the Smart State

CQ BEEF

Better Economic and Environmental Futures

Cattle drinking at the Mountain Hut dam futureb eef Wet season spelling the secret to healthy pastures CQ Issue 3 Issue CQ razier Jeff Edgar has been restocking. However it’s critical to give amazed by the positive impact grasses time to fully recover from the Gfencing to land type and dry conditions,’ Mr Murray said. wet season spelling has had on the ‘Grazing grass early in the wet season condition of his pasture. when it is starting to grow from its In 2006 Mr Edgar received help from reserves will weaken it and can lead the Fitzroy Basin Association Inc to the loss of productive grass species (FBA) and Fitzroy River and Coastal from the pasture system. Catchments Inc. (FRCC) to fence the ‘Wet season spelling is the secret to hills from the lower creek flats on his allowing drought affected pastures to Morinish property Mountain Hut. recover for long term beef production. Following soaking rains in the last wet ‘Spelling or resting pastures for the first season, Mr Edgar used the new fence to 6 to 8 weeks of active growth allows move his herd into the hills to give the productive pasture plants to replenish pasture along the creek flats a rest for reserves, set seed and allow seedling three months’ of the growing season. recruitment. ‘The difference along the creek flats is ‘The results speak for themselves; wet amazing after only one wet season’s season spelling is the cheapest and spelling. We’ve already seen a big most effective pasture renovation improvement in ground cover and option available.’ general pasture condition.’ Mr Edgar Ground cover monitoring being said. conducted by FRCC had recorded an FRCC Field Officer Darcy Murray said improvement in pasture cover of up Mr Edgar’s story was a timely example to 27% in Mr Edgar’s 9-Mile Creek of the benefits of wet season spelling of paddock. pastures. ‘If we can do this (spelling) for a few ‘Following the recent soaking rain years in a row, that’ll really cover up across CQ graziers will be tempted the bare patches. We are aiming at 75% to take advantage of fresh feed by cover over the whole area which will

cont. page 2 Welcome to the third edition of the CQ BEEF newsletter. the CQ BEEF project and Mark Best has an example of this We are about to have a changing of the guard with our work in an article on an analysis of feeder steer versus Jap Ox economists. Mark Best will soon move to Toowoomba where production. The recent DPI&F Spotlight on Beef forum for the Rebecca Gowen has come from to join the team. We would like Agribusiness sector highlighted some serious productivity and to thank Mark for his hard work in the project and wish him Lilly profitability issues for industry. Rebecca Gowen provides an overview of these issues.

Editorial and Stephen all the best with their move. Rebecca has hit the ground running and we would like to Brendan Hamilton the QRAA Client liaison Officer for Central welcome her to the team. Queensland based in has provided an update on QRAA services for the region. We would also like to welcome Byrony Daniels to the role of Beef Industry Development Officer in Emerald. Byrony has been A profile of the Moura group members is included in this employed under the DPI&F FutureBeef Initiative which has been edition and this month’s feature plant is black speargrass. implemented to improve beef extension services in Queensland On behalf of the project team, FBA and DPI&F, I would like to with the Central Highlands identified as a key region for extra thank Wayne Moxham-Price, Pindari and Howard Smith, resources. Mt Panorama Rolleston for agreeing to be members of the This edition has articles highlighting the range of activities project steering committee. being undertaken by FBA and DPI&F to improve industry An application was submitted to the National Landcare program profitability and environmental outcomes. Articles on FBA for funding to expand the project in . This work on wet season spelling and water quality monitoring has been just approved by the Federal Assessment Panel. demonstrate this dual approach. I hope you enjoy the articles. Analysing production and turnoff options is a key activity in Mick Sullivan Project Leader, CQ BEEF

make a huge difference production wise,’ Mr Edgar said. ‘During the recent rain it was great to see the improved grass coverage helping to retain topsoil and nutrients and the dams filling so well. You’ve got to keep that water and soil on the land and not washing down into the creeks,’ he said. Download Jeff Edgar’s case study from www.fba.org.au

Jeff Edgar (left) chats to FRCC field officer Darcy Murray about pasture condition

FBA Water Quality Monitoring FBA also invests in a number of research and on-ground activities designed to improve Program improves understand- the ability to set accurate local water quality ing of local water quality targets, and to help gauge the success of changes in land management. ecent flooding in the Fitzroy Basin and The Priority Neighbourhood Catchments the resulting sediment and nutrient (PNC) Water Quality Monitoring Program Rrun-off into our waterways has again is helping provide much needed data to highlighted the importance of sustainable land support this process. The program aids in management practices that improve ground setting water quality targets, collection of cover and reduce erosion. baseline water quality data and improved understanding of water quality issues among Reducing the impact of agricultural land stakeholders. use on the health of our waterways is vital and FBA works closely with graziers across The success of FBA’s PNC Water Quality the region to adopt best practice land Monitoring Program can be attributed to the management techniques to achieve this goal. involvement of landholders across the basin

2 View current Event Reports Visit www.fba.org.au and then click on Subscribe ‘Programs’ in the left-hand navigation to FBA Event panel, and then ‘Healthy Waterways, Rivers Reports and Wetlands. Want these latest Reports are available for the areas reports sent to you of Alligator Creek, Calliope, Capella, hot off the press? Canarvon, Clarke Creek, Consuelo, Contact Nick Kirby, Kemmis Creek, Minerva, Orion, Springton on (07) 4982 2956 or Duckworth, Steven Creek, Upper Fitzroy [email protected] and Wolfgang. to get on the FBA Event Report mailout list (please specify post or email). Landholder testing water who take an active role in the monitoring process. Dedicated individuals in strategic locations within priority catchment areas collect up to six samples from each rainfall event that causes flows in creeks and rivers. The objective of this monitoring program focuses on sediment, salinity and nutrient (nitrogen and phosphorus) parameters. More than 20 reports have been produced over the last two years for flood events that have been monitored, and more will be produced in 2008 as a result of recent heavy rainfall. The reports are made available to FBA staff install water landholders, scientists and the general public quality monitoring through the FBA website. equipment

CQ BEEF Mackenzie River group scenario analysis – Feeder steer versus Japanese Ox production

2 1Bullocks is a gross margins/ Introduction annualised per adult equivalent (AE) returns calculator contained basis after interest. Interest cost is based within the Breedcow and In this analysis gross margin results for Dynama package of herd two steer growing options using purchased on the capital value of the cattle. budgeting software. steers are compared. These are: • Scenario options were tested under 2Adult equivalent ratings are calculated for different class and 1. Feeder steer production – Growing out a range of turn off weights, growth weights of animals to enable rates and sale prices in order to test the them to be compared across a 250 kg steers to 450 kg feeder steers; and time period. sensitivity of the growing options to 2. Jap Ox production – Growing out 250 kg these factors. steers to 635 kg Japanese Ox (Jap Ox). Purchased steer data Comparison methodology Input data for the 250 kg purchased steers • Determine cattle purchase and selling used in both scenarios are shown in Table 1. prices and costs, variable production costs and production data for both Purchase weight 250 kg Table 1. Purchased growing out options. Purchase price (net) $2.08/kg steer data • Use the Bullocks1 programme to Steer purchase price $520/hd Delivery freight $8/hd calculate gross margins. Tickicide $4.70/hd • Gross margins are calculated on an Induction HGP $6.70/hd

3 Table . Production 2 Production scenario Feeder steer Jap Ox With a higher weight gain across the and cost data for feeder steer and Target turnoff liveweight (kg) 450 635 Jap Ox production cycle and a sale price Jap Ox production Annual mortality (%) 1 1 above $3.30/kg HSCW, the gross margin scenarios Average daily liveweight gain (kg/hd/day) 0.67 0.50 Days to reach turnoff weight 300 770 is comparable to the feeder steer option. Post induction tick treatments ($/hd) NA 5.35 However, it should also be acknowledged Post induction HGP treatment ($/hd) NA 4.70 that such weight gains are difficult to Liveweight sale price ($/kg) 1.80 NA Dressing percentage NA 52 achieve across the entire production cycle. Carcase weight (HSCW*) (kg) NA 330 Gross margins for feeder steer production Carcase sale price ($/kg) NA 2.90 Gross value ($/hd) 810 957 under a range of feeder steer selling prices Sales freight ($/hd) 11 16 are shown in Table 5. Sales commission (%) 3 NA Table 5. Feeder steer production sale price sensitivity matrix *Hot standard MLA levy ($/hd) 5 5 carcase weight Net price ($/hd) 770 936 Selling price ($/kg GM ($/AE) liveweight) Scenario production data 1.50 57 1.60 124 The production data for the two finishing 1.70 192 options examined are shown in Table 2. 1.80 259 1.90 327 For both scenarios an interest rate of 10% 2.00 395 was applied to the herd capital. 2.10 462 Initial result At a sale price of $1.58/kg, feeder steer Initial results indicate a superior gross gross margin falls to $111/AE, comparable margin for the feeder steer production option to the initial Jap Ox result. However, of $259/AE versus $108/AE for Jap Ox. this represents a fall in price of around Reasons for this include the length of time 12% from the selling price used in the animals spend on forage and the higher analysis, demonstrating that even with a interest costs associated with carrying higher considerable reduction in feeder steer sale value animals for longer time periods. prices the option modelled is superior to Scenario sensitivity analysis Jap Ox production. Because of the variability that is Cow finishing scenario experienced in growth rates and sale prices A cow finishing scenario based on locally it is important to test the sensitivity of the sourced cows was also investigated. production system to changes in growth These animals were bought in at 450 kg rate, cattle purchase and sale prices. liveweight with a purchase price of $1/kg. Table 3 shows the Jap Ox production system The cows were assumed to gain 0.65 kg gross margins for a range of sale prices. liveweight per day and sold after gaining 100 kilograms. A dressing percentage of Table 3. Jap Ox production sale price Selling price ($/kg HSCW) GM ($/AE) 49% was used. Results for these analyses sensitivity matrix 2.70 80 are shown in Table 6. 2.90 108 3.10 137 Table 6. Cow finishing sale price sensitivity matrix 3.30 165 Selling price ($/kg HSCW) GM ($/AE) 3.45 187 2.30 216 3.50 194 2.40 272 2.50 328 If the Jap Ox system steers achieved the same lifetime growth rate as the feeder These results compare favourably with steers (0.67 kg/hd/day) the gross margins the feeder steer option. However, this is are considerably improved (Table 4). very much a production option driven by opportunity purchasing as its viability is Table 4. Jap Ox Selling price ($/kg HSCW) GM ($/AE) very dependant on purchase price. For production sale price 2.70 132 sensitivities for a example, if purchase price was $1.10/kg, liveweight gain of 2.90 171 gross margin falls to $173/AE and at 0.67 kg/hd/day 3.10 210 3.30 250 $1.20, gross margin is $74. Such sensitivity 3.45 279 emphasises the need to fully analyse such 3.50 289 opportunities.

4 Discussion scenarios, under the assumed price and Factors such as labour usage between classes production combinations, a superior of cattle, the risk exposure incurred in annualised gross margin is achieved through growing animals out beyond the year long feeder steer production. production cycle of backgrounding, as well as the cash flow impacts of switching from Future analysis backgrounding to longer Jap Ox production Ongoing analytical support is offered as have not been considered in the above a part of the CQ BEEF project. There are analysis. Cash flow budgeting is commonly opportunities to apply similar methodology used to explore such issues. in order to assess the potential profitability of Conclusion production opportunities throughout project In looking across the potential production teams.

Dr David Orr Black speargrass in Queensland Principal Scientist Rockhampton

Background seeding the characteristic ‘bunches’ of seeds Black speargrass (Heteropogon contortus) is become prominent. At this stage, the seeds a widespread, native perennial grass which are dormant and they eventually fall to the is distributed throughout much of eastern ground. Dormancy is usually overcome by the Queensland particularly in areas receiving increasing soil temperatures with increasing between 600 mm and 1,000 mm annual daytime temperatures during spring. rainfall. Prior to European settlement, much of Plant turnover the now black speargrass area was dominated by kangaroo grass (Themeda triandra) Most black speargrass tussocks live for which declined substantially because it was around five years although one recent study intolerant of grazing and was replaced by has measured some tussocks as having black speargrass. More recently, however, survived for 15 years. This five year average there is evidence that black speargrass is now life span means that regular seedling in decline throughout much of Queensland, recruitment is necessary to maintain plant because stocking rates have increased, in many density. Seedlings usually appear after the cases, to a level that is too high for black first spring / early summer storms and the speargrass to remain dominant. In northern number of seedlings usually depends on how Queensland, extensive areas that were once much seed is set in the previous autumn. dominated by black speargrass are now Seedling recruitment is substantially boosted dominated by inferior grasses such as Indian by burning within a few days of receiving the couch (Bothriochloa pertusa). first rainfall event of 20 mm or so. Soils Reaction to grazing Black speargrass grows on a wide variety of soil Black speargrass responds well to moderate types. It has its best growth on coarse textured grazing pressure. However, where grazing soils and does not grow well on clay soils. pressure is consistently too high over a number of years the rate of death of existing Growth tussocks exceeds the recruitment of seedling Black speargrass is a summer growing plants so that the black speargrass population perennial grass with growth usually starting is reduced. with storms in spring and continues Resting over the summer growing season can throughout summer until early April, be very beneficial to black speargrass as the depending on rainfall. Growth occurs from tussocks have the opportunity to rejuvenate. small tiller buds located at the base of existing Resting over autumn will maximise seed tussocks and although most of these new tillers set. Rehabilitating pastures with low black (or stems) emerge in spring some new tillers do speargrass density can be achieved with emerge later in the summer. careful management through resting over During the summer, these tillers expand in autumn to maximise seed production, growth becoming taller until about March burning in spring following the first 20 mm when some tillers flower and produce seed. storm to maximise seedling recruitment and By late April when the tussocks have finished then resting again over the summer.

5 Enterprise Tremere Pastoral is a stud/commercial breeding operation with progeny normally sold direct direct sold normally progeny with operation breeding a stud/commercial is Pastoral Tremere feedlot. and on farm backgrounding of chain a production through or abattoir buyer bull to and bulls to some going with the feedlot to directed normally are production and hay Grain bulls. the sale for grown is Oats weaners. & KA SM years. in drier grazed is stubble crop The grain farm. off sold are and hay grain Excess their employment. part of as on the properties cattle graze Hudson Recently EU accredited. Breeding fattening enterprise consisting of Droughtmaster X. Droughtmaster of consisting enterprise fattening Breeding EU accredited. Recently turnoff. reliable more provide to used system Silage cropping. grain for used 350 ha Approximately to bulls and Charbray Limousin using now 400 breeders) (approx herd a Brahman Originally meatworks. to cows cull selling and feedlots, fatteners grass for weaners produce to direct Selling enterprise. and fattening breeding greyman EU accredited grazing. ha 1,727 feedlots. to direct selling operation non EU backgrounding Also works. market as grain and or milled silage of feeding supplementary incorporate Both enterprises breeders. wet Excepting dictate. and economics forage chickpea, sorghum, wheat, predominantly enterprise dryland farming 800 ha Provisions and sunflower. sesame corn, include Other crops mungbean. (silage), sorghum cultivation. for suitable not or land land, productive on less leucaena for made EU Accredited breeding and fattening enterprise. Breeding towards pure Droughtmaster herd herd Droughtmaster pure towards Breeding enterprise. and fattening breeding EU Accredited yearlings. as joined heifers calf first to sire terminal of exception with in finished pressure grazing reduce to drier seasons during but EU slaughter market Target stores. as yearlings and sold feedlots and are fattened not heifers Surplus herd. Belmont and fattening breeding EU accredited Heifers mating. week 24 bought. Historically bulls replacement Only breeders. to sold usually years. 2 at joined cropping fodder Opportunity topography. micro by exacerbated cost main is control Regrowth sugargraze. usually of 800 head around run and normally enterprise and fattening Breeding and farming. Cattle and sold fattened is progeny Most cattle. mainly) and Droughtmaster X (Brahman bred cross and average annually test pregnancy We heifers. breeder replacement for except old years 2 at when fattened. sold are cows empty and all 90% plus is rate pregnancy till minimal of 400 ha approximately developing are We stock. in growing HGP’s use We and run River the Dawson from water of allocation a 400 meg have also We dryland farming. for suitable and not sandy extremely is soil This circles. on two irrigator pivot centre one 32 ha well grow to seems which leucaena to planted 120 ha have We crops. irrigation intensive most areas. these increase to and plan in winter) frosting (despite area in this 150 plus breeders 1,000 runs Wongadoo operation. and fattening breeding EU accredited progeny and all heifers replacement 500 breeders,100 runs Barfield while heifers replacement weaning. post on the scrub run and steers heifers 12 months. All at speyed are heifers Non replacement on finished are and steers heifers Speyed country. on forest run are breeders while country and muster each at tested pregnancy are dry cows All possible. where old 1/2yr 2-2 at forage old. year 10-11 at sold are cows All empty. if sold

Land types red/yellow texture contrast soil contrast texture red/yellow clay on brown softwood scrub ha 1,000 soil clay on deep red softwood scrub 500 ha cracking on black/brown open downs 500 ha soil on rosewood with ironbark narrowleaf 400 ha soil stoney shallow on deep gum flats red gum/river blue 200 ha soil clay cracking black Prominently brigalow softwood scrub with with softwood scrub brigalow Prominently & open downs ridges ironbark of areas small Ironbark, with originally soils sandy One third soils Loamy and wilga. tree bottle eucalyptus, ironbark coolibah, with River the Dawson along is The remainder spp. and other eucalyptus soils. on black brigalow/belah Namgoori clay brigalow mulching self ha 1,070 Carisma Softwood scrub. ha 789 scrub. softwood/brigalow flooding ha 124 brigalow ha 494 soil black 30 ha ridge siltstone mudstone 20 ha 57.75% brigalow on heavy clay soil clay on heavy brigalow 57.75% soil powdery clay gum on light Dawson 25% soil loam clay on brown Ironbark broadleaf 7.5% soil clay on pebbly 5% lapunyah soil loam softwood on clay 4.75% and bloodwood ash, Bay Moreton ha 891 soils on sandy ironbark soil loam on sandy and ironbark box 300 ha soil on brigalow brigalow ha 250 gum on heavy and blue coolibah 680 ha clay cracking gum and spotted Ironbark, narrowleaf 300 ha country range useless on stoney lancewood heavy to and softwood on light brigalow ha 696 soils scrub and gum on deep sand box ironbark, ha 3,437 soil soil clay on heavy brigalow ha 283 on gum and lancewood spotted ha 2,080 soil sand red plateaus/deep laterite cracking on dark ironbark narrowleaf ha 2,043 soilclay on and bloodwood ironbark narrowleaf 301 ha on ridges soil stoney shallow soil on medium clay brigalow/belah ha 243 non- on brown softwood scrub ha 2,490 rock soil/heavy clay cracking and softwood on rosewood ironbark, 1,268 ha on ridges soils stoney shallow brown/grey on gilgaied brigalow ha 3,000 soil clay cracking About half brigalow, bauhinia, softwood scrub softwood scrub bauhinia, brigalow, half About soils. loam sandy on scrub leaf gum and silver blue includes The remainder eucalypt and box, flats sand on river bark iron soils. sandy shallow on forest and bloodwood on ironbark +/- silverleaf brigalow ha 2,000 with interspersed soils contrast texture shallow cracking clays on blackbutt/yapunyah with brigalow ha 1,000 soil sodosol brown on box and poplar bauhinia brigalow, 900 ha mm 0 mm annual annual rainfall 700 mm 700 650 mm mm 700 650 mm mm 700 560 mm 670 72 Average Average Approx. 20 km Approx. of south east Banana of 3 km west Moura km - 13 Namgoori Banana south of - 12 km Carisma of south east Banana Oombabeer Rd, Rd, Oombabeer Moura of west of South west on the Moura River Dawson Banana Moura of East On the Dawson On the Dawson km north 25 River, Theodore of Location Business partners Ken and Claudia and Claudia Ken Stephenson the owner/ are managers Family Ballentine & Julie Myles Ballentine & Kaye Bruce Ballentine. Joseph & Gail & Gail Joseph Johnstone John & Angus John & Angus Macrae & Desley Norman Becker HomerPhil of South east Pastoral Tremere owned Company, the Hudson by family Owen & Hazel & Hazel Owen are Anderson and owners with managers from input Fiona daughters and Lorraine. also Lorraine on farm. works

oura group oura Property and area Wilgavale Namgoori 1,070 ha Carisma ha 1,457 Can-Berra and Can-Berra Flat-Top ha 2,900 Kilmory ha 3,654 Paranui ha 3,117 Barfield ha 12,145 Tremere ha 9,558 M Woodleigh ha 2,791

6 ello All. My name is Brendan Hamilton and I am the Client HLiaison Officer for QRAA in the . QRAA is a statutory authority which administers various schemes on behalf of the Federal and State Governments. You may be familiar with some of our programs such as EC Interest Subsidies and the recent Flood Assistance program. We have eight regional offices spread across Queensland and our head office is located in . The Rockhampton office services an area from Miriam Vale to St Lawrence, across to Capella, down to , down to Theodore and across to Miriam Vale including the former shires of Banana and Calliope. I can visit your farm/grazing property or alternatively you can visit me at my office here at the DPI&F in Rockhampton. Tremere Pastoral is a stud/commercial breeding operation with progeny normally sold direct direct sold normally progeny with operation breeding a stud/commercial is Pastoral Tremere feedlot. and on farm backgrounding of chain a production through or abattoir buyer bull to and bulls to some going with the feedlot to directed normally are production and hay Grain bulls. the sale for grown is Oats weaners. & KA SM years. in drier grazed is stubble crop The grain farm. off sold are and hay grain Excess their employment. part of as on the properties cattle graze Hudson Recently EU accredited. Breeding fattening enterprise consisting of Droughtmaster X. Droughtmaster of consisting enterprise fattening Breeding EU accredited. Recently turnoff. reliable more provide to used system Silage cropping. grain for used 350 ha Approximately to bulls and Charbray Limousin using now 400 breeders) (approx herd a Brahman Originally meatworks. to cows cull selling and feedlots, fatteners grass for weaners produce to direct Selling enterprise. and fattening breeding greyman EU accredited grazing. ha 1,727 feedlots. to direct selling operation non EU backgrounding Also works. market as grain and or milled silage of feeding supplementary incorporate Both enterprises breeders. wet Excepting dictate. and economics forage chickpea, sorghum, wheat, predominantly enterprise dryland farming 800 ha Provisions and sunflower. sesame corn, include Other crops mungbean. (silage), sorghum cultivation. for suitable not or land land, productive on less leucaena for made EU Accredited breeding and fattening enterprise. Breeding towards pure Droughtmaster herd herd Droughtmaster pure towards Breeding enterprise. and fattening breeding EU Accredited yearlings. as joined heifers calf first to sire terminal of exception with in finished pressure grazing reduce to drier seasons during but EU slaughter market Target stores. as yearlings and sold feedlots and are fattened not heifers Surplus herd. Belmont and fattening breeding EU accredited Heifers mating. week 24 bought. Historically bulls replacement Only breeders. to sold usually years. 2 at joined cropping fodder Opportunity topography. micro by exacerbated cost main is control Regrowth sugargraze. usually of 800 head around run and normally enterprise and fattening Breeding and farming. Cattle and sold fattened is progeny Most cattle. mainly) and Droughtmaster X (Brahman bred cross and average annually test pregnancy We heifers. breeder replacement for except old years 2 at when fattened. sold are cows empty and all 90% plus is rate pregnancy till minimal of 400 ha approximately developing are We stock. in growing HGP’s use We and run River the Dawson from water of allocation a 400 meg have also We dryland farming. for suitable and not sandy extremely is soil This circles. on two irrigator pivot centre one 32 ha well grow to seems which leucaena to planted 120 ha have We crops. irrigation intensive most areas. these increase to and plan in winter) frosting (despite area in this 150 plus breeders 1,000 runs Wongadoo operation. and fattening breeding EU accredited progeny and all heifers replacement 500 breeders,100 runs Barfield while heifers replacement weaning. post on the scrub run and steers heifers 12 months. All at speyed are heifers Non replacement on finished are and steers heifers Speyed country. on forest run are breeders while country and muster each at tested pregnancy are dry cows All possible. where old 1/2yr 2-2 at forage old. year 10-11 at sold are cows All empty. if sold Current programs in my region include the EC Interest Subsidy program for those located in the southern portion of the former Shire, the south-eastern portion of the former Bauhinia Shire, the whole of the former Mt Morgan Shire, and eastern and western portions of the Banana and former Calliope Shires respectively. Interest subsidies of between 50 to 80% of your interest are available depending on which shire you are currently in. If you were affected by the recent floods in January and February

this year, you may be eligible to apply for grants up to $10,000, and in certain cases up to $25,000, to help you recover from damage sustained from direct flood inundation. Eligible producers and small businesses can also apply for low interest loans of up to 1,000 ha softwood scrub on brown clay on brown softwood scrub ha 1,000 soil clay on deep red softwood scrub 500 ha cracking on black/brown open downs 500 ha soil on rosewood with ironbark narrowleaf 400 ha soil stoney shallow on deep gum flats red gum/river blue 200 ha soil clay cracking black Prominently brigalow softwood scrub with with softwood scrub brigalow Prominently & open downs ridges ironbark of areas small Ironbark, with originally soils sandy One third soils Loamy and wilga. tree bottle eucalyptus, ironbark coolibah, with River the Dawson along is The remainder spp. and other eucalyptus soils. on black brigalow/belah Namgoori clay brigalow mulching self ha 1,070 Carisma Softwood scrub. ha 789 scrub. softwood/brigalow flooding ha 124 brigalow ha 494 soil black 30 ha ridge siltstone mudstone 20 ha 57.75% brigalow on heavy clay soil clay on heavy brigalow 57.75% soil powdery clay gum on light Dawson 25% soil loam clay on brown Ironbark broadleaf 7.5% soil clay on pebbly 5% lapunyah soil loam softwood on clay 4.75% and bloodwood ash, Bay Moreton ha 891 soils on sandy ironbark soil loam on sandy and ironbark box 300 ha soil on brigalow brigalow ha 250 gum on heavy and blue coolibah 680 ha clay cracking gum and spotted Ironbark, narrowleaf 300 ha country range useless on stoney lancewood heavy to and softwood on light brigalow ha 696 soils scrub and gum on deep sand box ironbark, ha 3,437 soil soil clay on heavy brigalow ha 283 on gum and lancewood spotted ha 2,080 soil sand red plateaus/deep laterite cracking on dark ironbark narrowleaf ha 2,043 soilclay on and bloodwood ironbark narrowleaf 301 ha on ridges soil stoney shallow soil on medium clay brigalow/belah ha 243 non- on brown softwood scrub ha 2,490 rock soil/heavy clay cracking and softwood on rosewood ironbark, 1,268 ha on ridges soils stoney shallow brown/grey on gilgaied brigalow ha 3,000 soil clay cracking About half brigalow, bauhinia, softwood scrub softwood scrub bauhinia, brigalow, half About soils. loam sandy on scrub leaf gum and silver blue includes The remainder eucalypt and box, flats sand on river bark iron soils. sandy shallow on forest and bloodwood on ironbark +/- silverleaf brigalow ha 2,000 with interspersed soils contrast texture shallow cracking clays on blackbutt/yapunyah with brigalow ha 1,000 soil sodosol brown on box and poplar bauhinia brigalow, 900 ha soil contrast texture red/yellow $250,000 to assist with further recovery, with terms at 4% with no fees. mm 0 mm 700 mm 700 650 mm mm 700 650 mm mm 700 560 mm 670 72 QRAA also has a range of low interest loan programs, designed to help you improve your productivity or to assist you start up your first primary production enterprise. Loans of up to $500,000 are available, at concessional rates, with repayments structured to your requirements. Approx. 20 km Approx. of south east Banana of 3 km west Moura km - 13 Namgoori Banana south of - 12 km Carisma of south east Banana Oombabeer Rd, Rd, Oombabeer Moura of west of South west on the Moura River Dawson Banana Moura of East On the Dawson On the Dawson km north 25 River, Theodore of If you would like any further information on these schemes or any of our other programs, please don’t hesitate to contact me on any of my contacts below. Brendan Hamilton Client Liaison Officer, QRAA Rockhampton Ken and Claudia and Claudia Ken Stephenson the owner/ are managers Family Ballentine & Julie Myles Ballentine & Kaye Bruce Ballentine. Joseph & Gail & Gail Joseph Johnstone John & Angus John & Angus Macrae & Desley Norman Becker HomerPhil of South east Pastoral Tremere owned Company, the Hudson by family Owen & Hazel & Hazel Owen are Anderson and owners with managers from input Fiona daughters and Lorraine. also Lorraine on farm. works 25 Rd (PO Box 6014, CQMC Q 4702) PARKHURST QLD 4702 Ph: 07 4936 1872 Fax: 07 3032 0390 Mob: 0417 775 245 Email: [email protected],au Web: www.qraa.qld.gov.au oura group oura Wilgavale Namgoori 1,070 ha Carisma ha 1,457 Can-Berra and Can-Berra Flat-Top ha 2,900 Kilmory ha 3,654 Paranui ha 3,117 Barfield ha 12,145 Tremere ha 9,558 M Woodleigh ha 2,791

7 planning and property development planning that the Muller’s undertook with Stuart McArthur. Gavin had been pondering on planting leucaena for over two years after Stuart had assisted them in getting their business on track. They now hope to continue to develop and monitor this plan. In November 2007, Gavin planted the first leucaena patch of 200 acres with the assistance of Tom Carige. Gavin is using the leucaena to rejuvenate poorer quality country especially in areas where traditionally feed production is minimal. Gavin hopes that with leucaena dominating

From left: Katie, the poorer areas of his Biloela properties Cameron, Dan, Gavin and Megan and in conjunction with rotational grazing Gavin, Megan he will be able to improve the quality and Ben Muller Muller profile of feed and increase growth rates and turnover. iloela CQ BEEF members Gavin Gavin has planted 7 m twin rows of and Megan Muller operate under leucaena and questions whether he will Ba couple of slogans. The Biloela plant 200 acres again in one hit. Gavin has district graziers ‘aim to improve all the a goal of planting 200 acres of leucaena a time’ and just want to ‘keep it simple’. year for the next 4 years. However, at this Together the Muller’s aim to improve stage he is not sure that locking up 200 property standards across the board and acres at a time and then managing 200 want to develop their properties to their acres of leucaena growth in its early stages full potential. is a good management decision for his The Muller’s and their four children operate business. Although with a chuckle, Gavin under Dellmor Grazing Company and own then says that come spring next year he a 1,108 hectare aggregation comprising will probably still plant 200 acres, but at Gavyna, Dellmor and Nova. This cluster of least this time he will know what he is in properties is located approximately 25 km for. Muller’s are very much looking forward north west of Biloela. Muller’s also co-own to putting their first mob of cattle on the the 6,312 ha property Cooinda, with Paul Leucaena and seeing the benefits first- Ross. Cooinda is situated 20 km west of hand. Ubobo in the Calliope district. Gavin and Megan are pleased that CQ The Brahman dominated breeder herd BEEF enables them to have the availability is located on the spotted gum/ironbark of people with a wide range of skills. The hilly country of Cooinda. All weaners are Muller’s believe that networking within trucked to the fattening brigalow/blackbutt the group and other like-minded groups soils of the Biloela properties where they is a great resource to have. Gavin and are finished for the EU market. Finished Megan hope that CQ BEEF will aid them in animals are sold to Dinmore or Bothwicks continuing to develop their knowledge base meatworks through a marketing group that and improve their business. Muller’s are part of. Gavin has also from Given that time is limited, Gavin’s dream time to time sold to feedlots and other holiday would be going away anywhere opportune markets. and coming home to grass as high as the Currently Gavin and Megan’s newest pet fence. On the other hand Megan’s dream project is leucaena development. This holiday would be able to take all the decision has arrived after some budget children and have a family holiday in Fiji.

8 assets including capital appreciation is Spotlight on beef approximately 11.4%. Without capital industry economics appreciation it is 0.87%. The Herron Todd White Australian Grazing Property Rebecca Gowen Index shows a 14.9% per annum rise for Agricultural Economist Rockhampton Central Queensland properties from 1980 to 2007. From 1999 to 2007 the increase he recent Spotlight on Beef Forum has been 26.6% per annum. While these held in Rockhampton for the property value increases have allowed TAgribusiness sector highlighted many producers to survive where they some interesting issues for the industry’s otherwise wouldn’t, the question remains as profitability. to whether the land and resources involved are being utilised at the most efficient level. Economics of beef There is no questioning the importance of The major profit drivers are scale the beef industry to the Central Queensland (turnover), gross margins and overhead economy. In this region alone the industry costs. Assuming the gross margins for a is worth over $750 million and accounts particular enterprise on a particular land for 26% of the total value of the beef type are fairly fixed, the other options are industry in Queensland. Beef is the second to increase turnover, thereby increasing biggest export for Queensland and the economies of scale or reduce overhead industry employs over 15,000 people across costs. the state. To highlight the importance of scale, On the surface, these figures would imply between 2004-05 and 2006-07 beef that the beef industry is in good shape. operations with herds greater than 1, 200 Digging deeper, the reality is a little more head maintained a positive profit between uncertain. ABARE recently suggested that $80,000 and $185,000. Those with 600- for agriculture to survive there will need to 1,200 head averaged $42,000 while those be a 60% increase in productivity just to with 300-600 head averaged a loss of deal with climate change. This presents a $37,000. significant challenge for the beef industry Due to the rise in land prices, expansion where total factor productivity growth through land acquisition is becoming (value of output relative to the value of increasingly difficult thus other options inputs used) since 1980 has been almost such as intensification and genetic zero. In comparison, the grains industry has improvements need to be investigated. doubled their productivity in the same time. This highlights the other major difference What is the difference between between the grain and beef industries, the these two industries? amount spent on research, development and extension (RD&E). Much of the The first answer is that the grain industry is increase in grains productivity has been a much better at managing their operations result of the development of new cultivars with one goal in mind; Profit. At a which are more disease resistant, less water moments notice most of them can tell dependent or deliver higher yields. These you how much it costs to plant, grow and improvements have been made possible harvest one tonne of grain and at what by the fact that for every $1 of grain price they will make a profit. On the other production in Queensland, 3 cents is spent hand, few cattle producers know exactly on RD&E. In the beef industry it is just 0.3 how much it costs to produce one kilogram cents. of beef and what their breakeven price is. The first step in improving productivity Highlighting this is the fact that beef business is to understand the profit drivers of profit, which indicates economic viability, beef production and how these can be has hovered around zero since 1991. manipulated to maximise profitability. The Consider also, that for northern CQ Beef project can play a major role in Australian beef producers the return on helping producers achieve this goal.

9 stocking rates may have placed the country Degradation – gradual at risk but did not really lead to degradation. process or event driven? A trial at ‘Wambiana’ south-west of Charters Bill Schulke, Extension Officer, Bundaberg Towers had fair to good seasons for the first half (1997–2001) but very poor seasons for razing trials have shown the the second half (2002–2006). Under the high impact of stocking rate (SR) to be stocking treatment, there was a significant Gvariable in terms of profitability and loss of land condition in the dry years. sustainability. The impact of management on Economic analyses from ‘Wambiana’ show land condition, both positive and negative, that a light to moderate stocking rate was appears to be episodic. Management profitable and sustainable. The heavy therefore needs to be adaptable to avoid the stocking rate was neither sustainable, due risks associated with prolonged drought and to loss of land condition, nor profitable to exploit the opportunities that consecutive because feeding costs were high, animal good years present. production (especially in kg/hd) was During the past two decades a number of inefficient, and animals of lower value were mid to long-term grazing trials have been produced. conducted in various regions across northern Australia. Some common themes have Economics from the ‘Wambiana’ trial emerged from the results of these trials. Economic analyses from other studies (e.g. GLASS and ‘Galloway Plains’) indicated One of these themes is that degradation that returns were maximised at moderate (loss of land condition) tends to be event to high stocking rates but that these rates driven. High stocking rates and high annual were probably unsustainable (although no pasture utilisation rates are considered to be major loss of land condition was seen in unsustainable as they lead to a loss of land either trial). These analyses didn’t fully take condition. However, under good seasonal into account the long term impact of lost conditions or a string of good seasons, land condition which either reduces carrying high stocking rates may not cause much capacity or increases management and degradation. rehabilitation costs. The other aspect of these Real degradation is often associated with a two trials was that they incorporated an very poor season or a string of poor seasons. exotic legume which may have masked the impact of stocking rate on individual animal Show me the money performance. The Ecograze project conducted near ‘Wambiana’ Light SR Charters Towers during the mid 1990s clearly showed that high utilisation rates (>50%) in the absence of strategic spelling led to a loss of land condition. However, the Aristida- Bothriochloa (AB) project, conducted over the relatively better seasons of the mid to late 1990s, showed that moderate to heavy March 2000 Accumulated surplus per 100 ha (10% interest on cattle; 20c premium for condition) $20 000

$16 000 Light SR

$12 000

$8 000 Heavy SR

$4 000 April 2007 $0 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 Tougher seasons but still fair condition

10 ‘Wambiana’ Heavy SR seems to have done so in a short period of time. Just because a paddock could run 100 breeders during the 1970s and 1980s doesn’t mean it can still run that number. In fact, it is the paddocks where producers have attempted to maintain the higher stocking rates through the last 20 years that now aren’t responding to rainfall – they have lost condition. Reducing stock numbers during April 1998 dry years helps prevent degradation. You need to be adaptive when the better seasons present themselves to take full advantage of them. This may include planning to use fire, stocking up to take advantage of increased pasture growth, spelling paddocks to allow better grasses to establish and set seed, managing timber regrowth, sowing pastures for a specific Dec 2006 reason, and treating weeds. Grazing lands are complex systems and highly Tougher seasons and loss of land condition variable. Hard and fast rules don’t apply! Degradation causes and rehabilitation Stocking to safe carrying capacity, varying High stocking pressure during the critical stock numbers in response to seasonal early phase of growth in perennial grasses conditions (where practical to do so) and is detrimental to pasture health. During dry spelling paddocks during the growing season (either each paddock once every three to years you often get some rain but it is not Always come out of a enough to sustain pasture growth for more five years or all paddocks each year in a dry spell, no matter how than a couple of weeks. In these situations, rotational system) are useful principles. prolonged, with stubble on the ground even moderate stocking rates lead to high grazing pressure on individual tussocks. This effect is compounded if there are several poor seasons in a row. If degradation is episodic, then pasture recovery probably is as well. Pasture spelling, reduced stocking rate, strategic use of fire, sown pastures and weed management are all useful tools to improve land condition. However, you may need a couple of fair to good seasons in a row to see the full benefit. Conversely, these strategies may not work at all during periods of prolonged drought (although reducing the stocking rate has benefits from an animal management perspective). Land condition is the ability of grazing land to produce useful forage and is a relative measure of the health of grazing lands. It has three components: Country that is in good condition is better able to handle episodic events and is more Soil condition High levels of organic matter and good soil structure are key stable than country that has already lost indicators of soil condition. Erosion indicates a loss of soil condition. condition. Pasture condition The density and coverage of 3P grasses (perennial, productive, palatable) determines pasture condition. Weeds indicate a loss of Management principles pasture condition.

Grazing land management needs to be Woodland condition Woody plants compete with pasture for water and adaptive. It can have taken many years for nutrients. Increasing tree density indicates a loss of land condition. a problem to become evident, when it often

11 Staff profiles Byrony Daniels, Childhood: Brought up on cattle and Beef Industry Development Officer grain property between Emerald and Capella Career: Studied Bachelor of Agricultural Science specialising in Rural Technology at – Gatton. Studies included fourth year project comparing cell grazing and rotational grazing on two different soil types in Central Queensland. Worked as AgForce CQ Regional Member Co-ordinator for three years. Commenced as Emerald Beef Industry Development Officer in June. Interests: Polocrosse, travel Brag sheet: I survived the crash landing of a hot air balloon in a paddock of cacti near Phoenix Arizona. Holiday: Across Africa. Spend a couple of weeks helping to build orphanages, a couple of weeks on safari and then make my way to Egypt. I would really like to swim in the Devils Swimming Pool on the edge of Victoria Falls Zimbabwe. If you go at the right time of the year you can get right to the edge of the falls.

Rebecca Gowen, Regional Development Officer (Ag Economist)

Childhood: Brought up on sheep and cattle property near Armidale in NSW. Career: Studied Bachelor of Natural Resource Economics (Agricultural Economics) at University of Queensland. Worked part-time in Strategic Policy (DPI&F) in Brisbane during my final year at uni. Moved to Toowoomba in January this year as regional economist. In April, moved to Rockhampton to take over as the economist for the CQ Beef project. Interests: Polocrosse, travel, skiing Brag sheet: Won grand champion bull at the Toronto Royal Show while working at an Angus stud in Ontario, Canada. Holiday: Toss up between safari in Africa and skiing in Canada – I can’t choose!

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