Highest Influence on Profitability of Beef Cow-calf Operation

Production decision for both the cow and dogie bear upon ranch turn a profit potential. Photo credit, Debbie Price; Alachua, FL)

Equally cattle ranchers look for ways to create profitability in stagnant or down markets, operational expense and profit centers need to be examined. Many factors contribute to the overall profitability of the beefiness cattle operation on an annual basis. Even so, in that location are four points that consistently influence the profit potential. All four are well inside the control or directly influence of a rancher. These 4 areas are found across all herd sizes and locations, so they are worthy of discussion.

1. Annual Cost of Maintaining the Cow – The almanac operating expense of the cow, the base of operations product unit of measurement, is one of the largest expenses for the beef operation. USDA-ERS data for 2008 to 2017 estimates that the boilerplate almanac operating price of a cow in the U.s. in 2018 was $562, with a total toll of $i,374 when all overhead is included. Certainly, this annual cow operating, and total cost varies by region and the input costs associated with feed, pasture, veterinarian, marketing, interest, labor, equipment, and other small cost areas. Each of the toll areas should be scrutinized as they contribute differently to the operating and overall costs; for instance, feed costs account for 68% of operating costs, but just 28% of the full costs, whereas labor costs contribute 35% of total costs associated with a beef cattle operation.

2. Percentage of Cows Weaning a Calf – In a cow-calf operation there are two main sources of revenue, weaned calves that are sold and cull animals – other sources of acquirement are minor. For a cow to bring acquirement to the beef cattle operation she must produce a live dogie that tin can be sold, or she is sold herself. The total operating costs of a beefiness cattle performance is spread beyond all the cows that reside in the herd. The annual cow operating costs use to all cows equally, therefore as many cows as possible demand to contribute to the revenue pool as possible by weaning a calf. More than calves spread the fixed and variable costs over more animals, and equates to more than opportunities to generate revenue. Ultimately the costs are nearly the same to maintain a cow that weans a calf or non, but a cow that weans a calf tin can generate more revenue.

three. Weaning Weight of Calves – Weaned calves are the principal source of acquirement for the beefiness performance, as such the more than pounds available to sell, the more potential revenue is generated. The weaning weight of the dogie is influenced by several factors that include sire/dam genetics, moo-cow milk production potential, dam/dogie health, pasture conditions, creep feeding, calf implant status, age at weaning, and several others. Much of what drives calf weaning weights are decisions and management aspects that are nether the control of the rancher.

iv. Toll Received for Weaned Calves – The price received for the calves at the time of marketing is influenced by several factors controlled past the rancher, and many are are not. A dogie that meets the demands of the market can maximize the price received, calves that practise no come across the expectations of the buyer are oft discounted. The price received at marketing for weaned calves is affected past calf management, i.e. is the calf castrated, hair glaze condition and color, breed type, weight, and number of like calves in the sale lot. Selecting marketing options that encourage the opportunity to maximize sale price by attracting multiple purchasers, and marketing calves in larger groups of like animals increases the price received for each dogie.

The showtime 3 items are all controlled by moo-cow-calf nutrition and cow reproduction. Without attending to the overall cow nutritional program, and the subsequent reproductive functioning, generating a profit in a beef cattle enterprise is difficult. Optimizing the economic opportunities in a beef cattle operation are imperative for long-term success. Understanding where the cost centers are in a cow herd and working to minimize those expenses is important. Addressing stock-still and variable almanac costs of managing a cow involves data drove, adequate records, and keen decision making. Likewise, cow and calf performance and the subsequent revenue is ultimately reflective of the management of the cow herd and the level of management applied to the dogie.

Additional Resource:

Implications of Cow Body Condition Score on Productivity

Factors Affecting Calf Selling Price at Marketing

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Source: https://nwdistrict.ifas.ufl.edu/phag/2019/06/03/what-influences-profit-for-the-beef-cattle-enterprise/#:~:text=Weaning%20Weight%20of%20Calves%20%E2%80%93%20Weaned,more%20potential%20revenue%20is%20generated.

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