Where to from Brahmans in the northern Australian herd?: Maintaining the economic benefit of earlier infusions of 'Bos indicus'

Abstract

Economic values derived from a terminal crossbreeding system based on Brahman cows and a tropically adapted composite herd targeted to meet specifications of the grass-finished Japanese market were compared to a straightbred Brahman herd. The model represented a typical individual central Queensland integrated breeding/finishing enterprise or a northern Australian vertically integrated enterprise with separate breeding and finishing properties. Due mainly to a reduced age of turnoff of Crossbred and Composite sale animals and an improved weaning rate in the Composite herd, Crossbred and Composite herds returned a gross margin of $7 and $24 per Adult Equivalent (AE) respectively above that of the Brahman herd. The benefits of changing 25% of the existing 85% of Brahmans in the northern Australian herd to either Crossbreds or Composites over a 10-year period were also examined, using either no premium or a 5c per kg premium for carcass quality in Crossbred and Composite sale animals. With no premium, annual benefits were $16m and $61m for Crossbreds and Composites in 2013. The cumulative Present Value (PV) of this shift over the 10-year period was $88m and $342m respectively, discounted at 7%. When a 5c per kg premium for carcass quality was included, differences in annual benefits rose to $30m and $75m and cumulative PVs to $168m and $421m for Crossbreds and Composites respectively.