Beef 5- Feedlot sector Flashcards
How does the cow know that it is her calf?
smell and location
Calf with breathing issues and producer is worried about respiratory disease. What is least likely?
enzootic pneumonia from BRSV and Mannheimia
Feedlot sectors
-intensive production system
-100-350 animals per site
-some very large feeding organizations
-cattle placed on high energy, low roughage diets to optimize growth
Feedlot management aspects
- fiscal strategy
- livestock inventory control
- technical aspects fo feeding cattle
Facility financing
-landscaping is major expense
-need to have access to land for spreading manure but does not need to own it
-most feedlots own land for silage production
Livestock financing
Need to be able to but the cattle to feed
-banks will lend money at 1:4 basis at best
-some livestock agencies have purchase plans available
What determines the price of a weaned calf?
-demand
-gender (males cost more; due to feed efficiency)
-weight (lighter calves cost more $/cwt; but heavier calves still worth more total)
-quality (steers more than bulls; breed types, conditions)
-size of group (advantage to selling larger calf groups because they can be put together) **higher price/cwt than small group
What size groups are often for sale?
Often smaller groups 2-10 calves
-will sell for lower price than larger groups of same quality
Cost of buying a calf example
Costs of feeding calf before slaughter
-cost of feeder cattle
-feed costs
-health costs
-yardage
-freight
-bedding
-interest
Cost of gain
Sum of all costs divided by total projected weight gain
Yardage
Daily non feed costs not associated with ownership of cattle
-fixed costs: taxes, insurance, facilities
-non-feed operating costs: fuel, utilities, office, repairs, labor, medcine, bedding
”$/head/day”
How long are calves fed for? Yearlings?
Calves: 180-280 days
Yearlings: 100-180 days
Target slaughter weight for steers
1400-1550 lbs live
Break even price calculation
Custom feeding options
- investing or owning a group of cattle
- feeding a group of cattle for other investors/customers
**provides guaranteed cash flow for feedlot owners
**lowers risk compared to ownership
Risk for custom feeding customers
Independent cattle buyers
*local auction markets
*take orders from feedlot clients to purchase specific types of cattle
MArketing cattle
-few major players in packing industry
-cattle may have to meet specific target weights
-must meet grade specifications
Type of cattle available for purchase
Sale on liveweight basis
-feedlot will need to sort cattle into attractive packages
-yield and grade wil be predicted by feedlot
-may accept bids from several packers before selling cattle
Sale on the rail
Price paid on a carcass basis
Sale on grid pricing
Packers may buy cattle on a carcass basis with bonuses and penalties based on carcass characteristics such as quality grade, marbling score etc.
Factors affecting sale of finished cattle to packer
-consider price, freight, discounts, value of canadian $$
Risk aversion
Feedlot must continue to operate even when profit can’t be projected
What are strategies to mitigate risk of losses?
technical operations of feedlot
Feedlot employees
-compete with other industries
-offer pension plans, incentive bonuses
-needs specialized skills= reading feed bunks, detecting sick cattle, sorting fat cattle
Feedlot energy sources
Western Canada:
Mainly barley
sometimes wheat
USA and rest of canada:
corn
Other byproducts:
-brewers/distillers grains
-cull potatoes
-potato chips/chocolate bars
Starting cattle on feed
-encourage intake as soon as possible when arriving to feedlot
*less than 1.5% BW; take off starter rations 2.5-2.7%
Starting feed components
-good quality long stem hay for 3-5days
-starter ration by day 2 (70-75% forage)
-increased mineral levels (potassium)
Step up rations
Series of rations (8-10) formulated to specific nutrient requirements
-consistent increase in energy content
-each step= sub 10% grain for 10% silage
-every step 3-5 days
-progress to 85% concentrate finishing ration
Advantages of step up rations
-natural progression of energy levels
-allows adaptation of rumen organisms
-can accommodate least cost formulation
-simple for day to day application
How are cattle fed?
Mostly ad-lib
-get cattle on full feed, keep them there and avoid rumen acidosis
-feed consumption and daily feeding evaluation. Look at bunk each morning… dont want slick bunk (no feed left over at all)
*decide on amount and ration
