The profitability of cattle policies on Marlborough and North Canterbury dry hill country farms: A dissertation submitted in partial fulfilment of the requirements for the degree of Bachelor of Agricultural Science (Honours) at Lincoln University

An investigation into the profitability and feasibility of cattle policies run on Marlborough and North Canterbury dry hill country was undertaken. This involved an investigative survey of Marlborough and North Canterbury dry hill country farms and the creation of a '"model" farm. Feed budgets (feed profile) and gross margins were prepared to compare the profitability and feasibility of cattle policies implemented on this model farm. Farmers' perceptions of important issues in the literature regarding beef cattle farming and cattle farming on dry hill country were also obtained from the farm surveys. Farmers considered cattle to be essential to their farming operations. They played a major role in pasture and parasite control for the sheep enterprise. Other important characteristics of cattle operations included the low requirement for labour, low costs, and income diversity. Farmers considered Angus, Hereford and Angus x Hereford cattle to be the most suitable breeds for both breeding cows and finishing stock. Exotic and Friesian cross cattle were deemed unsuitable on Marlborough and North Canterbury dry hill country. Results obtained from cattle policies implemented in the model farm suggest that a policy involving an Angus breeding cow herd, breeding own replacements, using a terminal sire over 50% of adult cows and finishing surplus progeny at 28 months and a policy which purchased weaner steers to finish at 3 .5 years of age were the two most profitable and feasible options on Marlborough and North Canterbury dry hill country. While the breeding cow policy returned a lower gross margin per unit of feed consumed (GM/feed unit) of $27.87 compared to finishing 3.5 year steers ($29.43 GM/feed unit) the benefits from the added complementary benefit and feed demand pattern of breeding cows (3 b) were thought to improve the profitability of this policy. to equal that of 3 .5 year steers. Bull beef finishing policies, whilst very profitable when run as separate unit, were less profitable when run on a whole farm basis in conjunction with a breeding cow, selling weaner policy. The gross margin from this combined policy was $26.89 /feed unit very similar to that of an Angus breeding herd, finishing Angus progeny at 28 months (GM/feed unit of $26.84 ). Selling yearling progeny from a breeding cow herd returned a GM/feed unit of $27.26. While reasonably profitable, this policy is vulnerable to regulatory restrictions, if Tb infection of the herd eventuates. This will require cattle to be sold to slaughter. Breeding cow, 20 month finishing policies (2a, without lucerne and 2b, with lucerne) and a breeding cow herd, mating yearling heifers and selling progeny at 28 months of age were the least profitable of all policies investigated, returning GM's/feed unit of $23.15, $25.12 and $23.15 respectively. Yearling heifer mating was shown to be an unprofitable use of feed