Economics and risks of beef on dairy

Dairy UP

Dan Armstrong – Senior Consultant at RM Consulting Group

Dairy UP’s P10 project (Sustainable pathways for non-replacement calves) is now complete.

Dan Armstrong has recently completed an analysis of the economics and risks for raising non-replacement calves in a dairy business. Market fluctuations during the study period highlighted the risks associated with variations in demand and price for dairy beef. Beef market prices were the biggest contributor to variation in net return per head.

The feedlot market (and beef market in general) is highly volatile and this has an impact on the prices paid for dairy beef calves, as the current low price situation shows. The decision to rear non-replacement calves involves significant non-financial considerations.

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About Dairy UP
Dairy UP is a collaborative research, development and extension program for the NSW dairy industry. It aims to unlock the potential of pastures, cows, water and milk to increase productivity and profitability, and de-risk the industry  and develop new markets.