Agent-Based Modelling to Improve Beef Production from Dairy Cattle: Young Beef Production

Approximately 42% of the total calves born in New Zealand’s dairy industry are either euthanized on farms or commercially slaughtered as so-called bobby calves within 2 weeks of age. These practices have perceived ethical issues and are considered a waste of resources because these calves could be grown on and processed for beef. Young beef cattle harvested between 8 and 12 months of age would represent a new class of beef production for New Zealand and would allow for a greater number of calves to be utilized for beef production, reducing bobby calf numbers in New Zealand. However, the acceptance of such a system in competition with existing sheep and beef cattle production systems is unknown. Therefore, the current study employed an agent-based model (ABM) developed for dairy-origin beef cattle production systems to understand price levers that might influence the acceptance of young beef production systems on sheep and beef cattle farms in New Zealand. The agents of the model were the rearer, finisher, and processor. Rearers bought in 4-days old dairy-origin calves and weaned them at approximately 100 kg live weight before selling them to finishers. Finishers managed the young beef cattle until they were between 8 and 12 months of age in contrast to 20 to 30 months for traditional beef cattle. Processing young beef cattle in existing beef production systems without any price premium only led to an additional 5% of cattle being utilized compared to the traditional beef cattle production system in New Zealand. This increased another 2% when both weaner cattle and young beef were sold at a price premium of 10%. In this scenario, Holstein Friesian young bull contributed more than 65% of total young beef cattle. Further premium prices for young beef cattle production systems increased the proportion of young beef cattle (mainly as young bull beef), however, there was a decrease in the total number of dairy-origin cattle processed, for the given feed supply, compared to the 10% premium price. Further studies are required to identify price levers and other alternative young beef production systems to increase the number of young beef cattle as well the total number of dairy-origin beef cattle for beef on sheep and beef cattle farms. Some potential options for investigation are meat quality, retailer and consumer perspectives, and whether dairy farmers may have to pay calf rearers to utilize calves with lower growth potential.