A bio-economic modelling comparison of a Friesian Bull-Beef system and a New Generation Beef system with Friesian bulls slaughtered at 10–14 months old

Abstract

Finishing of dairy-origin calves in an accelerated ‘New generation beef’ (NGB) beef finishing system for slaughter up to 14 months of age has potential co-sector benefits. These include production efficiencies and a reduced number of dairy calves slaughtered at a very young age. In the present study, a NGB system and an 18-month Bull-Beef system were first modelled separately, both purchasing three-month-old Friesian bull calves. Then Mixed systems with varying proportions of both NGB and Bull-Beef animals were modelled. Production, feed balance and profitability were compared, using cash operating surplus (COS) as a profit indicator. In the NGB scenario, double the number of animals were finished compared with the Bull-Beef scenario; however, monthly feed demand was less synchronous with predicted pasture supply, requiring more feed transfer via pasture baleage. The COS for the NGB system was $−571/ha, with less income and greater costs than the Bull-Beef system (COS = $2026/ha). Break-even prices for NGB animals were up to 74% above current prices, but break-even prices were less in Mixed systems with a greater proportion of Bull-Beef animals. Without high price premiums, challenges remain for the NGB systems appeal to beef finishers due to their low slaughter weights and sale prices.