Mix and match beef to meet market demand

Mix and match beef to meet market demand by Pamela Horsley, KONDININ GROUP Composite cattle are purpose-built to perform in their selected environments and meet market specifications more often. The right composite can produce heavy, high-quality beef at a lower production cost than purebreds under certain conditions. At a glance Checklist for composite breeding Know the market requirements, environmental constraints and key desirable traits needed before starting a breeding programme. Use purebred sires with estimated breeding values to target desirable traits. Multi-breed EBVs are being developed for composite stud cattle. Select breeds with comparative research information that proves they are the best for the targeted traits. Consider using artificial insemination in the initial stages of the breeding programme to maximise the range of bloodlines used and select high performers. Plan each stage of the programme to ensure a suitable final mix. For closed composite herds, ensure facilities are large enough to run 15 20 bulls of each breed and at least 500 cows to avoid inbreeding. For an open composite herd, consider forming alliances with breeders of similar composite mixes so bulls can be swapped. will maximise the bloodlines used while retaining a similar breed mix. It will take three generations for the variation to decrease to a desirable level and stabilise the composite. Consider the breed criteria of any grading schemes (such as the Meat Standards Australia Beef Grading Scheme) when choosing the final breed mix. Breeds such as Droughtmaster, Santa Gertrudis and Brahman, considered purebred today, were developed through composite breeding. What are composites? Composite cattle are developed by crossing two or more breeds and then stabilising or fixing the cross by interbreeding for several generations. The term composite is used loosely in Australia and tends to include some forms of crossbreeding (using first and second crosses between breeds). Crossbred cattle may be part of the development phase of a composite herd or sold as a terminal beast. Unlike crossbred cattle, composites are usually bred to their own kind after the required traits have been established. There are many benefits of composite cattle breeds. Breed performance Combining complementary breeds can lift growth, carcass quality and carcass yield. Extra vigour Retained heterosis gives extra vigour in most of the progeny s traits and in less heritable traits such as fertility, milk production, mothering ability and longevity or survivability. remains true even when cattle are crossed to their own type. Production A higher proportion of cattle meet target market specifications, depending on the base stock used. Flexibility Increased flexibility as producers can continually fine-tune their herd traits to keep up with market changes. Growth Better growth of steer and cull-heifers. FIGURE 1 An example of heterosis for weaning weight Pamela Horsley Using composite bulls can increase progeny performance in many traits while still producing a uniform calf type. Uniformity Progeny with greater uniformity than those from rotational crossbreeding programmes using the same breeds. Marketing Opportunities to form a market alliance if a producer can continuously breed cattle to the buyers specifications. Heterosis For any particular cattle characteristic or trait, heterosis is the difference between the progeny s actual performance and the average performance of the parent breeds. If this difference is positive (an increase in performance for a particular trait), heterosis is called hybrid vigour. For example, hybrid vigour occurs if the fertility of Angus Hereford (and Hereford Angus) cows is more than the average fertility of purebred Angus and purebred Hereford cows. Heterosis can be maternal, paternal or individual. Maternal and paternal heterosis refers to the performance of the animal as a British breed A calf weaning weight = 220kg British breed B calf weaning weight = 180kg Therefore the average weaning weight for purebred A and B calves is: 220+180 = 200kg 2 Average weaning weight for A x B calves and B x A calves = 210kg Heterosis = (average weaning weight A x B and B x A) (average weaning weight purebreds) = 210 200 = 10kg Heterosis percentage = heterosis in kg x 100 (average weaning weight purebreds) 1 = 10 x 100 200 1 = 5% Source: Kondinin Group. 65

dam or sire, so are used in reference to traits such as milking ability, fertility and mature cow weight. Individual heterosis describes the animal s individual performance in certain traits such as weight gain, survival and carcass traits. Heterosis is usually expressed as a percentage (see Figure 1, page 65). How many breeds? The fraction of individual, maternal and paternal heterosis retained in the final composite depends on the type of crossing system used to create the composite and the proportion of each breed retained in the composite. The more breeds included in a composite, the more heterosis is retained. But if more than four breeds are used, the level of heterosis retained increases at a lower rate. In reality, using four breeds is a good compromise between high levels of heterosis and easy management. If a purebred cow is rearing a crossbred calf, the only heterosis is in the calf s performance as the purebred cow will not have any extra maternal heterosis. Also the larger the genetic difference between breeds, the larger the heterosis. TABLE 1 Heterosis retention and estimated weight increase Breeding system Per cent of maximum Estimated increase in calf weight individual heterosis retained (%) weaned per cow exposed (%) relative to a two-breed cross (F1) Straight purebred 0 0 Two-breed cross (F1) 100 5 Three-breed cross 100 23 Two-breed rotation 67 15 Three-breed rotation 86 20 Two-breed composite 1/ 2 A, 1 / 2 B 50 12 5/ 8 A, 3 / 8 B 47 11 3/ 4 A, 1 / 4 B 37.5 9 Three-breed composite 1/ 2 A, 1 / 4 B, 1 / 4 C 61.5 15 Four-breed composite 1/ 4 A, 1 / 4 B, 1 / 4 C, 1 / 4 D 75 18 1/ 2 A, 1 / 4 B, 1 / 8 C, 1 / 8 D 66 15 Source: Gregory and Cundiff, Journal of Animal Science. Composite benefits Various breed crosses differ in the maximum individual heterosis percentage and likely calf weight weaned per cow exposed (see Table 1). Although retained heterosis is higher in a rotational crossbreeding programme, composite breeding maintains a proportion of heterosis but produces a more uniform and marketable final product, using fewer separate herds. Composite breeding brings results and versatility Farm information Farmer Roger, Margaret and Tony Geddes Location Holbrook, NSW Property size 1400ha Enterprise Beef cattle, wool, cereals Annual rainfall 700mm The Geddes family, Holbrook, New South Wales, is using the benefits of hybrid vigour and earning high returns from their composite breed cattle. The family is achieving consistently higher weaner weights for composite cattle than previously gained for purebreds. Composite calves born during 2001 averaged 325 kilograms at weaning, with a top weight of 430kg. During the 1970s, the Geddes family was running a breeding herd of large-framed, purebred Angus. Demand for these cattle was not high at the time as they did not finish well on the farm s pastures. As a result, the Geddes started a self-replacing crossbreeding programme by breeding Simmental bulls with Angus cows. Poll Hereford, Simmental and Red Angus bulls were then used over the resulting firstcross females to breed more moderately framed cattle. But the progeny type still varied significantly, so during 1999 the Geddes started using composite bulls to breed more uniform calves. Marketing the cattle The cattle are marketed through an agent who knows the type of cattle well. Steers are either grown out on the property for sale to abattoirs or sold to feedlots when cattle reach specifications at 15 18 months. Some of the initial crossbred steers with stronger Simmental characteristics took longer to fatten than purebreds but they still achieved adequate returns. Under a composite breeding programme, the Geddes have found it is easier to take advantage of hybrid vigour without producing a wide range of progeny types. Most heifers are kept as replacements, with only a small percentage being grown out and sold. The older cull cows also sell well over the hooks. The herd today The Geddes can purchase composite bulls from a local stud. These bulls have figures which compare them with other bulls Tony Geddes, Holbrook, New South Wales, is taking advantage of hybrid vigour by breeding consistently uniform composite cattle with excellent growth potential. within the stud herd but at this stage these figures only can be used as an indication and not to compare bulls between studs. The lack of composite bull estimated breeding values is the main factor limiting the success of the composite programme, as it currently does not allow the Geddes to select bulls for traits such as low birthweight and high calving ease accurately. The Geddes have found there is now wider industry acceptance of mixed-breed cattle. They believe this is due to an increasingly competitive market, with processors starting to concentrate on the carcass characteristics of cattle rather than being influenced by the colour of their hide. 67

Composite cattle Heterosis boosts economic traits Farm information Farmer Peter Howarth Location Wombramurra, Nundle, NSW Property size 9310ha (Nundle) 3441ha (Quirindi, NSW) Enterprise Beef cattle Annual rainfall 625 875mm By using heterosis to improve the performance of his cattle, Peter Howarth, Nundle, New South Wales, has increased profits by about 20 per cent. Compared with his original purebred herds, Peter has increased fertility, milk production, growth, weights, survivability and reduced calf mortality by breeding composite cattle. For example, the Wombramurra composite s average weaning weight when compared with the straight Angus and Devon herds increased from 264 kilograms to 309kg. He also can correct herd weaknesses faster and has the flexibility to meet changing market requirements quickly. Mixing the breeds Although his properties originally comprised of Devon herds, Peter was not committed to it and was keen to breed the most profitable cattle possible. He was motivated by the success of the chicken and pork industries in using composite breeds to refine their product and maximise production. He started a composite breeding programme during 1994, aiming for sufficient flexibility to target and supply the domestic, hotel and restaurant, European Union and Japanese oxen feeder steer markets. The breed mix selected was one-quarter European (Simmental) and the balance was eight half or one-quarter British breeds (Devon and Angus) and one-quarter of another British breed (Angus). The main traits targeted were birth weight, calving ease, milking ability, growth rate, weight, maturity pattern, polledness and solid red and black cattle. The programme also required a self-replacing herd, so a breed offering good maternal traits (Simmental) was chosen over other European breeds. Breeding programme To achieve a composite of one-quarter Simmental and half or one-quarter Devon and half or one-quarter Angus, the enterprise needed Angus, Devon, Angus Simmental and Simmental Devon sires. Although Devon bulls were readily available through the existing breeding programme, Peter regularly bought high-performance Angus and Devon bulls to use the best genetics available. The first-cross bulls were bred using artificial insemination and the existing herds. The breeding programme was: Angus Simmental bulls over Devon Angus cows. Angus Simmental bulls over Devon cows. Angus bulls over Simmental Devon cows. Simmental Devon bulls over Angus cows. Devon bulls over Simmental Angus cows. The final mix During 1996 the breeding programme reached the stage where composites could be joined to composites. The current breeding herd of 3000 cows will be increased gradually to 4000 by 2003, providing the large genetic base necessary to minimise inbreeding. Rather than separating the half and one-quarter Angus and Devon composites into two groups to retain these exact percentages, Peter realised there was no disadvantage in separating them into red and black colour groups for easier marketing. The progeny retained the one-quarter Simmental component and the desired 67 75 per cent perpetuating heterosis. The composite will now move toward being three-eighths Devon and three-eighths Angus. Peter maintains a flexible programme and will use other breeds if they possess traits beneficial to the breeding environment and target markets. For example, he recently bought 100 Limousin, Shorthorn and Angus composite heifers and plans to buy onequarter European three-quarters British breed bulls to introduce any traits required. He sells the surplus composite progeny through the Objective Marketing Group. Most cattle are sold as feeder steers to processors at 450 650 kilograms. During 2002, Peter will install centre-pivot irrigation over 485hectares, to increase annual production for feeder steer markets to 5000 head or 100 carcasses a week. Peter Howarth, Nundle, New South Wales, maintains a constant bull type in his composite breeding programme but will change the breeds as long as they possess beneficial traits. 68

Heterosis usually gives a significant boost to traits that are not highly heritable such as fertility and survival. These traits would take longer to improve using within-breed selection. Other effects of heterosis include better conception rates, higher calving percentages, better calf survival and heavier weaning weight. But there is little heterosis for carcass traits, so these need to be gained by a suitable choice of initial breed and known high-performance sires. Managing a composite herd If a producer is buying composite bulls rather than breeding them, the herd can be managed similarly to a purebred herd with all the benefits of crossbreeding without having to keep joining groups separately and buying replacement females. High-quality composite bulls are becoming increasingly available in Australia and are usually significantly cheaper than purebreds. It may be more demanding for producers to breed their own composite cattle but genetic gains can be made rapidly and the producer is in total control of the extent and direction of genetic improvement. Heterosis will boost progeny performance while the composite is being stabilised and there is the potential to breed and TABLE 2 Four-breed composites suitable for various markets and environments Market Environment example Temperate Tropical Temperate Tropical Short fed 1/ 4 European (milk) 1/ 4 Bos indicus Gelbvieh Brahman 1/ 4 European (milk) 1/ 4 Sanga Simmental Tuli 1/ 4 British 1/ 4 British Hereford Hereford 1/ 4 British 1/ 4 European Murray Grey Gelbvieh Medium fed 1/ 4 European (milk) Simmental Brahman 1/ 4 British Shorthorn Charolais 1/ 4 British Angus Shorthorn 1/ 4 British South Devon Belmont Red Long fed 1/ 4 British (marbling) Angus 1/ 4 British (marbling) Shorthorn 1/ 4 Large British South Devon 1/ 4 Specialist (marbling) Wagyu Source: Brian Sundstrom, NSW Agriculture. sell bulls if the stabilised composite is commercially successful. Open and closed herds Most composite breeds in Australia are regarded as open. is where two or more breeds are bred together and the mix is temporarily stabilised by breeding among the progeny. But new bloodlines of purebred, crossbred or composite seed stock can be introduced to alter traits as market and environment requirements change. Therefore, although the breed type proportions may remain constant (for example, 25 per cent European, 75% British), the actual breeds used may continually change to retain hybrid vigour. A closed composite breed is developed by continually selecting progeny from subsequent generations of the stabilised mix 69

Composite cattle to create a new breed with fixed proportions of the base breeds. When established, no further breeds are introduced and genetic improvements are made by selecting within the population. The Santa Gertrudis breed was formed as a closed composite by breeding between the Shorthorn and Brahman breeds. A disadvantage is that producers need at least 500 600 females and 15 20 sires per breed in the composite for genetic variation and to avoid inbreeding, for a closed composite breed. Creating a composite breed When breeding composites, consider the importance of combining complementary traits to avoid herd management problems. For example, when increasing growth rates, it may be advisable to use breeds with high levels of calving ease and high milking ability. Combining these traits will ensure growth potential is maximised but lessen the chance of calving problems in the composite. Aim to maintain hybrid vigour at acceptable levels and design a balanced, uniform breeding programme that avoids inbreeding. Traits for markets The traits emphasised during breeding will depend on the target market and the environmental conditions under which they are being bred. There is a range of target markets and environmental conditions suitable for four-breed composites (see Table 2, page 69). In these market examples, short fed refers to 70 120 days on feed, medium fed is 120 180 days on feed and long fed is more than 180 days on feed. As the herd is turning off weaners rather than vealers, less milk is required. But the cows need to show good fertility under high stocking rates. If the composite breeding programme is carried out correctly and the resulting progeny are well managed, they should have all the desired traits for the target market and consistently produce a highly profitable beast. Marketing composite cattle The development of composite beef cattle in Australia has been driven by substantial premiums being offered by feedlots for improved cattle performance and consistency at meeting carcass specifications. Many large pastoral companies in northern Australia have successfully created their own composites and these cattle are designed to perform better and produce a more uniform, marketable product in the sub-tropical environment. approach is now being used in southern Australia. It is essential that prospective composite breeders know target market specifications, including carcass weight, fat and quality requirements. These specifications will influence the breeds chosen in the composite mix. It is also useful to know the meat specifications desired by customers such as restaurants and the flexibility of these requirements. Feedlot and slaughter markets Being able to supply a range of markets will improve selling options but consider the trade-offs when trying to combine all the necessary traits into one animal. For example, high marbling cattle may have lower carcass yields. Avoid using breeds and even individual bulls with extremes in any traits. For example, extreme growth rates may lead to calving problems. Instead aim to produce lines of progeny with an even carcass performance. These can be marketed similarly to purebred cattle. Some market traits such as marbling may need to be compromised to ensure adequate breeding herd productivity, especially in areas where seasons are variable and the environment is harsh. Record keeping Most composite breeders will already keep detailed records of the composites they breed to avoid in-breeding and keep track of the various breed mixes and 70

bloodlines they use. It is essential for producers to add to these records any performance and feedback data from their own performance records and those of feedlots and other buyers. Consider monitoring cattle through to slaughter as this will allow better feedback about carcass performance and help adapt the breeding programme to changing market requirements. Breeding programmes can be quickly fine-tuned by selecting suitable composite breed bulls. Colour affects appeal Although an animal s coat colour has no influence on carcass quality, it may affect the appeal of live cattle sold through the yards. By using solid colour base breeds, the progeny colour is generally more predictable. Some breeders like to trademark their composite by breeding toward a solid stable colour. Red is the only colour that will always breed true and as a result many red breeds are used in composite breeding. Marketing breeding stock Demand for well-bred crossbred and composite bulls is growing in Australia. Most composite seedstock producers rely on their own promotional efforts to market their stock. But recently producers have gained marketing help from the Composite Beef Breeders of Australia (CBBA), which is currently the only form of a breed society for composite cattle. The CBBA was formed during 2000 as a branch of the Beef Improvement Association to increase awareness of composite breeding and improve the performance recording options for composite breeders. The group aims to produce breeding aids such as estimated breeding values (EBVs) for composite cattle. TABLE 3 Characteristics of breeds used in temperate Australia Breed Growth rate and Muscling 2 Time to Milk Group mature size 1 puberty production Jersey Very small Very light Very early Very high Longhorn Very small Moderate Moderate Low Hereford Moderate Light Moderate Low Angus Moderate Light Moderate Low Red Poll Small Light Early Moderate Devon Small Light Moderate Low Shorthorn Moderate Light Moderate Moderate Galloway Small Moderate Moderate Low South Devon Moderate Moderate Early Moderate Tarentaise Moderate Moderate Early Moderate Pinzgauer Moderate Moderate Early Moderate Brangus Moderate Light Late Low Santa Gertrudis Moderate Light Late Low Sahiwal Small Moderate Very late Moderate Brahman Large Moderate Very late Moderate Nellore Large Moderate Very late Moderate Braunvieh Large Heavy Early High Gelbvieh Large Heavy Early High Holstein Large Heavy Early Very high Simmental Very large Heavy Moderate High Maine Anjou Very large Heavy Moderate Very high Salers Very large Heavy Moderate Very high Piedmontese Moderate Very heavy Early Very low Limousin Moderate Very heavy Late Very low Charolais Very large Very heavy Late Very low Chianina Very large Very heavy Late Very low 1. Animals with a large mature size tend to grow out faster. 2. Heavily muscled animals tend to have leaner carcasses. Table 3 and Table 4 (see page 72) show general trait classifications for each breed. Some individual animals will perform better for these traits (and others worse) but breeders can use estimated breeding values (EBVs) to select superior genetics. Source: Kondinin Group (adapted from Cundiff and Gregory, 1999). 71

Composite cattle TABLE 4 Characteristics of breeds used in sub-tropical Australia Breed Temperate area Tropical area Resistance to group Growth Fertility Growth Fertility Mature Meat ticks worms eye rate rate size quality diseases Bos taurus British Fast Very high Slow Low Large Very high Very low Moderate Low European Very fast High Slow Low Very large High Very low Moderate Moderate Sanga Moderate High Moderate High Moderate Very high High Moderate Moderate Bos indicus Indian zebu Moderate Moderate High Moderate Large Moderate Very high Very high Very high African zebu Slow High Slow High Moderate High Very high High High F1 Brahman British-cross Very fast Very high High Very high Large High High High High Source: Kondinin Group, adapted from Heather Burrow, CSIRO. Breeds and their characteristics Table 3 (page 71) and Table 4 summarise research from the United States and Australia, which defines the main characteristics of beef cattle breeds and types. 72 Table 3 refers to breeds commonly used in temperate areas of Australia, while Table 4 includes breed type comparisons for tropical environments typical of northern Australia. Using the tables, breeders can chose breed TABLE 5 A comparison of three cattle breeding enterprises* Traditional purebred Japanese oxen B3 Three-breed composite Gross income $300,000 $324,000 $324,000 Net profit to sales Percentage 10% 18% 25% Amount of net income (based on gross income $300,000) $30,000 $54,000 $75,000 Average cost per bull of similar quantity $4500 $5500 $3500 Average bull working life in years 4 4 4 Total annual bull cost (at 2.5% joining rate, need 12.5 bulls/year. Total = cost per bull x 12.5 working life) $14,062 $17,188 $10,900 Net income (from above) $30,000 $54,000 $75,000 Plus bull cost advantage/year $17,188 $17,188 (compared with JapOx B3 bull $14,063 $10,900 as most expensive) $3125 $0 $6288 Net profit $33,125 $54,000 $81,288 Capital outlay $1,500,000 $1,500,000 $1,500,000 Less capital saving for cow herd (assume traditional and composite cows are $100/head less compared with cows for $50,000 $0 $50,000 breeding JapOx B3 cattle $1,450,000 $1,500,000 $1,450,000 Therefore, return on investment 2.28% 3.60% 5.61% * Each enterprise has 500 breeding cows. Assumptions: The net profit of the traditional enterprise was 10% of total sales. The JapOx B3 feeder steers earned an extra 8% net profit over the traditional enterprise as they were sold in this example for an average of $2/kg liveweight compared with $1.84/kg. The composites had a 15% advantage in net profit over the traditional purebred cattle. is based on research carried out at the Clay Centre, United States, which found a three-breed composite increased the weight of each calf weaned per cow exposed to breeding by 15%. The main traits influencing this percentage are reproduction, calf survival, maternal ability, growth rate and longevity. As these traits are not all reflected in the sale price of an animal, the gross income is kept at $324,000 rather than showing the full 15% advantage. It can be argued these figures require detailed refinement such as accounting for the longer average working life of composite bulls but this will not alter the net return on investment figures significantly. Source: Peter Howarth, Nundle, NSW. combinations to maximise the desired traits for particular markets. There are economic advantages to breeding composite cattle. Table 5 compares a traditional breeding enterprise supplying purebred cattle to feedlots for a range of markets; an enterprise specifically supplying feeder steers to the Japanese Oxen (JapOx) B3 market; and a three-breed composite enterprise supplying feedlots for a range of markets. What to consider Marketing As part of the breeding and marketing programme, consider the saleability of stock during drought, on-farm finishing options if markets change and specific requirements such as Meat Standards Australia. Breeding Include in planning the need for and where to source replacement stock and recognise breed strengths and weaknesses such as maternal traits, fertility, temperament, muscling and fatness. When buying bulls, use any Breedplan figures available. Be careful joining British breed heifers to European or Bos indicus breed bulls. Choosing breeds Too much European or dairy blood will produce large, higher maintenance cows and later finishing steers. Consider using part-european sires in some situations. Remember that lean or high milk cows may have reduced drought tolerance. Ensure the sire s temperament meets requirements. Acknowledgement: Brian Cumming, NSW Agriculture. For more information visit the CBBA web site at www.compositebeef.com.au About the author Pamela Horsley is with the Kondinin Group s research team. Email: pamelah@kondinin.com.au