Expanding size of feedlots aims to cut costs
Expanding size of feedlots aims to cut costs
ONE Brazilian feedlot is increasing in size – from 25,000 head to 60,000 head – believing that increasing scale will help cut costs.
Robert Hanson, farm manager of the 8500ha (21,000-acre) San Joaquim estate in Sao Paulo state reckons that the £18 a head cost of expansion will be written off over three to four years.
The feedlot industry is expanding in Brazil, with predictions that the number of cattle produced in feedlots will rise from the current 3m a year to 20m within the next 10 years.
At San Joaquim, cattle – all entire, and of the Nelore breed – are bought-in from south west Brazil at 280kg after weaning and at an average cost of 48p/kg. They are grown on the farms 7000ha (17,300 acres) of improved pasture until they are 24-30 months old and weigh about 390kg, then transferred to the feedlot until they finish at about 500kg.
Once finished, cattle are sold deadweight to meat plants in the state, and are fetching about £1/kg liveweight – paid in cash. Mr Hanson believes the cattle business is profitable – it costs about 45p for every kg of liveweight gain in the feedlot. He adds that increasing the units size will cut fixed costs by 3-5%.
One of the farms key advantages is growing almost all its own feed, with maize and soya all being grown under centre pivot irrigation systems. Irrigation means good crop yields are guaranteed, so the feedlot can run at full capacity most years.
He believes feedlots – and the Brazilian beef industry – have a good future. "Most of our meat is sold for domestic consumption, but there will be more available for export. Brazil has huge potential and low costs – particularly for processing – and that is an enormous advantage." *
DAILY FEEDLOT RATION
• 18kg maize silage, 3kg citrus pulp, 200g soyabean meal, 400g cotton cake, 500g maize, 100g lime, 100g mineral mix, 2g Romensin, 120g urea, 50g bicarbonate of soda.
• Fed out as a total mixed ration via mixing trucks with balances. Each load will feed 2500 cattle, and the farm has six wagons which work 11 hours a day.