Cull cows being shortfed in a Darling Downs feedlot

WITH lighter cows under considerable price pressure in parts of eastern and southern Australia over the past six months, there’s evidence that some cows have been directed into grain-assist programs, either in commercial feedlots or using self-feeders in the paddock.

The intention is not to chase a ‘grainfed’ AusMeat cipher, but simply feed for short periods 30-60 days to add weight, finish, and in some cases, allow the processor to harvest a few ‘budget’ category MSA cuts from a better quality carcase.

It’s a trend that is seen reasonably frequently during times of drought when prices on light-conditioned cows drift away from heavier descriptions. Here’s an earlier Beef Central article from the 2019 drought.

While most of the current grain-assist cows are evidently being sold direct to processors, some have come via saleyards. For example there was a ‘notable presence’ (market reporter’s description) of grain-assisted heavy cows at Wodonga sale this week, averaging 340c/kg liveweight (639c/kg estimated carcase weight) and selling as high as 351c/kg live.

In the direct-to-processor channel, grid prices tend to drop off sharply as cow slaughter weights decline. For example, Bindaree Food Group’s Monbeef plant at Cooma in southern NSW this week has direct-consignment heavy cow offers +300kg (with acceptable fat cover up to 18mm) at 600c/kg. Below that, there is a 10c/kg decline for cows 275-300kg, but cows lighter than 275kg drop another 20c/kg, and those less than 275kg a further 20c.

That values a 300kg cow carcase at $1800, versus a 274kg carcase at $1507.

Chris Howie

Regular Beef Central markets columnist Chris Howie thinks there has been a lot more cow feeding going on this year “than what we’re aware of.”

In the southern part of the country, it was about drought and big price differences between lighter and heavier cows. In northern Queensland, it was more a normal seasonal cycle heading into the third quarter, when finished cattle become harder to find.

Mr Howie said he had heard of one program where 5000-6000 northern cows were going through a grain program.

“In some cases it is only 35-40 days on feed, just enough to do a rump and loin freshen-up,” he said. “It also improves the boning room yield a little, as well as adding extra weight.”

Mr Howie said the industry often ‘undervalued’ the large domestic food service pub trade for a budget rump or scotch fillet, usually harvested from better-finished MSA cows.

“Pulling just a few MSA cuts out of the cow carcase adds further to the value,” he said, “even if the rest goes into trimmings.”

Mr Howie said most of those ‘improver’ cows in the south had been making 220-270c/kg liveweight, but the lower end had lifted lately.

“Get them to grade, with better weight and finish – say shifting a score 2 cow that’s not quite there, from 270kg to 320kg carcase weight, and they might shift closer to 300c,” he said. “That’s especially for the crossbred type cow with a bit of frame and scale that you can hang some meat on.”

Mr Howie said he had driven from Adelaide to Bendigo earlier this week, and there wouldn’t have been a “wheelbarrow of feed” the whole way. “There’s still a lot of light cows out there – but one problem is that ration cost is heading towards $500/t in the south, partly because they can’t find hay for the roughage component.”

Processors like Bindaree, Throsby, Australian Meat Group and Oakdale have handled shortfed cows in the past.

Window may have closed

A NSW processor contact said recent rises in light cow values may mean the window has now closed on any opportunity to grain-assist light cows.

“Some of those light cows that were making 230-240c/kg only six or eight weeks ago are now 280c/kg, while the best of the heavy slaughter cows are still only making 300-320c,” he said.

“Right now at today’s prices, it wouldn’t be adding up for us to grainfed cows like this,” he said. “To make it work, you really have to be able to buy them for a dollar a kilo (or the best part of) cheaper than you sell them, and in our area, you can’t do that at the moment,” he said.

Strong global demand for cow beef

Much of the current momentum in grain-assisting light cows is built on the strong global demand for manufacturing meat, particularly into the United States and China.

One NSW lotfeeder said said the prospect to feed a few cows might have been been financially tempting over the past three months or so, but commitments to other program business with pen space made it hard to engage in.

One of the attractions in short-feeding light cows was high average daily gain, with some bigger framed types capable of 2kg to 2.4kg/day for short periods. Smaller framed types did not feed quit as well, one NSW lotfeeder said.

“Those light cows eat their heads off – they can consume 20kg of mixed ration a day – but they also fatten very quickly,” he said.

“If supply of proper fat cattle is going to be very tight over the next three months, which looks likely, it is one solution in underpinning manufacturing type kills through the back half of winter,” he said.

“For cows going on short programs during June, there’s still going to be a shortage of good processor cattle in 50-60 days time. If they put on 2kg/day, fed even for 40-50 days they can add 80kg liveweight.”

One of the risks in lotfeeding cows was the possibility of unwanted calves, but in saying that, if the processor involved was geared to handle foetal blood, that could be a bonus.

“But the issue from an operational perspective around a feedlot housing cows is live calves. Nobody wants to deal with that in the yard.”