Palgrove's profitability across supply chain shines

It was at the core of the move to develop a new breed a little over a decade ago. Ultrablacks were a genetic solution for producers looking for black-hided bulls with a small percentage of Brahman content. The Angus/Brangus fixed composite retains the meat quality and fertility of the Angus breed but has heat tolerance and survivability built in from the Brangus genetics.

The Ultrablack has fast gained traction and is now arguably poised to have a significant influence on the future of Australian beef over the next decade.

Palgrove's ongoing success in one of the country's most prestigious commercial cattle competitions, the Royal Queensland Show Paddock to Palate, is paving the way.

For the fourth consecutive year, Palgrove, with properties based at Dalveen in southern Queensland and northern New South Wales, won the 100 day export class with a pen of six Charolais and Charolais/Ultrablack steers. A steer from that pen also took out the champion carcase in this class.

Another Palgrove entry, also Charolais/Ultrablacks, was placed second overall, following their win in the weight gain phase with an average daily gain of 2.773 kilograms.

Palgrove then went on to win the 100 day hormone growth promotant-free export class, for the second successive time. The Charolais/Ultrablacks were also the pen of six carcase champions in this class.

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Palgrove's Ben Noller said some of Australia's best producers participate in this competition and it provides Palgrove an invaluable opportunity to validate the commercial production focus placed on genetics.

The competition tests all aspects of performance, from feedlot to carcase to eating quality, and Palgrove's success speaks to the proven profitability of the genetics at all points of the supply chain, he said.

Leading into the bull selling season, the win gives Palgrove clients confidence they are setting up the profitability of their herds as they begin to rebuild female numbers after years of drought, he said.

Palgrove will offer 186 bulls at its annual on-property sale, on Friday, September 10.

"Bull demand has been strong for the past 12 to 18 months - everyone has feed and is looking to increase numbers," Mr Noller said.

"We are seeing unprecedented times for the cattle industry, where everything is lining up - interest rates are low, prices are at records and demand for beef is strong.

"Commercial producers are getting paid well for their cattle and this is ultimately driving the strong bull prices.

"At the same time, stud producers are rebuilding too, so there are not as many paddock bulls on the market."

Mr Noller said genetics were a key profit driver in a commercial cattle business and while the herd rebuild was happening, producers were looking to invest in bulls that would drive profitability.

"They've retained their best cattle and now it's a matter of multiplying them with high-performing genetics," Mr Noller said.

"Now is the perfect time to hit the reset button - an opportunity to really boost the quality of bulls and set individual operations, and the industry as a whole, up for long-term prosperity."

Palgrove's commercial herd includes 3000 head of cattle, with numbers increasing post drought and comprise of Charolais, Ultrablack and Angus genetics.

Steers are turned off as feeders, weaners or grown out on grass, depending on markets and seasons.

One of the key benefits of using genetics that are profitable across the spectrum is marketing diversity, Mr Noller said.

"We can sell straight off the cow into the domestic market, as feeder steers into export markets or as a finished article for grass-fed programs.

"Over the years, it's always been a split and we effectively play the market, looking for where the best dollar is.

"The right genetics allows you to hedge your bets with diverse marketing options."

At the moment, feeder steer prices are hard to go past, he said.

But Palgrove has also marketed females, both ready to join and pregnancy-tested-in-calf as demand has skyrocketed on the back of rebuilding.

Palgrove females have gone into operations from Victoria to northern Queensland.

Mr Noller said some large-scale producers had now been using Ultrablack genetics in a vertically integrated supply system for several years and were seeing benefits both in fertility and, as the Paddock to Palate highlighted, carcase quality.

"They are hitting the higher value carcase quality specs and doing it at an earlier age," he said.

"We were pleased with the marble scores of our cattle in the Paddock to Palate competition which were equal to the highest performing straight British bred cattle."

Like most producers, Palgrove's stocking levels are under capacity.

It is taking the opportunity to set up country and the herd for future drier times - storing feed, resting country and conducting long-term sustainable pasture development programs.