How to Maximize Profit on Beef Cattle

viii Ways to Maximize Cattle Profits

4/13/2018

Accept a programme

With higher feed, seed, fuel and fertilizer costs, beef producers need to consider alternative approaches to feeding and managing their herds. "They need to brand sure they have a feeding and management plan in place to minimize feed costs, optimize herd operation and maximize profit," says Ron Lemenager, Purdue Extension beef management specialist. Hither are viii ways to get started.
i. Cull the herd

Feed costs correspond between threescore-75% percent of the annual toll of keeping a moo-cow. Lemenager says the annual price to keep a cow can exceed $500 per cow and could exist as loftier equally $700 in some operations. "Feed costs are going to be high, so producers must make plans now on how to go through the winter, and 1 strategy is to cull unproductive cows," he said. "Cows that are open, cows that are old and arthritic, and cows that are not going to produce heavy weaning weight calves that will let you lot to pay the cow'due south way side by side year need to exist culled," Lemenager says.
2. Extend forage supplies

Lemenager explains that by extending the grazing season, you tin behave cows into winter and reduce the wintertime feed costs from harvested forages and supplemental feeds. Getting rid of non-productive cows in the summer volition likewise will help to extend the grazing season by allowing more acres to be available later in the autumn and on into the winter feeding flow.
3. Consider culling feed

When provender supply is low, alternative feeding strategies must exist considered. Grazing ingather residues like corn stalks and wheat straw can reduce cost and conserve hay. Corn stem grazing can provide xxx-60 days of grazing depending on soil types and rainfall. The cardinal to grazing corn stalks is to monitor trunk condition. If cows start losing weight and status, more supplementation is needed. When it comes to protein supplements, corn by-products (distiller'due south grains or corn gluten feed, pictured here) can be used to meet not but the dietary protein needs, but likewise provide some additional dietary energy.
4. Take forages tested

"I would highly recommend that producers test forages," Lemenager says. "If you underfeed cows you're going to cede performance, and if y'all overfeed cows it's going to cost a whole lot more coin. Target the needs of the cow -- not over, non under." Once y'all know the nutritional value of the base feeds, and so you can piece of work with an Extension professional person to aid put together a ration that will meet the production needs of your cow herd and production goals. Typically this means utilizing feeds that are high in 1 or more nutrient categories (free energy, poly peptide, vitamins, minerals) that the forage is not coming together.
5. Evaluate and body-condition score cows

It'due south as well important for producers to torso-condition score their cows, Lemenager points out. "Information technology'southward a pretty good indicator of where your cows are nutritionally," he says. "If you lot start to see cows slide in body condition, and so you demand to add some additional energy or poly peptide or other nutrients to make sure they stay at the level of production yous desire."
iStock: jmt0826

6. Get the near value possible from calves

It'southward also of import to maximize the value of the calves, Lemenager said. "If you oasis't weaned your calves and marketed them still, recollect about how to maximize the value of those calves by talking with potential buyers," he says. "If they want preconditioned calves, then think almost preconditioning. If they want heavier weight calves, then maybe you should background those calves for a while. The point is, don't take a discount on your calves if you can help information technology. Minimize your discounts, and if you accept the opportunity to take a premium, that's great."
7. Consider value-added marketing

Knowing production costs then marketing cattle rather than only selling them is critical. Marketing is all about working in accelerate to make as many bidders interested in your cattle equally possible. Selling is about expecting buyers to be interested enough in your calves to bid, rather than you wondering why they didn't. Pooling calves with some other producer into larger, more uniform groups might be an option. Working with a feedlot to sell calves direct, or possibly retaining all or partial ownership through the feedlot might also be options.
8. Differentiate your product

There are many opportunities to differentiate your product and reach for the top of the market ranges, but you need a well designed and implemented marketing program. Cattle reputation, past performance history, seasonal timing, a certified vaccination program, and adding more pounds after weaning become important factors to consider. These are true whether you're utilizing an auction sale, video market, direct trade, frontward contract or retained ownership. The name of the game is marketing and planning alee.