Background information on beef gross margin budgets
Beef production in NSW is carried out in a wide range of environments from high-rainfall coastal country to arid country in the west. There is a range of production systems that producers have developed to meet particular markets. The budgets provided represent the more common production systems available in NSW. They are for theoretical herds of 100 cows or, in the case of growing out enterprises, 100 steers. Assumptions are made regarding weaning percentages, death rates and growth rates to determine sale numbers and costs. The budgets presented are achievable by most genuine beef producers, given good management practices and sufficient planning.
The aim of these budgets is to provide producers with an additional planning tool to help evaluate options. The budgets presented are meant to be a projection of price expectations in the near future, rather than a statement of the recent past. As we all know, it is extremely difficult to accurately predict future prices, growth rates and feeding costs, to name a few of the variables. However, by using the best available information, it is still better to evaluate your options by making your own projections and combining them into a business plan for your property. These budgets will help you in developing your own budgets.
