How CPC halved the age of the cattle it turns off and why Wagyu is involved

Underpinning those production goals has been the constant pursuit of eating quality.

The high-fertility, high-marbling Wagyu breed has played a key role in CPC's journey, something that the longstanding Brahman breeding operation possibly did not foresee.

CPC, one of the country's largest privately-owned cattle producers, has reduced the average age of cattle it is turning off from 4.2 years to 2 years, including cull cows; lifted live weight kilograms produced per hectare by 74pc and per head by 21pc and increased brandings from 51 to 82pc in ten years.

CPC also has majority ownership of two Indonesian feedlots and has been feeding both composite and Wagyu-content cattle in short and medium programs with some good results.

Chief executive officer Troy Setter provided a rundown of the company's breeding journey and thoughts on crossbred live export animals at the 2024 Wagyu Edge Conference in Cairns.

Owned by Guy and Julia Hands, CPC runs around 300,000 head of cattle in Australia on 3.5 million hectares over nine properties, most of them in high rainfall far northern regions.

The northern stations supply the live export market with central Queensland stations supplying boxed beef and feedlot markets.

Ten years ago, the focus from the industry and CPC's Brahman herd was kilograms via big carcases and CPC was strong on terminal Charolais and terminal Angus, Mr Setter said.

"Our lower branding rates and genetic gain slower than CPI forced a breeding strategy overhaul," he said.

"The Northern Beef Situation analysis showed the top 25pc of northern producers had a profit ten times the average northern cattle producer and we wanted to be in that top 25pc.

"The two key drivers of northern profitability are herd productivity and lower operating expenses so that's where we went looking."

Mr Setter said the relationship between joining weight and pregnancy percentage in maiden heifers in northern Australia was straightforward but it was leading to people going for heavier, later maturing heifers and that was making them older.

What CPC has established is that it's not about breeding heavier heifers but rather finding the ones that get pregnant younger and at a lighter weight.

"Rebreeding of first-time calvers was also poor - most of our heifers weren't getting in calf until three years of age, and then missing a calf," he said.

"We ran numbers and heifers that calve older than two years of age do not make you any money until their second or even third calf."

The net profit of a three-year-old first calf was negative $205 and positive $30 for a two-year-old first calf heifer.

"We were also aware that the cost of culling a cow in our northern herd that did not give us a calf was about $285 and we knew we had to break that," Mr Setter said.

"Targeting fertility over weight gain in Northern Australia delivers higher revenue in the longer term.

"But we wanted both. We wanted our steers to grow to their target market weights faster and to move off the properties quicker.

"And we also wanted IMF (intramuscular fat) because we knew there were positive benefits for breeder fertility and we were convinced eating quality is where our markets were heading."

CPC went with a composite of four breeds in a unique criss-cross breeding program.

Brahmans remained the base for their tropical adaptation and ability to walk long distances and handle droughts.

Borans, sourced from Kenya, were introduced for high fertility, early maturing and mothering but with similar survivability traits to the Brahmans.

Angus were brought in for more fertility, fast young growth, predictable performance and because they are dominate for the polled gene.

Then came the Wagyu, with its high fertility, early puberty, very good teat and udder structure and marbling.

"We also put in some Northern Territory Department of Primary Industry composite genetics with Belmont Reds, Shorthorn and Silver Angus," Mr Setter said.

Today, two thirds of the 5000 CPC Angus cow herd are joined to Wagyu bulls and the composites are crossed four ways.

Fertility is the most valuable trait that Wagyu can give northern Australian cattle production, Mr Setter believes.

"Toughness is the second most valuable trait and that includes the ability to work all year round," he said.

What is important: slick coated skin and eyes that are fly resistant, correct structure and the understanding that horns cost valuable weight and have detrimental welfare outcomes.

From a total of 21,000 cows, the composite cows with Wagyu content had a 7pc higher pregnancy rate than the purebred cows, Mr Setter said.

From 3000 yearling heifers, the composite heifers with Wagyu had 23pc higher pregnancy rates than the composites without Wagyu.

Wagyu-cross bulls hit puberty earlier and pass semen tests with lighter body condition than other composites.

"For CPC's composite program it was not just about getting any available Wagyu and Angus bulls and putting them out to breed," Mr Setter said.

"They had to come from herds with proven fertility, be early maturing, have fast young growth, moderate mature cow weight, slick coats, the right phenotype, polled and be backed with solid data."

CPC's two Indonesian feedlots can turn over 90,000 head a year; although market conditions at the moment mean this year it will likely be 70,000.

Wagyu-Brahman crosses and composites have now been put through 100 and 120 day short-fed programs, along with some mid-fed 190 day programs.

In the mid-fed program, average daily gains were solid, at 1.56kgs, but backed off in the last 100 days, Mr Setter said.

Marble scores were 4-5. Health was outstanding and cost of gain $2.30/kg.

Composite cattle in CPC feedlots made $36 a head more than pure Brahman cattle in 2022.

The big challenge, Mr Setter said, was finding a market for the entire carcass.

"Loin cuts are popular but the rest of the carcase is wanted lean," he said.

"So we haven't done much more of this for that reason."