Terragen's Probiotic Boosts Angus Cattle Weight and Feed Efficiency

Highlight Summary: 

• Probiotic Increases Cattle Weight: Terragen’s probiotic additive boosts average weight gain by 4.6%, adding nearly 9kg to Angus cattle's carcass weight. 
• Feed Efficiency Improved: Single-dose probiotic treatment enhances feed conversion ratio by 13%, helping farmers save on feed costs. 
• Better Carcass Quality: Probiotic-fed cattle show improved marbling and overall yield percentage compared to control groups. 

Terragen's Probiotic Enhances Angus Cattle Growth and Feed Efficiency 

Terragen (ASX:TGH) has reported promising results from a recent trial involving its probiotic livestock feed additive, claiming significant improvements in the weight and feed efficiency of Angus cattle. The trial, conducted on 264 Angus steers in a beef feedlot setting, highlighted several key benefits of the company's ‘Ruminant Probiotics’ product. The data demonstrates not only a marked increase in carcass weights but also substantial improvements in feed conversion ratios, which could benefit farmers’ bottom lines. 

Key Findings from the Trial 

In the trial, cattle were administered either single or double doses of Terragen’s probiotic, compared to a control group and a group receiving the liquid MYLO product. The results showed that cattle receiving the double-dose of the probiotic had an average daily weight gain increase of 4.6%, leading to a higher final carcass weight, with an average increase of nearly 9kg per steer compared to the control group. 

The total value per carcass was reported to increase by $57, which can potentially improve the return on investment when factoring in the cost of feed. 

Improved Feed Conversion and Cost Savings 

The trial also demonstrated significant improvements in feed conversion efficiency. Cattle receiving the single-dose of the dry probiotic exhibited nearly a 13% improvement in feed conversion ratio compared to the control group. This translates into savings of approximately $50 per ton of feed, based on an average feed cost of $380 per ton. 

For farmers, this improvement in feed efficiency means reduced feed costs and potentially higher profit margins, especially when scaled across larger herds. 

Marbling and Yield Improvements 

In addition to weight and feed efficiency, the trial also found that cattle receiving the probiotic treatment exhibited better marbling in their meat and higher overall yield percentages than the control group. This suggests that the probiotic not only improves the quantity of meat produced but also its quality, which could appeal to processors and consumers seeking higher-grade beef. 

Broader Implications for Livestock 

Terragen’s probiotic is not limited to just cattle. The company highlighted existing research showing that its product can also significantly increase daily weight gain in lambs by 24%. Furthermore, studies have suggested that lactating cows could see a weight increase of nearly 20% when using the probiotic, although this aspect was not included in the recent trial focused on beef cattle. 

Market Response 

Despite the positive results from the study, the market’s reaction to Terragen’s announcement was relatively muted. Shares of the agritech company remained flat as the trial data was released, a reflection of the cautious market sentiment surrounding agricultural technology stocks, particularly in the Australian context where agritech companies are still a relatively niche sector. 

While the study shows clear potential for the probiotic to improve livestock productivity and feed efficiency, it remains to be seen how quickly the broader agricultural market will adopt this new technology. 

Bottomline 

Terragen’s probiotic feed additive has demonstrated its ability to enhance the growth and feed efficiency of Angus cattle, offering benefits such as increased carcass weight, improved feed conversion, and better meat quality. While the response from the market has been subdued, the potential economic advantages for farmers could drive greater adoption of the product in the future, contributing to the ongoing development of the agritech sector in Australia.