Exploring the Opinions of Irish Beef Farmers Regarding Dairy Beef Integration

Abstract

Background: There has been very little previous research in Ireland on the opinions of farmers regarding dairy beef integration. The need for increased dairy beef integration has assumed a greater importance in Ireland in recent years due to a rapid expansion in dairy production, and associated increase in numbers of male dairy calves born on Irish farms. The objective of this study was to explore beef farmers' views on a broad range of issues related to dairy beef integration, using a survey methodology. The survey was distributed to approximately 4,250 beef farmers via email and 1,203 participated in the study.Results: The sample was composed almost entirely of beef farmers, although a very small proportion also had a dairy enterprise on their farm. Eighty percent of the farmers were concerned with the increase in the number of male dairy calves in recent years. Fifty seven percent of farmers responded that they were not willing to rear dairy bred calves for beef. Limousin, Aberdeen Angus and Hereford were the breeds farmers would be most willing to rear for beef. Good health, breed, and conformation were ranked as the main factors calf rearers consider when buying calves. Expectation of poor profit margin, expectation of poor-quality calves, and price volatility/market uncertainty were the top ranked factors dissuading farmers from rearing dairy calves for beef. The main themes arising from the qualitative question related to beef price/ability to make a profit, breed, and calf quality.Conclusions: While it is concerning that the majority of respondents expressed an unwillingness to rear dairy bred calves for beef, approximately a quarter of beef farmers indicated a willingness to rear beef-sired dairy calves for beef. In the qualitative responses, farmers described how their concerns about calf quality and their ability to make a profit from dairy bred calves would make it difficult for them to rear these calves for beef. Future strategy will have to consider how these challenges can be overcome and the issues of who bears the risks and costs associated with greater integration will have to be carefully considered.

Barriers to Utilizing Non-replacement Male Calves in the Australian Dairy Industry: A Qualitative Study

“…Within these themes poor profit margins influenced many management choices made by dairy producers; this finding was similar to those observed in other studies internationally where producer concerns for a dairy beef supply chain lay within poor supply chain integration and lack of viable profit margins (8,24). Dairy beef, through slaughter of cull cows as well as nonreplacement calf production accounts for a small, but financially meaningful percentage of a dairy producers income, estimated in the U.S. to be between 5 and 15% of gross income, yet the product from these animals is often not identifiable to the consumer, and attracts downgrading for the producer (25,26).…”

“…Participants in our study reported that they would improve the conditions for rearing of non-replacement male calves if finance was not a potential barrier. This was similarly reported in a cohort of Irish producers where changes or improvement on farm to support a successful dairy beef integration system was the preferred option if finance was not a limiting factor (24). If grants and a more secure pricing structure was available for the sale of non-replacement male calves it could assist producers to invest in improved calf-rearing infrastructure and encourage them to put higher inputs into calf feeding protocols similar to those conditions described by participants for retained heifer calves.…”

“…One potential strategy to support development of an integrated supply chain for dairy beef has been reported by Irish producers when considering resourcing requirements, where grants from government bodies have been used to provide necessary additional infrastructure. This model could aid in preventing euthanasia of nonreplacement male calves help to deliver the desired outcomes of the Australian Dairy Sustainability Framework toward reduction of euthanasia of non-replacement calves (24,29).…”

“…This assisted in giving these producers an economically viable route to market for these animals as oppose to participants who were waiting to see if market conditions improved to increased calf sale profit margins. Irish producers had concerns regarding price volatility and market uncertainty surrounding non-replacement male calves (24), so this represents a common challenge. By utilizing precontracted sales for non-replacement male calves, our study shows that this can support a pricing model that guarantees profitability and therefore mitigate risk for the dairy producer.…”

“…By utilizing precontracted sales for non-replacement male calves, our study shows that this can support a pricing model that guarantees profitability and therefore mitigate risk for the dairy producer. This was also a favored option by Irish producers who preferred to send calves to a rearing facility with pre-contracted prices or retain ownership of calves of those calves in the rearing facility with a pre-contracted price negotiated prior to slaughter (24). This model could allow dairy producers at a national and international level to accommodate the extra labor requirements, facility usage, and grazing land capacity to support rearing of non-replacement animals, allowing more investment into the primary focus of their dairy production whilst supporting an integrated dairy beef supply chain.…”