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Improving Returns at the Farm gate

Improving Returns at the Farm gate. PEI Cattle Producers AGM March 31, 2010. Broad spectrum of guidelines to consider for improving returns. Business management Alternative feeds Improving traditional home grown feeds Management tips Government programs. Business Management.

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Improving Returns at the Farm gate

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  1. Improving Returns at the Farm gate PEI Cattle Producers AGM March 31, 2010

  2. Broad spectrum of guidelines to consider for improving returns • Business management • Alternative feeds • Improving traditional home grown feeds • Management tips • Government programs

  3. Business Management • Al Mussel – George Morris Centre • Regardless of farm size, type or province business management expertise is key to profitability. • Larger not always better • 1995-2003 Farm cash receipts ^26% but operating expenses ^40% - not sustainable.

  4. Business Management 101 • Production • Marketing • Financials • People are good in one or two areas but not all three – personality types. • Must control all three areas equally well • If not the business is set up to struggle even in a good economic climate and a high probability to fail in tough times Trinity of Management

  5. Measure it to Manage it • Have to know your margins - details • Article in Cattlemens • Steve Kenyon – Gross Margin Analysis • Don’t need to be an accountant • Need someone to take an interest in the books. • Knowing COP is not sufficient – need details of revenues and expenses to determine where improvements can be made.

  6. Alternative Feeds

  7. Alternative Feeds • Corn based • Home grown or custom grown- ROI • Not cheap crop to grow – fertilizer vs manure • Corn silage – background/finishing • Cob meal/snapplage – specialized equipment • HMC – kernel corn 30% moisture • Processing for storage – rolled • Higher energy availability than dry corn • Funding programs for co-op equipment sharing • Dried corn – cost of drying

  8. HMC

  9. Cob Meal

  10. Alternative Crops • Oilseeds • Soybean, canola, crambe, flax, camelina • Potential to brand beef around these?? • Pressed - high oil 12% vs 2% • Protein supplement - 30 – 40 % CP • High E – from oil rather than starch • Limits inclusion rate – 4 lbs/hd • OD on protein

  11. Improving Traditional Feeds • Silage corn or grass/legume (40% legume) • Timing of cut is critical – weather related • Not as early as dairy – within a couple of weeks. (13 – 16% CP) • Save the best for most demanding periods • Cows close to calving, creep feed calves • Feedlot • Good quality silage 3.5 – 4.0 ADG with less grain

  12. Silage - Storage • Round bales – bale slow to squeeze air out • Plastic 4 -6 layers min – pest issues • Chopped silage – Plastic -seal, cover or open • Seal 7 - 12:1 ROI • Cover 5 - 7:1 ROI • Open DM loss (7- 5%)-Acres, fuel, time etc • Heat damage locks up protein and E – ( ADG 0.75–1.0 lb) – top portion, compost–toxic soup

  13. Management Tips • Crossbreeding system – premium feeder calf • (Bluewater blacks, Bruce Peninsula Calf Club – Ch x) • Improved conception, calf survival, weaning wt, and life of the dam, well framed high muscled feeder. • Hybrid vigour • Require – management skill set, record keeping, pasture management, use of health protocols and marketing plan

  14. Premium calf • Costs - $20 - $40 /hd – (fencing for extra pastures, purchase of F1 heifers, health protocols) • Net return - $120 – 180/calf when marketed as reputation feeders. • Ch x sale – 2009 • 570 lb av @$700/hd st/hf • $125 above Ontario price

  15. Department Support • PEI Herd Health program is based the Ontario calf club program which is self financed from premium prices and a 67 lb increase in wwt. • PEI – offer $40/cow-calf pair • Whole herd program – cows, calves, bulls • $160,000 • Incentive for handling system • $60,000 • Offer incentive for heifer retention • $100,000

  16. Compressed Calving Season • Reduce late born calves • Compress by 30 days - 65 lbs per calf • Require herd nutrition overhaul, herd health program, record keeping to cull cows not performing, breeding soundness of bulls each year • Net return - $30 – 60 /calf

  17. Castrations • Early age – reduce stress vs older age calf • Option to implant on grass • Castrate older calves – lose 2 weeks growth and feedlots discount if not healed completely • Net return on male calves – $15 - $20 • If you wean, vac, dehorn castrate at same time the vaccine will be virtually useless. • If you vaccinate calves in poor nutritional status the vaccine is virtually useless

  18. Others • Creep feeding - $20 - $30 /calf • Superior herd sires - $15 - $18 /calf from a sire considered to be breed average • Superior sire - $35/hd cf to non evaluated sire • Dehorn - $15 - $20 – feedlots discount • Grazing management – extra 15 – 20 lb wwt • Degrees of intensive management • Fencing, sward renovations, fertility - lime

  19. Feedlot • Nutrition program – E/CP/Min • OTM Reduction strategy • Feeder type, time to full feed, energy to finish • Largely about sourcing high margin feeders • Record keeping • ID high margin feeders • $15/hd return for individual vs group management • Grid marketing - $5-10/hd advatage • Return of info to cow-calf - $50/hd return • BIXS information gateway CCA

  20. What Will Not Doing These Cost You (and your customers).......... • Horns – 5 cents • Bulls – 5 to10 cents • Stags – 10 to25 cents • Uniformity + 5 to 20 cents • Type + or – 10 to 50 cents • Vaccination + 5 to 10 cents

  21. Nutrition • Critical time periods – 3rd trimester, after calving, rebreeding etc • Current research – all important • From nutrition focus – check body condition • Developing fetus – day 1 to birth is critical • Deprive dam of protein in late gestation – calf could have slow immune system, heifers have impared repro tract.

  22. Nutrition… cont’d • Deprive dam of E and CP early and calf will be predisposed to a number of problems – genes turned off and locked • Males, lower ADG and carcass wt • Females – lower reproductive efficiency • Set them up to develop age diseases much earlier in life • Mechanism that silences the genes is inherited for at least 2 generations. • Reduce nutrients in early-mid gestation, decrease secondary muscle fibres • Reduce in mid-late gestation decrease muscle fibre size and marbling

  23. BRM Programs • AgriInsurance • Crop Insurance • Livestock Insurance - 2011? • AgriStability – no need to incur extra acct fees • AgriInvest – 1.5% ANS • Double you money almost immediately • No strings to take out

  24. Non- BRM Federal/Provincial • Food safety, biosecurity & traceability • VBP - RFID readers • Environment • ALUS, Stewardship, EFP • Business Development • Self assessment, skills, financials, planning, training • Innovation & research • Project funds • Future Farmer program • Organic industry development program

  25. Summary • Cherry pick which options work on your farm • Gather information from variety of sources • Producer clubs are a great avenue for information gathering. Local or regional – Sean Firth working on regional basis to market feeders through Truro. • Measure it to Manage it

  26. Future Programs • Infrastructure $ for Co-op equipment purchases for sharing. • Infrastructure $ for improved feed storage • Premium payments which could see $ for program type cattle with a direct premium paid to cow-calf producer.

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