Final Exam Flashcards
What’s the definition of growth
Change in body weight or mass with age. Change in size or stature.
What’s the definition of Maturity
Point of body weight equilibrium for cattle fed forage diets.
Point at which protein accretion ceases.
Point at which protein mass reaches a plateau.
What are the 7 special skills and facilities needed to limit-feed cattle
1) adequate bunk space so most cattle can eat at one time.
2) pens small enough so cattle come up to the bunk when fed
3) scales or other methods of weighing out the daily feed
4) roughage feeds to work the cattle up to a high concentrate diet
5) skill on the part of the manager
6) sufficient business management skill to assess the economic limitations and opportunities in limit feeding cattle
7) a sound plan for the use or sale of the cattle following limit growing.
What are the 2 types of acidosis?
Acute acidosis: noticeably sick, no feed intake, no rumination, increased heart rate and RR, diarrhea, lethargy.
Sub-Acute Acidosis: Likely no clinical signs, reduced feed intake, lower feed efficiency, lower weight gain, liver abscesses, grain in manure and diarrhea.
What are the 9 factors affecting feed intake?
1) Nutritive value of feedstuffs
2) Energy requirements
3) Day length
4) feed additives and implants
5) Age and weight of cattle
6) body condition/body fat content
7) feed milling
8) feed bunk management
9) environmental conditions
What’s the expected feed intake for high roughage diet?
Dry feed intake ranges from 2-3% BW.
Silage based diet is 6% BW
What’s the expected feed intake for a high concentrate diet?
2.8-3.2% BW of “arrival wt.” after cattle get on feed (28-30 days).
Intake of high energy finishing diets are 2-2.2% feeding wt.
What’s the purpose of processings grains?
To improve starch availability in cereal grains when the grain is fed to finishing cattle.
1) increase digestibility
2) increase efficiency
3) ??
What are the 8 considerations for selecting a grain processing method?
1) effect on feed intake, rate of gain, and feed efficiency
2) effect on feed management problems
3) response of type of grain to processing
4) uniformity and quality of finished product
5) influence on carcass yield
6) size of feedlot
7) repair, maintenance, and operating cost of equipment
8) labor requirements
How does steam flaking have such a dramatic increase in ruminal digestion?
“Starch gelatinization” forces water into starch granule and causes it to expand along with stabilizing it. More readily available for microbial attachment and digestion.
What’s the purpose of feed mixing?
Assures every animal receives all its formulated nutrients in every bite.
What’s the purpose of quality control?
Samples are collected randomly during mixing and micronutrient content is determined.
What are the 3 physical characteristics of ingredients for feed mixing?
1) shape
2) size
3) density
What are the 7 steps to prepare finished feeding in order?
1) add grain to mixer
2) add dry supplement
3) mix for 1 minute
4) add forage
5) add fat component
6) add molasses or liquid component
7) allow to mix - for the time specified for the mixer ( usually not less than 8 min.)
What 4 things does feed mixing time depend on?
1) type of mixer
2) ingredient composition of the diet
3) amount of feed in mixer
4) speed of mixer
What is the difference between the 3 types of mixers?
1) vertical screw mixers - difficult to achieve uniform mixing. Require more time to reach uniform mix (8-12 min or more)
2) Auger mixers - operate most effectively at 70-90% of capacity. Required time to mix depends on number of augers (2 min =4 augers, 8 min =3 augers)
3) reel mixers - satisfactory mixing at lower levels (25% capacity) require less time to reach uniformity (3-4 min)
What are the 3 objectives of feed bunk management?
1) optimize intake with minimal waste
2) consistent feed mixing and delivery
3) consistent feed intake - avoid erratic intake
Describe Full Bunk philosophy.
Feed in the bunk 24/7, if cattle run out of feed
1) decrease feed intake and weight gain
2) increase digestive disorders ( acidosis and bloat)
Describe slick bunk philosophy.
Bunk is licked clean as deliver morning feed at 6AM
Slight restrictions of feed intake (4-8%) improve feed efficiency (2-3%)
What is the 4 point bunk scoring system?
0= no feed remaining in bunk.
1/2 =scattered feed present most of bottom bunk exposed
1 = thin uniform layer of feed across bottom of bunk. Typically about 1 corn kernel deep
2 = 25-50% of previous feed delivery remaining
3 = crown of feed is thoroughly disturbed more than 50% of previous days feed remains
4 = feed is untouched
What are the 6 practices to consider in feed bunk management protocol?
1) reach each bunk at the same time everyday - before morning feeding
2) have feed delivered within a 15 minute window daily to optimize performance
3) maintain consistency of feed quality and quantity throughout the entire length of the bunch
4) establish a standard amount to increase feed offered. Typically 4-6% DM intake change only every 3rd day
5) wait a minimum of 3 days after an increase in feed delivery before increasing again.
6) provide written feed bunk management guidelines and standards to all employees to ensure consistent decision making on feed calls
What is the ideal cattle behavior to gauge intake level?
1/3 cattle standing at bunk
1/3 cattle heading for bunk
1/3 cattle resting with no interest
(Target bunk score 1/2 at least 2-3 days of the week)
What are 5 factors to consider when determining feeding frequency?
1) bunk capacity
2) ration type
3) stable feed
4) weather
5) type of cattle
What are the 6 environmental stress factors?
1) temperature
2) wind speed
3) precipitation
4) lot surface/mud
5) humidity
6) solar radiation
How does hair coat, air temperature, and wind speed impact maintenance energy requirements?
It increases energy requirements to maintain body temperature when it’s cold.
How does low air temperature and mud impact ADG?
Low air temperature increases intake
Mud decreases intake
What are the purpose of mounds?
To provide a comfortable resting place for cattle at reasonable cost during prolonged wet periods.
How does bedding affect cattle performance, carcass quality, and economic returns?
Overall increases
What are the 4 considerations and recommendations for designing wind breaks?
1) height (8ft.)
2) Length
3) orientation
4) Density
What are the 5 environmental risk factors for heat stress?
1) overnight air temperature >70
2) high relative humidity
3) radiant heat
4) wind speed <3mph
5) sudden change in risk factors for >2 consecutive days
What are the 4 cattle risk factors for heat stress?
1) genetics
2) health
3) production stage
4) adaptation
What are the signs of heat stress?
1) General upset
2) grouping together
3) seeking shade
4) higher breathing rate
5) panting
6) open-mouthed breathing
7) slobbering
How does hot temperature affect feed intake?
Decreases it
What are ways to prevent and reduce heat stress?
1) water
2) cattle handling early morning
3) feeding (70% after peak daytime temp.)
4) sprinklers
5) shade
6) air flow (build feedlot away from tree line)
What are the recommendations for designing shades?
1) provide adequate shade for each animal in the pen
2) provide a structurally sound and durable structure
3) minimize obstructions when cleaning the pen
4) maximize air flow under the shade
5) maximize pen drying under the shade
6) design a structure that suits the geographical location
What are the 4 components of USDA quality grade?
1) bone maturity
2) marbling
3) lean color
4) firmness/texture of lean
Explain how USDA yield grade relates to % BCTRC.
The lower the yield grade the higher the BCTRC (boneless closely trimmed retail cut)
What factors affect USDA quality?
1) breed (British > Europeans > indicus)
2) days on feed (longer > shorter)
3) Age (yearlings > calves)
4) implants (no > yes , moderate > strong)
5) sex (heifers > steers)
What factors affect yield grade?
1) breed
2) days on feed
3) ribeye area (larger < shorter)
4) rib fat thickness (thicker > thinner)
5) sex
What are the 3 methods of marketing fed cattle?
1) on live weight basis - a single price is discovered for all cattle in the pen prior to harvest
2) on dressed weight basis - a single price is discovered for all cattle in the pen after harvest
3) grid and formula pricing - a price is discovered for each individual animal in the pen after harvest
Who bares the risk for each marketing method?
The packer: Live weight pricing and dressed weight pricing
The producer: grid and formula pricing
Explain formula pricing
A transaction price using a formula that includes some other price as a reference. Formula prices aren’t discovered for each transaction rather some other price is used.
Explain grid pricing
Consists of a base price with specified premiums and discounts for carcasses above and below a case or standard set of quality specifications. May use a formula for establishing the base price.
What are the 5 methods used to establish the base price?
1) avg. price of cattle purchased by the packing plant for the week prior to or week of slaughter
2) specific market reports
3) boxed beef cutout value
4) futures market price
5) negotiated price
Explain the variability and magnitude of premiums vs. discounts for quality and yield grade
Discounts have more magnitude and vary up and down more overtime.
What 2 things do cattle feeders need to know when using grid pricing?
Cattle quality
How the formula or grid price is calculated
How do you manage a pen to maximize profit on a grid?
Max profit will be at a heavier endpoint on a dressed basis
What is a future market
Markets in which prices are established for commodities committed for delivery at some time in the future
What is a future contract
Is a legally binding agreement entered into when a trader buys or sells the futures market
Explain the term “brokers”
Livestock producers must open an account with a broker that will accomplish the actual trading
Explain the term “margin”
Insured the performance of the future contract
What are the 3 “orders” and explain all 3 terms.
1) Market order: instructs the broker to execute the order at the best price possible at the time the order reaches the exchange
Floor.
2) price limit orders: are filled only when they can be filled at or better than the price specified by the hedger.
3) stop orders: instruct broker to place an order at a certain price level specified by the hedger
Explain the concept of short and long hedging
Short: lock in a selling price (own the fat cattle that you plan to sell, sell the futures contract for the delivery month closest to when you plan to sell cattle)
Long: lock in a purchase price (plan to buy feeder cattle, buy the futures contract for the delivery month closest to when you plan to buy cattle)
What are the 2 type of future market traders and how do they differ?
1) speculators - traders who buy/sell future contracts for the purpose of profit from differences between buying and selling price. Will buy contracts if they think they can sell later at higher price and sell contracts when they expect to be able to buy later at lower price. They profit only to the extent they’re able to anticipate future price changes.
2) Hedgers - traders who use livestock futures market to offset price risk on their livestock. They would not knowingly take a position in the futures market that would lose them money, but futures profits or losses will offset profits or losses on their livestock.
What is basis and why is it important?
The difference between cash and future market price. It is the key to successful hedging allowing producers to convert a future price into a local price.
Definition of basis contract
Are agreed upon when cattle are placed on feed or up until 2 weeks prior to slaughter. A packer bids a basis or cash future price difference for fed cattle for the month in which cattle are expected to be slaughtered
What’s an “option”
The right, but not the obligation, to buy or sell something at a specific price on or before a certain expiration date
What are the 4 advantages of option markets?
1) limited risk
2) unlimited profit potential
3) no margin calls
4) up front cost in option premiums
What is the role of the buyer and seller of an option contract?
Buyer - the person who purchases the contract. Only person who has the choice whether or not to use the contract
Seller - person who sells the contract to the buyer. Seller receives a premium and in turn must take the opposite position if and when the option is exercised.
What are the 4 factors affecting premiums and how they affect premiums.
1) volatility - more volatility = higher premium
2) strike price - in the money = higher premium
3) time to expiration - more time to expiration = higher premium
4) market expectations - depends on expectation of futures price movements
Explain “put”
An option contract which gives the buyer the right to sell a specific futures contract at a specified price. If requested, the seller of the put must buy from the buyer of the put option the specified futures contract at the contracted price
Explain “call”
An option contract which gives the buyer of the call option contract the right to buy a specific futures contract at a specified price. If requested, the seller of the call option must sell to the call option buyer the specified futures contract at the contracted price.
Explain “strike price”
The underlying futures contract price at which the buyer of the option contract had the right to accept a sold position (put) or bought position (call). Strike prices are in 10 cent increments for wheat and corn and 25 cents for soybeans
Explain “premiums”
The price of an option. The money the option contract buyer pays the option contact seller. The premium is the max amount the option buyer can lose. It’s the max amount the seller can gain
Why are 3 alternatives to offset an option contract?
1) sell the option back if it has value
2) exercise the option
3) let the option expire if it has no value at the time of expiration
What is a “forward contract”
A legally binding agreement between a buyer and seller on a price at a future date
What are the components of a forward contract?
1) price
2) quality of cattle
3) number of cattle
4) delivery date
What are the difference between a forward and future contract?
Forward: private, locked in, terms negotiated, locks in price and basis
Future: public, liquid, terms are standardized, locks in price
