An Introduction to Backgrounding:
Backgrounding is based on weight gain performance. A flat rate per kilo gained by the animal is paid. This is calculated at the final weighing of each animal prior to departure. Weight sheets are provided after each periodic weighing showing individual animal performances and an overall group average.
The heifers are delivered on-farm, and on most occasions all inductions will have been carried out prior to their arrival (ie. tagging, vaccinations, drenches).
It is more beneficial if heifers are taken on for the long term to maximise and balance weight gain averages.
During dry seasonal conditions (ie. Low season, Winter months, drought, etc), provision has been made within the Agreement for backgrounders to supplement feed heifers. This is paid to the backgrounder on a pro-rated scale according to the cost of feed commodities at the time. To promote weight gains and to balance changes in the quality and quality of pasture this provision assists backgrounders to economically maintain animal weight gains.
The role of Heifer Management Services is to co-ordinate and implement the distribution of livestock on a weight gain basis and to mediate between the owners of the livestock and the backgrounders. We believe that good communication channels are vital for the success of backgrounding livestock.
Backgrounding provides farmers with the option to diversify enterprises on-farm allowing the opportunity to invest the capital cost of owning livestock in other market areas. This can be a risk management option with monthly cashflow and the opportunity for good returns without market fluctuations seen within the beef industry.
