Sheep More Profitable Than Cattle

Press, Volume C, Issue 29518, 20 May 1961, Page 6

Sheep More Profitable Than Cattle

RUNNING beef cattle is not as , profitable as sheep on Canterbury plainsland. That is the salient point of a paper presented to the Lincoln farmers’ conference this week by Mr Peter M. Falconer, advisory officer to the Lauriston Farm Improvement Club. Mr Falconer's observations were based on a survey of some 20 farms in Mid-Can - terbury in the seasons from 1956-57 to 1959-60. These properties covered a wide range of soil types and different cattle policies varying from wholly fattening to breeding stores and farms which did both. On all farms all the feed grown could have been used by sheep. Losing On the basis of figures for three farms in the survey which were breeding their own replacements and buying calves which were sold 10 to 14 months later as chillers. Mr Falconer showed that these farmers were reducing their net profit by £1 for every ewe equivalent that they replaced by cattle. “In other words it was costing them something like £7 a beast per annum for the satisfaction of running cattle.” he said.

Figures for five farms which ran breeding eows and sold calves over the same period showed an adjusted gross profit of only £2 for each ewe equivalent replaced by cattle. “This

means that there was a margin of over 30s a ewe in favour of fat lamb production over breeding cows on these farms,” said Mr Falconer. "It means also that the calf breeders on fattening country would have been better to fatten their steer calves than sell them as weaners during this period.” On the basis of meat production trials at Ruakura Animal Research Station and Winchmore irrigation research station and of practical experience on farms Mr Falconer contended that the accepted conversion rate of running cattle in place of sheep—one cattle beast to five sheep—was too low’, and he suggested instead that to determine the number of chillers they could fatten farmers should divide ewe numbers by seven and if they were considering running a breeding cow herd they should divide by 7.5 to 8. Where chillers were being run in lieu of sheep Mr Falconer has calculated that there is a saving of about 10s a ewe equivalent replaced in annual expenditure and 7s 6d a ewe where breeding cows are run.

The main saving is in labour. The total labour costs (wages, housing etc,) on Mid-Canterbury fat lamb farms amount to about .’••? a ewe, states Mr Falconer. Where cattle are run he believes that this cost is reduced to 10s a ewe equivalent on a farm fattening chillers and 12s M a ewe

where a breeding cow herd is involved.

Other savings are put at 2s 6d for shearing and crutching for each ewe equivalent replaced and 2s for stock expenses (woolpacks, drench, dip, inoculation. footrot control etc). On the other hand there is extra expenditure in carrying cattle in the form of 2s 5d a ewe equivalent replaced for fencing, 7d for cattle yards and is 3d for extra hay. Three Farms On the three farms already mentioned where farmers were breeding their own replacements and buying calves which were sold as chillers 10 to 14 months later Mr Falconer found that over four years the average gross profit per beast from beef was £lB giving a return of £2.6 a ewe replaced by the cattle. The average gross profit from sheep and wool a ewe equivalent was £4.1 and after taking account of the extra costs involved In running sheep as compared with cattle this figure was reduced to £3.6 leaving an advantage of £1 a ewe equivalent in favour of sheepfarming. While farm records for the present season are not complete yet, Mr Falconer makes an estimate that even with calves selling to more than £3O the fat lamb farm with a gross return of £3 St a ewe equivalent it still

narrowly heading off the breeding proposition with calves for sale at £3 3s and the chiller fattening enterprise at £3 Is. How far does ltaib and wool have to drop to make these cattle policies truly profitable? Mr Falconer sums up this line of thought in saying that “If good steer calves are going to sell for £25 for the next few years and beef remains at £7 per 1001 b for chiller grade, lamb can drop to 15d and wool to under 30d per lb before it will pay farmers to produce beef in place of lamb. Similarly if prices such as 17d for lamb, 3s for wool and 130 s for chiller beef are the rule, you will need to purchase calves at about £l7 10s and if you are breeding, sell them at £3O, to run cattle profitably. Mr Falconer gays that cattle can be most useful but are usually a temporary expedient in easing labour difficulties. Contrary to what is often heard, he said that two farms he had visited

with the highest cattle to sheep ratios also had the poorest stock health. “This is a free country and I sincerely hope that many people will be able to continue running cattie for the reason that they like it.” he said. “Without further falls in the prices we receive for sheep products, it seems that this is the only sound reason for running cattle in significant numbers on Canterbury plai&slaad farm*." <