Identifying high-value tactical livestock decisions on a mixed enterprise farm in a variable environment

Document Type

Article

Publication Date

5-3-2024

Journal Title

Animal Production Science

ISSN

ISSN 1836-0939 eISSN 1836-5787

Keywords

AFO, Australian Farm Optimisation Model, Discrete stochastic programming, Economic optimisation modelling, Farming systems, Sheep management, Tactical farm management, Weather variability

Disciplines

Agribusiness | Agricultural and Resource Economics | Agricultural Economics | Agricultural Science | Agronomy and Crop Sciences | Climate | Data Science | Environmental Indicators and Impact Assessment | Environmental Monitoring | Meteorology | Natural Resource Economics | Natural Resources Management and Policy | Operations and Supply Chain Management | Sheep and Goat Science | Sustainability

Abstract

Context

Australia is renowned for its climate variation, featuring years with drought and years with floods, which result in significant production and profit variability. Accordingly, to maximise profitability, dryland farming systems need to be dynamically managed in response to unfolding weather conditions.

Aims

The aim of this study is to identify and quantify optimal tactical livestock management for different weather-years.

Methods

This study employed a whole-farm optimisation model to analyse a representative mixed enterprise farm located in the Great Southern region of Western Australia. Using this model, we investigated the economic significance of five key livestock management tactics. These included timing of sheep sales, pasture-area adjustments, rotational grazing, crop grazing and sheep nutrition adjustments.

Key results

The results showed that, on the modelled dryland mixed-enterprise farm in the Great Southern region of Western Australia, short-term adjustments to the overall farm strategy in response to unfolding weather conditions increased expected profit by approximately 16%. Each tactic boosted profit by between A$7704 and A$53,171. However, we outline several complexities that farmers must consider when implementing tactics.

Conclusions

The financial gains from short-term tactical management highlighted their importance and farmers’ need to develop and apply those skills. The tactical skills promote business resilience and adaptability in the face of climate uncertainties.

Implications

The study highlighted the economic value of dynamic livestock management in response to climate variations, offering farmers in the Great Southern region the means to underpin profitable and sustainable farm practices.

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