contain stale feed.
- If the farm can successfully grow grain maize (which is crimped) then this should be seriously considered since it is ‘rocket fuel for bulls’. Our best-ever performance with bulls has been on this feed, increasing DLWG from 1.34kg to 1.51kg with significant improvements in FCR.
- The bulls are regularly weighed and selected for slaughter at fat class 3. High-performing bulls are allowed to finish at heavy weights.
Financial sensitivity at Harper Adams
At Harper Adams our calf-rearing costs to take a baby calf up to 115kg at three months old are £102. Our transport and abattoir costs are £26 and bedding costs are zero since it is on a ‘straw for muck arrangement’. This allows us to accurately predict if we are to make profit with black and white bulls.
Based on a calf price of £50 and with a bull eating 2.5t of feed the predicted gross margin based on various feed and finished beef prices can be calculated for a Holstein producing a 285kg -O grade carcass at 14-months-old.
A margin of £10/head/month is needed to at least cover fixed costs, so any of the above feed cost:beef price combinations means that a loss is being made with a gross margin under £140.
If we were to buy in weaned three- to four-month-old calves instead of babies (which are currently costing £260), the gross margin must exceed £300 to make a profit, unless the fixed costs can be really trimmed.
| Cereal-fed Holstein bulls at Harper Adams – predicted gross margins (£/bull) | |||
|---|---|---|---|
Beef price (-O grade £/kg carcass wt) | |||
| Feed cost (£/t) | 3.00 | 3.25 | 3.50 |
| £175 | 240 | 311 | 382 |
| £200 | 177 | 248 | 320 |
| £225 | 115 | 186 | 257 |
| £250 | 52 | 123 | 195 |
Alternative systems
A few producers are looking at rose beef and rose veal production and some niche marketing outlets are opening for the latter. Buitelaars is the major player with the marketing of rose beef and is currently slaughtering 350-400 a week at their abattoir in Lincolnshire. The hind quarters are exported to Holland, with the forequarters sold to McDonald’s.
We currently have a batch of Holstein bulls on a rose beef trial for Asda and half will be slaughtered at under 12 months to exactly determine feed intakes, carcass weights and grades and potential profit with rose beef compared with conventional cereal beef.