Adding value by inte­grating Angus cattle into an arable rota­tion.

In mixed arable and live­stock oper­a­tions, there is a symbi­otic rela­tion­ship akin to the Romanian proverb ‘one hand washes the other’. With multiple branches to the enter­prise, risks can be balanced through mutual support. In times of declining grain prices, the value of live­stock serves to offset losses, while in instances of live­stock chal­lenges, the grain serves as a reli­able commodity for sale.

Gheo­rghe Slobozeanu, a farmer from the Giurgiu County in Romania, started working in agri­cul­ture at the age of 22, marking a signif­i­cant mile­stone in his path to matu­rity. Post-1989, during the land redis­tri­b­u­tion period, he started his farming enter­prise on 3.5ha of his parents’ land. Initially he grew maize and vegeta­bles using the contracting services of SMT due to the absence of trac­tors and machinery in the area.

“In 1996, I acquired my first U650 tractor, which was in bad condi­tion. It took me two years to refur­bish it, given the finan­cial constraints at the time.” Subse­quently, he started providing agri­cul­tural services to fellow farmers, grad­u­ally accu­mu­lating funds to buy essen­tial imple­ments like ploughs, culti­va­tors and seed drills. As agri­cul­tural lease agree­ments became preva­lent in 2000, he expanded his oper­a­tions, buying some land parcels from older landowners.

The busi­ness devel­oped grad­u­ally and in in 2007 Gheo­rghe received his first APIA subsidy, allowing him to acquire his first new tractor. “It was the first John Deere tractor in our region, which we still use today: An 80hp tractor primarily used for weeding. Later, we purchased a second John Deere tractor with 220hp, as well as addi­tional equip­ment including a plough, culti­vator, sprayer, drill, and a combine, marking signif­i­cant progress in our farm’s mech­a­ni­sa­tion.”

Back then, he managed 360ha, but the oper­a­tion has since expanded to 850ha, equipped with a fleet comprising seven trac­tors and three John Deere combines. “Green seems to run in our veins, which can be seen from our latest addi­tion – a 410hp 8RX crawler tractor purchased last year,” states the farmer proudly. With no irri­ga­tion avail­able in the region, the farm is grad­u­ally tran­si­tioning to minimum-tillage prac­tices, a shift that Gheo­rghe says has advan­tages: Fewer field passes, lower costs, and reduced soil water loss.

The farm has only purchased John Deere trac­tors since the busi­ness began.
The next gener­a­tion is already thinking about a new part of the busi­ness – meat processing.

Price fluc­tu­a­tions in the market have led to signif­i­cant chal­lenges for farmers, impacting their prof­itability. The expenses asso­ci­ated with estab­lishing and managing crops have esca­lated to 6000RON/ha (£1,017/ha), while the market price for grain has fallen to levels seen before the Russian-Ukrainian war. For instance, while maize was selling for 1300RON/t (£220/ha) in the autumn of 2022, by 2023, the price had plum­meted to 850RON/t (£144/t). Coupled with the effects of drought, agri­cul­tural oper­a­tions are increas­ingly diffi­cult. Enduring years of depressed prices has prompted farmers to diver­sify their oper­a­tions by inte­grating live­stock to de-risk their farm income.

Risk-sharing

In 2018, Gheo­rghe imported a herd of 14 Angus heifers from Germany. Since then, the herd has flour­ished through careful breeding, expanding to 180 cattle, 80 of which are suckler cows. The deci­sion was moti­vated by the declining cereal prices, prompting a strategic shift to enhance the value of crops by estab­lishing a self-suffi­cient feed system. With a dedi­cated team comprising two employees, a machinery oper­ator, and a herdsman, managing the cows has proven to be cost-effec­tive.

Cows are fed home-grown forage over the winter, and graze over the summer.

From December to June, the cattle are fed a balanced forage ration comprising maize silage, alfalfa hay, straw, and a blend of barley, wheat, and sunflower meal, providing an average of 20kg of forage per animal per day. The breeding prac­tices on the farm are conducted natu­rally, using licensed bulls, allowing the animals ample space for free-ranging activ­i­ties, and ensuring the 80 cows calve early in the season. To date, approx­i­mately 50 animals are sold annu­ally, at a satis­fac­tory price.

Heifers are typi­cally weaned at seven months of age and bulls at nine months. In this time, weight gains range from 0.8kg to 1.5kg per day, reaching 400-450kg before Gheo­rghe sells them, which yields him a better return than selling just grain.

“Main­taining a herd of 100 cattle aligns well with our capacity to sustain­ably feed them on the farm, allowing for summer grazing. With the recent decline in grain prices, the Angus busi­ness has proven to be prof­itable,” states the farmer.

Now that grain prices have fallen, the Angus busi­ness is prof­itable.

Gheo­rghe Slobozeanu

Looking ahead, there are plans to explore processing capa­bil­i­ties as well. A local slaugh­ter­house is under construc­tion, providing an oppor­tu­nity for collab­o­ra­tion and the poten­tial to offer various meat cuts and prod­ucts. Gheo­rghe envi­sions a future where premium-quality meat prod­ucts will be directly avail­able to consumers. His youngest daughter is currently studying food chem­istry and shows a strong interest in a processing compo­nent within the busi­ness.