Comparative economics of Holstein/Gir F1 dairy female production and conventional beef cattle suckler herds - A simulation study

• Published in: Agricultural systems Vol. 88; no. 2-3; pp. 111 - 124
• Main Authors: Guimaraes, P.H.S, Madalena, F.E, Cezar, I.M
• Format: Journal Article
• Language: English
• Published: Elsevier 01.06.2006
• Series: Agricultural Systems
• Subjects: Angus; animal breeding; animal performance; beef cattle; F1 Angus x Nelore; F1 Holstein x Gir; Gir (cattle breed); Holstein; Nellore
• ISSN: 0308-521X; 1873-2267
• DOI: 10.1016/j.agsy.2005.02.004

Three cow-calf production systems were compared using simulation: N (straightbred Nelore), AN (Nelore cows producing Angus by Nelore calves) and HG (Gir cows producing Holstein by Gir calves). All three systems produced their own straightbred replacement females. Male calves were sold at weaning and female calves in excess of those required to keep the herd size constant were sold at one year of age. In the base situation, F1 HG females were priced at twice as much as the price per kg of the beef male calves, according to present market values. Typical 1000 ha beef cattle farms were simulated for each system, based on Brachiaria brizantha pastures managed according to recommended practices. Herd dynamics were controlled by reproduction and survival. Literature figures on monthly pasture nutrient production, live weights and milk yield were used to estimate nutrient requirements to match stocking rate to nutrient availability in each system. For calving rate set to 0.8 in all three systems, the total numbers of cows for the N, AN and HG systems were, respectively, 803, 795 and 885 and the total live weight sold annually was 129,070, 133,120 and 127,680 kg. The annual economic return on investment was 5.21%, 5.81% and 10.84%, respectively, for the N, AN and HG systems. Reducing the relative price of the HG heifers diminished the economic superiority of this system over N and AN. The difference was zero when the price of HG heifers was reduced to approximately 1.2 times the beef calf price. This also happened when the calving rate of the Gir cows was set to 0.6 keeping N cows at 0.8 or higher.