Measuring, monitoring and collaboration

A group of Dumfriesshire beef producers have developed a collaborative marketing blueprint which is helping to ensure they’re maximising both their cattle’s potential and their margins throughout the chain and meeting market requirements.

 

Rory Shennan centre, with Margaret Kingan and Scott Henderson

Rory Shennan with some of his Charolais crosses

The finishers

Scott Henderson and Margaret Kingan are committed to finishing quality cattle; between them they turn over an annual 3,000 head of mainly Charolais crosses. Where to source the appropriate suckled calves could have been a major issue, however they have developed a successful collaborative blueprint which features 15 suckled calf producers farming within a 20 mile radius of their steadings – Scott at Carswadda, Beeswing and Margaret, at Lochhill, New Abbey. The arrangement supplies the majority of their requirements, the remainder being sourced from the auction marts.

 

“Scott and I have been working together since 2001 when live markets closed and we were forced to turn to buying privately; trading with local farmers made common sense. We’re able to purchase relatively large batches of animals of the same age from a minimum number of known sources, which has enabled us to reduce transport costs, along with stress and potential health issues,” Margaret explains.

 

Calves are purchased at between 11 and 12 months of age and taken through to finishing from 18 months. “Our preference by far is to buy Charolais crosses, simply because of their superior performance; we target steers to achieve a DLG of 1kg and go on to meet with processor requirements at 360kg to 370kg deadweight while heifers are targeted at a DLG of 0.9kg and 310kg deadweight. The majority grade with within the R and U specification.” The entire throughput is marketed direct to Stoddarts, based at Ayr which supplies multiples and top end restaurants.

 

“The ongoing partnership is working really well. We spilt each batch of suckled calves by gender according to personal preference, says Margaret. “I just happen to prefer working with steers, while Scott is happier with heifers. We’ve both adopted semi-intensive finishing systems in which the beasts are grazed and fed a semi TMR.

 

“The venture has also enabled us to develop some very strong working relationships with our suppliers. We keep in frequent contact and return to each of them the performance data and kill sheets from every individual animal purchased,” she says.

 

The data includes calf weight at purchase, guide purchase price, number of days to finishing, liveweight at point of sale, deadweight, grade, KO% and sale price together with margin per day and overall margin. The margin figure purely reflects purchase and sale figures and does not contain the finishers’ fixed or variable costs. At the end of each year, the data is averaged across the group of 15 suckled calf producers and those figures act as a benchmark for each individual. 

 

“It’s a routine that enables each suckler producer to work through the figures, identify their strengths and weakness and take responsibility for their own individual system as they wish, while for us, this data enables us to see whose cattle are performing and those who aren’t. Every supplier thinks they have the best! “

 

Scott adds: “The critical thing for us is to be able to buy in the correct raw material. We depend on these suckler men, our suppliers, buying a terminal sire that will deliver a calf to finish, not for replacement purposes, and yes, we prefer Charolais crosses, however there are times when supply doesn’t always match demand.

 

“There are also instances where we’ve found cattle sired by other Continental bulls have not achieved target daily liveweight gain and we’ve had to recommend he is replaced by another within the breed’s top 10% on performance data.”

 

 

The suckler producer

Rory Shennan trades a portion of his Charolais cross steers and heifers to Margaret Kingan and Scott Henderson from his family’s 200 cow split calving suckler herd based at Carsegowan, New Abbey, a 230 ha LFA holding which he farms in partnership with his grandfather, William Barbour.

 

“We’ve used Charolais here as a terminal sire for more than 30 years simply for the growth factor. My grandfather has always been a great believer in the fact if the calves weigh, then they pay and it’s one I can’t dispute. I’m rearing our calves to 11 to 12 months, steers to average 400kg and heifers to average 375kg,” he explains.

 

“However, our system has moved with the times, and we’re using various advancements in technology to improve our efficiency and run a profitable business,” he explains. “For example, we implement a proactive approach to herd health and also vaccinate the cows for BVD and IBR. We attempt to keep a tight calving pattern and carefully manage our cows in the run up to calving.

 

“When we buy a new Charolais bull, we continue to select for scale and scope, however we are now using Breedplan data as a back up tool; since the data has become more accurate, it means we’re no longer going in blind, we’re able to select bulls with more of a chance of breeding fast growing calves.

 

“We’re now investing in bulls within the breed’s top 10% of performance indices, and in particular for 400 day weight, muscle depth and ease of calving Estimated Breeding Values. In future, we’ll also take in 600 day weight in order to help Margaret and Scott achieve target finishing weights faster.

 

“They come back year in year out for our cattle; we put them into large even batches which have the growth rates, and they’re leaving the margins. In fact our cattle are consistently performing better than the average for the entire group which they’re benchmarked against.

 

“For me, the initiative offers plenty of real benefits: I can put away a large batch of beasts in one day, and there’s no preparation required clipping, it takes less than 10 minutes to transport them to Lochhill where they’re put over the weigh bridge, and then another 10 minutes to take the heifers on to Carswadda. Staying local, I’m able to keep an eye on how they’re performing, furthermore checking through the final performance data and kill sheets is really useful.

 

“This detailed information measuring the performance of every single beast keeps the pressure on me to ensure I continue to improve my cattle, their genetics and management. I look carefully at the top 10 and bottom 10 performers, that’s about one third of a batch, and check their sire and dam. If one of the bulls is consistently breeding poorer performers, then I would look to change him, and there have been occasions where a Continental bull was leaving calves with growth rates that failed to match the finishers’ targets.” He adds: “What’s left is for me to do this year is to go and see the carcases hung up and make that final detailed appraisal.”