The majority of beef farmers surveyed by the Department of Agriculture have said they are not willing to rear dairy-bred calves for beef.

A survey of over 1,200 beef farmers by the Department on the integration of dairy-beef systems has shown that 57% of farmers who responded are not willing to rear dairy calves for beef.

An expectation of a poor profit margin, poor-quality calves and price volatility/market uncertainty were the top three reasons dissuading farmers from rearing dairy-beef calves.

The loss of recognition as a quality beef producer also ranked high on the list of factors dissuading farmers.

On potential strategies that would help to improve the level of dairy-beef integration, a guaranteed pricing mechanism was the first preference for farmers, followed by grants for dairy-beef infrastructure, such as handling facilities and weighing equipment, while a system to source quality calves was voted third.

Production models

When asked to rank potential production models for dairy-beef, a system where the beef farmer purchases the calf and bring it through to slaughter with a guaranteed price mechanism ranked the highest.

In second place was a birth-to-slaughter production contract system with contracts between the dairy farmer and beef farmer for the supply of an agreed calf type and a contract between the beef farmer and processor to supply minimum agreed price at slaughter.

Voted a close third was a model whereby beef farmers are contracted and paid to rear dairy-beef calves through to slaughter for dairy farmers.

Despite the survey responses, mart managers have reported large numbers of dairy-bred calves moving west this spring, with milk replacer sales also reported to be up by as much as 17% in some western counties.