5 – Feeding Industry Flashcards
1
Q
How does the cow know that it is her calf in first 24hrs
A
- Location: where she had it
- Smell
- Eventually: will learn what it sounds and looks like
2
Q
What might a 24hr calf have if it is breathing rapidly?
A
- Fractured ribs
- Aspiration pneumonia
- Metabolic acidosis
3
Q
What is part of feedlot management (3)?
A
- Fiscal strategy
- Livestock inventory control
- Technical aspects of feeding cattle
4
Q
Fiscal strategy
A
- Building facility: landscaping=major expense
o Most have compacted concrete like stuff now
o Access to lang necessary for spreading manure
o Most feedlots own land for silage production only - Livestock financing: buying cattle
o Need to have at least 25% down - Operating capital
o Feed, bedding, fuel
o employee
5
Q
Describe the factors affecting the price of weaned calves coming into the feedlot
A
- demand!
- Gender
- Weight
- Quality
- Size of group
6
Q
Gender: weaned calf price
A
- Male calves cost more
o Due to feed efficiency advantage
7
Q
Weight: weaned calf price
A
- Lighter calves tend to cost more $/cwt
- *but heavier calves still worth more $$
8
Q
Quality: weaned calf price
A
- Castration status: steers>bulls
- Horns, frozen ears, BCS, previous vaccinations
- Breed type?
9
Q
Size of group: weaned calf price
A
- If get a large uniform calves=sold together as a large group will be HIGHER price/cwt than smaller groups
- Small groups (2-10)=very COMMON=tend to sell for lower prices compared to larger groups at same quality
o Small calf producer=not many in each ‘weight’ range
10
Q
What is the cost of buying a weaned calf? (current prices)
A
- 550lb/100 x $471.54 = $2600
- If 30,000 head feedlot=$778M in cattle inventory
- **need to have DEEP POCKETS
11
Q
What are the costs associated with feed the calf until it reaches slaughter weight?
A
- Cost of feeder cattle
- COST OF GAIN
o Feed costs
o Health costs
o Yardage
o Freight
o Bedding
o Interest to bank
12
Q
Yardage
A
- Daily non-feed costs not associated with ownership of cattle
- Fixed: taxes, insurance, depreciation on facilities
- Non-feed operating costs: fuel, utilities, office, repairs, labor
- *hotel charges for a feedlot to operate
13
Q
What is cost of gain?
A
- How much to put 1lb of weight=$1.30/lb
- Pretty much everything but the initial cost of the feeder cattle
14
Q
What is the target slaughter weight?
A
- 1400-1550lb (live) for steers
15
Q
What are 2 options in feeding industry?
A
- Investing or owning a group of cattle
- Feeding a group of cattle for other investors/customers
16
Q
Who might the ‘investors’ be?
A
- Cow-calf producer who wants to retain ownership of cattle
- Another feedlot owner or feeding operation
- An ‘investor’ looking to speculate in the cattle industry
17
Q
Custom feeding positive
A
- Provides ‘guaranteed’ cash flow for feedlot owner
- Lowers risk compared to ownership
18
Q
What does the customer do/is responsible for in custom feeding?
A
- Owns the cattle
- Pays interest on loans
- Takes risk on market
- Risk on morbidity, mortality, performance
- *when marketed to packer=customer gets the cheque
19
Q
What would the feedlot charges to the customer include?
A
- ‘yardage’: cost of running the hotel
- Bedding
- Feed
- Processing and drugs
20
Q
What do order buyers do?
A
- purchase specific types of cattle at a ‘specific’ price
o type will depend on expertise of feedlot
o performance and cost of gain must be predicted so purchase price can be projected
21
Q
what are the types of cattle available for purchase?
A
- Recently weaned calves
- Preconditioned
- Backgrounded
- Dairy
- Stocker calves or yearlings
- Grass yearlings
- Fed yearlings
- Short keeps
- Cull cows or heifers
22
Q
Sale of finished cattle to packer
A
- liveweight basis
o feedlot ‘sort’ cattle into attractive packages
o yield and grade will be predicted by feedlot
o may accept bids from several packers before selling cattle - ‘on the rail’ (GRID PRICING)
- *need to consider price, freight, discounts, value of Canadian $
23
Q
What is ‘on the rail’? What is an advantage?
A
- Price paid on carcass basis
- Advantage: can do GRIDS=bonuses or deductions based on carcass quality
24
Q
Feedlot needs to continue to operate even when profit can’t be project or very good. What are some strategies available to mitigate risk of losses?
A
- Increasing the custom feeding proportion of cattle
- Forward contracting to packer
- Forward contracting grain prices
- Hedging: use commodity futures on Chicago Mercantile Exchange
25
What is hedging?
- use commodity futures on Chicago Mercantile Exchange
- place a bet that market price will drop and if it does=you get money, but lose money on your cattle
26
Technical operations of feedlot
- office
- feed mill
- feed trucks
- farming operations
- shop
- processing cattle
- pen checking
- hospital operations
27
Employees
- compete with other industries (ex. potash and oil)
- pension plans, incentive bonuses, etc
- specialized skills needed
o reading feed bunks
o detecting sick cattle
o sorting fat cattle
28
What is the primary energy source for a feedlot ration in Western Canada
- Barley
- Wheat occasionally used
29
What is the primary energy source for a feedlot ration in the rest of North America?
- Corn
- Sometimes used in western Canadian feedlots
- *some use byproduct feeds
o Brewers/distillers grains=common
o Cull potatoes
o Potato chips/chocolate bars, etc.
30
Starting cattle on feed
- Encourage intake ASAP after arrival
- Intakes may be <1.5% body weight
- Once intake reach 2.5-2.7% can take off starter rations
- Good quality long stem hay for 3-5 days
- Introduce starter ration by day 2 (top dress)
- Increased mineral levels
31
Step up rations
- Series of rations (4-5) formulated to specific nutrient requirements
- Consistent increase in energy content
- Each step up=approximate substitution of 10% grain for 10% silage
32
What are some advantages of step-up rations?
- Natural progression of energy levels
- Allows adaptation of rumen organisms
- 3-5 days minimum
- Progress to 85% concentrate finishing ration
- Can predict performance based on energy/protein level
- Can accommodate least cost formulation
- Simple enough for day-to-day application
33
How do you manage step-up rations?
- Fed ‘ad-libitum’
- Get cattle on full feed, keep them there and avoid rumen acidosis
- Individual at feedlot designated as ‘bunk-reader’
o Evaluates amount of feed consumed and gives instructions for daily feeding
o Looks at each bunk early in morning
o Makes decision regarding what should be fed (amount and which ration)
34
What is a ‘slick bunk’?
- No feed left over at all
