The integration of dairy beef with daitying in the southern South Island is a successful means of increasing stocking rates to maximise pasture utilisation when an increase in dairy cow numbers is not practical or economic. However the 1987-88 gross margins illustrate the vagaries of the beef market and the significant effect the schedule can have on the viability of integrating dairy beef even though there was considerable optimism at the start of the dairy season. In previous years the gross margin for bull beef, when the schedule has been about $2.OO/kg was closer to $lOOO/ha During the past season the nursecow option looks the most favourable in economic terms, allows for more management flexibility than bull beef and achieves the aim of maximising pasture utilisation. Keywords: dairy beef, dairying, bull beef
