Beef management the key in changing economic times
By Carol Stender
cstender@agrinews.com
Date Modified: 03/11/2010 9:07 AM
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LITCHFIELD, Minn. — A few years ago cattlemen were most concerned about price, but now the focus is shifting to what goes into the herd and what producers are getting out of the herd.
A whole host of production costs need to be considered, said University of Minnesota Beef Team nutritionist Grant Crawford told Meeker and McLeod County producers.
Feed, trucking, veterinary supplies, land rent, facility costs, marketing costs, machinery, taxes, insurance, license fees and depreciation.
"The question is, are we accounting for all of this and how can we reduce the costs?" Crawford said.
He referenced the 2008 Farm Business Management report and focused the top 20 percent of beef producers. The average cow cost was $509.13, which includes everything that goes into the cow during the year.
Feed made up 59 percent of the cost, he said. 19 percent went into overhead; 6.1 percent was spent on repairs; 5.7 percent for fuel; and 6.3 percent for veterinary costs.
The costs include overhead, hired labor, taxes, insurance, utilities, interest and depreciation. The costs can change from operation to operation depending on the feed put into the cow over winter.
Anything added for the calf from birth to weaning goes into the cow cost, he said.
For the first five weeks, the calf's rumin is still developing, said U of M beef team specialist Ryon Walker. Milk production is based on three months of lactation.
Keep records. It doesn't have to be an Excel spreadsheet but should be a system that tracks all costs.
Adapt to the markets. What worked yesterday may not work today, Craw ford said. Figure the costs of developing your own heifers over purchasing.
Maximize resources, Walker said. Consider stalk grazing, low cost feedstuffs and pasture management. Match forages to the environment.
In feedlots, monitor the cost of feed mixing and weighing and bunk management.
Evaluate feed options that include byproducts, roughage sources, grain processing and supplement needs. Adjust bedding and stocking densities for weather conditions and facilities.
A plan is important, but make sure it's a good one, Crawford said. What worked yesterday may not work tomorrow.
Many things can affect profit, Walker said. Feed costs, markets and feed efficiency are some of the factors, Walker said.