The Rise of the Lot Feeding sector Jen Peart, Northern Development Officer
The Australian lot feeding sector has undergone considerable expansion in recent years, with notable feed yards around the country increasing capacity. The Australian Lot Feeders’ Association recently reported more than 1.1 million head on feed for the September 2021 quarter, representing the 15th consecutive quarter (2018 onwards) of more than 1 million head on feed and illustrating the more prominent role lot feeding now plays in the Australian production environment. Driven by dry conditions across the eastern seaboard, a contraction in national herd size and buoyed by the international market, an increasing proportion of Australia’s beef production is grain fed. In the 2000’s, lot feeding accounted for an average of 29% of Australian adult slaughter cattle while in more recent years, this ratio has climbed to as high as 40% (ABS, ALFA, MLA). Unsurprisingly, the number of producers targeting the feeder market is considerable. In a producer survey conducted in 2019 and reported in detail in Angus Australia’s Australian Beef Breeding Insights report, 31% of producers nominated the feeder market as their target market. These producers managed roughly a quarter of the Australian breeding herd (3 million head). Of those targeting the lot feeding market, 70% utilise the Angus breed in their breeding operation – equating to 2.1 million females, half of which are straight bred Angus. These estimates go a long way to illustrate the influence that any improvements in genetic technology for Australian Angus cattle can have on production in lot feeding. Selection for traits such as growth (200, 400 and 600 day growth), feed efficiency (Net Feed Intake) and carcase quantity and quality (carcase weight, rib & rump fat, eye muscle area and intramuscular fat) are key considerations when breeding for the feeder market. The recently enhanced selection indexes have been developed with key target markets in mind, including the feeder market. The heavy grain indexes ($GN and $GN-L) have been specifically formulated to estimate the genetic difference in net profitability between animals when breeding for performance in long fed scenarios. In both heavy grain indexes, there is a focus on improving growth, carcase, calving ease and fertility traits as it is assumed that replacement heifers are retained.
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The key difference is the increased emphasis on mature cow weight in the $GN index, whereas this emphasis is given to calving ease and fertility in the $GN-L index. The Angus Breeding Index ($A), Angus Breeding Low Feed Cost Index ($A-L), Domestic Index ($D), Domestic Low Feed Cost Index ($D-L) and Angus Terminal Sire Index ($T) also include trait components that improve overall net profitability in grain finishing beef production systems. For example, the Domestic Indexes cater to either grass fed, grain assisted or short fed (50-70 days) finishing scenarios. Selection indexes are a key tool for identifying animals suitable to specific production systems and target markets however it is important to consider individual traits relevant to your operation. In addition to the importance placed on production traits to cater for performance in the lot feeding sector, Angus Australia is considering other traits that will have impact in the feedlot environment. ImmuneDEX is one such trait, designed as a resilience trait to improve animal health and welfare. The ImmuneDEX research breeding value provides an estimate of genetic differences between animals for overall immune competence by measuring an animal’s ability to mount an immune response when challenged. ImmuneDEX is moderately heritable and negatively correlated with some production traits such as carcase weight and eye muscle area, while being favourably correlated with the stress and temperament related traits. During trials in the Angus Sire Benchmarking Program, animals with superior immune competence phenotypes had significantly fewer health-related mortalities and incurred substantially lower health related costs during feedlot finishing. This represents significant opportunity to incorporate genetic selection as an effective means to prevent or mitigate the impact of diseases in lot feeding scenarios such as Bovine Respiratory Disease (BRD). BRD is a major cost to the lot feeding industry from several different aspects, such as cost of prevention, loss of production, mortality and cost of treatment. Other RBVs, such as Coat Type, which allows producers to leverage the genetic difference between animals and breed progeny with slicker coats, may also be of benefit to the feedlot industry due to its implications with heat resilience and dagging. Given the growth of the feedlot sector and the appetite of lot feeders for consignments of Angus cattle, Angus breeders are in the unique position to breed a high performing article with the sector in mind. By utilising the breeding values, selection indexes and research available, genetic gains can be made in performance traits key to the feed yard all while retaining vital on-farm performance attributes such as calving ease, fertility and temperament.
