enterprise Flashcards
What is the difference between systems thinking and linear thinking?
Systems thinking considers the interconnections within a system, while linear thinking follows a straight, cause-and-effect path.
Define Integrated Resource Management (IRM).
IRM is a holistic approach to managing resources that integrates various environmental, economic, and social factors.
What does Ranching for Profit focus on?
Ranching for Profit focuses on maximizing profitability through efficient resource use and management.
How is profit (loss) calculated?
Profit (loss) = income – costs.
What factors determine beef profitability?
- Efficiency of production
- Cost of production
- Price received for the product
What term describes cattle producers who do not set prices?
Price-takers
What happens when supply is less than demand?
High price
What happens when supply is more than demand?
Low price
What is the average feedlot margin reported for the week ending March 8, 2025?
$366 per head
What is included in feedlot costs?
- Feed
- Feeder calves
- Non-feed costs (death loss, labor, taxes, etc.)
What does the breakeven price in a feedlot calculation include?
- Cost of feeder cattle
- Feed cost
- Non-feed costs
What is a critical factor for determining cow-calf profitability?
Cost of production
What percentage of cow-calf producers calculate their cost of production?
Only 5-10%
What is the formula for cow-calf profit (loss)?
Profit (loss) = [(% calf crop sold x weaning wt) x price] + [(lb market cows and bulls) x price] - costs.
How is the breakeven price for cow-calf determined?
Breakeven price = Annual cow cost / (Weaning wt x % calf crop)
What is Standardized Performance Analysis (SPA)?
A system for analyzing cow-calf enterprise production and financial performance to facilitate comparisons.
List the top five ways high-return producers reduce costs.
- Reduce harvested and supplemental feed cost
- Use rotational grazing
- Use the right genetics
- Reduce labor costs
- Implement a strong herd health program
What percentage of steers and heifers are harvested by four packers?
85%
What are the primary reasons for wide price fluctuations in beef markets?
- Biological time lag to increase cattle numbers
- Carcass weight
- Drought and lower calf crop percentages
- Competitive meat prices
- Grain prices
What is the seasonal variation in calf prices attributed to?
56% of calves are born in February, March, and April.
What does forward pricing involve?
An agreement between buyer and seller for the purchase of cattle at predetermined terms.
What are futures contracts used for?
To manage risk by locking in profits and enhancing business planning.
What is hedging in the context of futures markets?
Selling a futures contract to manage price risk.
What is an option in futures trading?
The right but not the obligation to buy or sell a futures contract at a specific price.
