Beef Profit Partnership

Primary funder

Meat & Wool NZ Time frame of Project A 3-year project which completed in June 2009

Consultants Involved

Bob Thomson (a sister project was implemented with Peter Andrew from AgFirst Gisborne)

Project Brief

A farmer group was established to review and consider implementation of Australian research reported from CRC. This research was largely associated with addressing beef quality issues and opportunities. Northland farmers wanted to address the opportunities for increasing price per kilogram for beef (quality) and not increased beef production per hectare (quantity). The rationale was that most in the group had already reached the environmental and social limits of production on their farms. It was also reasoned that the Monitor Farm program already provided an effective forum through which beef production could be addressed. The project was to have returned a 5% increase per annum in farm profit.

Description of Project

In the absence of a beef marketing opportunity at the time of implementation, the group decided to explore and characterise the cost of capability for supplying beef to a discerning and high reward market. It was assumed that a high level of beef quality would be required and that supply would be year round. Research results from Australia (CRC), NZ and USA were utilised to determine the parameters and requirements for the supply capability. Farmax was used to model the biology of the farm systems.

Outcomes from Project

The cost of capability was determined for out of season supply and high level QA based on sustainable farming systems. The practical ability to supply to a discerning market was explored and the group determined that it was within their capability. Although the project completed with a Conference in June 2009 and 120 people attended with 80 farmers standing in support of the initiative to strive for increased prices for beef Most of the BPP farmers are now part of a commercial producer group focussed on a beef value chain supply capability and will realise returns well in excess of prevailing beef schedules The goal for the Beef Profit Partnership (BPP) farmers was to realise a 5% annual increase in farm profit. The Northland BPP project was a precursor to farmers establishing a producer group and now realistically anticipating returns well in excess of the project goal. The project is therefore deemed to have been a great success.