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- Francois Smit is one of the producers who has been trying to convince feedlots that discriminating against Boran weaners is not doing anyone any good.
- He developed a system that allows him to realise and retain the profit that would have gone to a feedlot.
- Francois was able to retain two calves in the place of each cull cow without any capital outlay.
- He introduced an ultra-high-density or UHD grazing system.
- This system produces excellent slaughter animals that meet market requirements.
The Boran’s ability to deposit fat quickly during finishing has become a thorn in the side of feedlots, but not so for farm feedlots that put this trait to good work – for them it can be one of the most important drivers in maximising the sustainability and profitability of beef cattle production.
Francois Smit of the Fonteine Boran stud near Derby in North West is one of the producers who has been trying to convince feedlots that discriminating against Boran weaners is not doing anyone any good. To counter this problem, he developed a system that allows him to realise and retain the profit that would have gone to a feedlot.
Francois, a chartered accountant, and his wife, René, started farming alongside his father-in-law, Isak van Zyl, in 1996. Isak was responsible for the dairy and Francois the crop division. Unfortunately, the pair farmed together for only seven years before Isak passed away.
Today, Francois and his sons, Franco (and his wife Melizé), Christiaan, and Van Zyl (part-time) run a crop farm, the Fonteine Boran stud (comprising 500 breeding cows), as well as a commercial herd of 1 000 cows that have been bred to Boran bulls to achieve almost pure Boran cattle over the years.
Some misconceptions
The cattle industry is one that holds fast to its opinions, says Francois. Many believe the Boran and other indigenous beef cattle breeds to be unsuitable for the feedlot industry because the Boran is deemed to deposit fat too quickly, before reaching the target weight. However, the ability to regain condition following difficult feeding conditions, and to do so quickly, becomes the most important trait to a producer who selects for adaptability, fertility, low maintenance, or animals suitable for higher stocking rates in a high-density grazing system.
“This is the trait your beef cattle herd must possess if you want to produce beef sustainably and economically from the veld. Yet this is also the trait feedlots discriminate against.” Feeding a calf a high-energy ration for 120 to 150 days means that rapidly putting on fat will not be considered a positive trait. Hence, what is considered a highly desirable trait at farm level is a negative point for a feedlot.
Is bigger better?
There are also claims that the Boran is too small. From Francois’ experience most abattoirs are satisfied with a carcass weighing 200 to 250kg (the ideal being 220 to 260kg). The dressing percentage of his Boran calves averages 231kg, which is in line with what the industry requires. Of these, 87% were graded A2 and the rest AB2.
Another belief is that Boran cattle’s individual performance does not match that of other composite breeds. “The fact is that individual animal performance is irrelevant when it comes to production/ha. At farm level, grazing is usually the limiting factor, not the number of animals.”
The yield/ha must therefore outweigh the weaning weight per calf (weaning weight per calf is indirectly correlated with meat yield/ha). The higher the stocking density/ha, the lower the average weaning weight will be, but the kg produced/ha will continue to increase until it reaches the optimum level.
An encompassing study by the Intelact benchmarking study group revealed some interesting figures: the difference between the average weaning weights per cow in the herds of the study group as a whole and the top 10% (based on profitability and return on capital) is only 8kg; however, the difference in kg/ha ranges from an average of 32 to 116kg/ha produced by the top 10% participating producers.
Some feel that producers must farm a breed that feedlots deem acceptable. However, because some feedlots discriminate against the Boran and other indigenous breeds, they offer a lower price/kg. It is precisely this price discrimination that forced Francois and several other producers to consider alternative ways of marketing their livestock.
Low production costs
Firstly, it doesn’t cost as much to produce a Boran and, because of the breed’s ability to adapt to difficult conditions, it will often excel in areas where others will not. The high demand for Boran cows and Boran cross cows means that in-calf heifers can realise an excellent premium when marketed. These heifers make up approximately 50% of a cattle farm’s growth and a premium price compensates for the lower prices paid for bull calves. However, first prize is finishing and slaughtering your own bull calves.
They realise an additional R1 570/head net profit by growing out their bull calves on the veld and finishing them in the feedlot. Weaner calves are transferred into the system at the prevailing weaner calf price – this includes all production costs. Although their weaners fetch market-related prices, a R5/kg penalty would mean making an extra R950/head profit in regions where you will get less for your calf by backgrounding and finishing it yourself for the feedlot.
The view exists that feedlot involvement is a requirement to be sustainable. Francois has a different opinion. When he decided to change his system, he also resolved to remain part of the value chain for as long as possible, thus increasing the cattle enterprise’s resilience to withstand rapidly changing market conditions and fluctuating production conditions.
According to the Intelact benchmarking group, the top 10% of producers generate almost R1 000/large stock unit (LSU) (450kg) more profit than the group average, by remaining part of the value chain for longer.
Advice from a master
Francois took the words of world-renowned geneticist, the late Dr Michael Bradfield, to heart when he decided to change his system. When it comes to a beef cattle farming enterprise, said Dr Bradfield, stocking rate is eight times more important than fertility, fertility is four times more important than growth, and growth is twice as important as carcass traits.
As a starting point, Francois sold around 20% of the cows that failed to wean a calf that year and retained all the weaners. He was able to retain two calves in the place of each cull cow without any capital outlay. At the same time, he introduced an ultra-high-density or UHD grazing system, cultivated pastures, and planted cover crops in the fields where crops were harvested; all of which almost doubled the carrying capacity of the pasture to 1,6ha/LSU.
There are two breeding seasons on the farm aimed at better utilising superior bulls. Calves are weaned at the age of eight months after which they go to the veld where they receive an affordable backgrounding ration. Animals destined for the herd and replacement heifers are selected at two years of age; the rest are finished in the farm feedlot for 35 to 45 days before being slaughtered.
Satisfying the market
This system produces excellent slaughter animals that meet market requirements. Carcasses weigh around 220 to 250kg and are mostly A2-grade. Although producers are not yet compensated for carcass traits and meat quality, Boran carcasses produced in this system have a very even and attractive fat cover. Boran and Boran cross carcasses have even won several carcass competitions over the past few years.
“Every producer should become involved in study groups and groups such as Intelact as this will allow you to align your own perceptions with the facts. Your profitability does not have to depend on third parties. Take ownership of your farming endeavours and investigate alternative production systems,” says Francois. – Andries Gouws, Stockfarm
For more information, contact Francois Smit on 083 273 8332 or email francois@fonteineboran.co.za.
