FEED cost is often cited among producers during the bull selling season. However the attention on feed costs in most discussions centres around the preparation costs of bulls presented for sale. Only rarely do producers talk about the cost of feed for their own production systems, and how this cost impacts their herd and profitability.

During Beef 2024 in Rockhampton in May, Dr David Johnston from the Animal Genetics & Breeding Unit, based in Armidale, highlighted the impact feed costs have on a beef production business.

David Johnston addresses the seminar audience in Rockhampton

As part of his presentation in Vytelle’s “Advancing Sustainable Beef – The Compounding and Permanent Impact of Feed Efficiency and IVF” session, Dr Johnston suggested to the audience that feed cost was the single largest cost producers incurred.

While many producers may automatically assume this refers to the costs associated with supplementary feeding, in fact Dr Johnston was referring to the cost of producing energy and protein for livestock production from pasture.

On top of this cost is the cost of finishing cattle either on pasture or on grain.

Balancing these costs is a complex challenge across all Australian production landscapes. The extreme variability in pasture and forage species supporting cattle production results in extremes of feed quality and quantity throughout a calendar year.

In addition to the variability of the feedbase, livestock requirements for energy are not constant, increasing and decreasing with changes in livestock weight and production status.

This complexity can become overwhelming, and for some, the complexity associated with managing these challenges in production make it easier to push further down the priority list when it comes to selection.

That is not to say producers are not considering this complexity. Often it is acknowledged by focussing on specific traits – generally, mature weights. The thinking is to try to avoid animals becoming too big, eating too much, and becoming less efficient.

Although this approach does address some of the challenges with meeting feed demands, the genetic diversity within breeds means that selection for single traits such as mature cow weight or 600-day weight may not really achieve the goal of producing cows that are more balanced in the feed demand – and therefore less costly to operate over a calendar year, Dr Johnston said.

The increasing level of data collected across breeds shows the variation in animals for traits such as Net Feed Intake.

In basic terms, Net Fed Intake (NFI) is calculated by measuring the daily feed intake of dry matter and dividing that by a unit of production. In most cases that unit of production is a kilogram of liveweight.

Does NFI have relevance?

It is tempting for many producers to not consider NFI as a trait that has particularly relevance to a breeding herd. Often it is seen as a trait that has relevance only to those producers aiming to sell cattle into feedlot finishing programs. However, taking this view overlooks the impact this trait can also have for breeding programs.

Cattle that are genetically more feed efficient can significantly reduce the overall feed costs carried by a production business.

This cost reduction is not necessarily seen as a line item. Most producers will still produce the same amount of feed and experience the same degree of variation over the year.

However, a herd that is more efficient in feed use may achieve better levels of production in critical areas such as conception and calving rates; survival to weaning, and improved weaning weights.

These factors contribute directly to greater production measured as kilograms of beef produced per cow (known as the production ratio).  Improving kilograms of beef produced is where the cost of feed is offset for any production program.

Breed indexes

However, at the point of selection, factoring in the cost of feed and the overall efficiency of a herd can be as complex as managing forage variability. Mature cow weights, NFI and other traits need to be balanced against other genetic factors.

This is the point where Breed Indexes become a valuable tool.

Breed Indexes are calculated with weightings across the measured traits and balanced to reflect the feed supply of typical production environments and markets.

Many producers often overlook the major contribution production environment has in creating Breed Indexes. As a result, they may not see or consider animals that are genetically better suited to their system and potentially offer more improvement for a herd to offset the cost of feed.

In making selection decisions, particularly where feed is a major limitation and therefore a cost through lost production, lower fertility or lower market compliance, finding a balance across genetic traits is essential to create a change.

Using the most appropriate index as a starting point to build a selection list for closer consideration and physical inspection will result in better consideration and mitigation of feed costs for breeding programs.

• See tonight’s companion genetics article:  Selection for Growth – What does it mean for feed efficiency?

Alastair Rayner is the General Manager of Extension & Operations with Cibo Labs and Principal of RaynerAg.  Alastair has over 28 years’ experience advising beef producers & graziers across Australia.   He can be contacted here or through his website www.raynerag.com.au