HGPs in grassfed beef lifts as producers chase kilos over niche markets

Northern beef producers have reported a return-on-investment of 10:1 on HGP implants in cattle on grass, which has delivered as much as $100 extra per head in the past year.

Trials on the leading HGP for the grassfed business, Elanco's Compudose 400, an oestrogen-only product that pays out for the entire year between northern musters, show an average 15.8 per cent weight gain advantage compared to non-implanted cattle.

Sales of grassfed implants have skyrocketed in recent years, with last year seeing an increase of 16pc on 2021 and 53pc compared to the same period in 2020, according to data from Baron Strategic Services.

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Elanco' account manager for northern Queensland and the Northern Territory Bruce Smith said a lot of northern Australian beef producers were finding the premiums for HGP-free cattle were not always guaranteed and highly variable.

In any case, they need to be significant to offset the productivity benefits of using implants.

"The feedback is that the liveweight gain advantage you achieve from Compudose delivers higher returns than implant-free cattle, even when market premiums are considered," Mr Smith said.

While Queensland had largely driven the uplift in the grassfed implant market, sales had increased right across the north and down into NSW and parts of Victoria, he said.

The majority of grainfed cattle and at least 20pc of all grassfed cattle in northern Australia are implanted at some stage of their lives, beef consultants have estimated.

Oestrogen-only implants, inserted in the middle third of the back of the ear, are suited for use during the growing phase in grassfed cattle, and combination implants containing both oestrogen and trenbolone acetate, are generally targeted at the finishing of cattle in feedlots.

Elanco has sold HGPs on the Australian market for nearly 40 years and Mr Smith said while the combination implant category was performing strongly, the grassfed implants were seeing a greater uplift off the back of the favourable seasonal and market conditions.

Technical consultant Craig Stevenson explained the oestrogen-only implant stimulates the animal's pituitary gland to produce more of its own natural growth hormones, increasing satellite cell proliferation, amino acid uptake and protein deposition.

It is different to the combination implants that also contain trenbolone acetate, which acts directly on the muscle tissue leading to an accumulation of protein and also reduces muscle breakdown.

With oestrogenic-only implants, animals are growing but the HGP is not directly working on the muscle, he said.

Cattle treated with combination implants generally produce leaner carcasses than those treated with oestrogenic-only implants. The use of combination implants can also reduce the marbling score, particularly if implanted during the early stages of growth.

Conversely, oestrogenic-only implants have minimal impact on carcass fatness or marbling score, regardless of the length of payout or re-implantation after the payout period has expired.

So oestrogenic-only is an ideal option for producers looking to increase growth rates and improve feed efficiency while maintaining high-quality meat, Mr Stevenson said.

Mr Smith said beef producers using Compudose had access to most major export and domestic markets for Australian boxed beef, including Meat Standards Australia-graded markets.

"In fact, 35pc of all carcasses achieving MSA grades from 2019 to 2021 were implanted cattle and of these, 16pc were grassfed," he said.

However, both Mr Smith and Mr Stevenson recommended that anyone considering using HGPs speak with their livestock agent, feedlot or processor about market specifications before commencing an implant program.

HGPs are sold under a controlled supply system in Australia, which means they need to be purchased from an authorised store and the producer will need to sign a HGP Purchaser Declaration Form at the point of purchase.

All animals treated must be recorded, permanently identified as HGP-treated with a triangular ear punch and be declared as HGP-treated on national vendor declarations when sold.