In This Section |
Feeding Cattle Beyond Optimum
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| Author: | Dennis Martin - Feedlot Specialist/OMAFRA |
|---|---|
| Creation Date: | 17 June 2003 |
| Last Reviewed: | 31 August 2004 |
Since the May 20th announcement of a single case of Bovine Spongiform Encephalopathy (BSE) in Alberta, many feedlot producers have been holding cattle that under normal circumstances would have gone to market. Several thousand finished cattle are being held back weekly in Ontario, but these animals will have to be marketed some time in the near future, regardless of price. How long can finished cattle be held, and at what expense? Factors such as feedlot performance, feed costs, yardage, interest and potential discounts all come into play when determining the cost of holding cattle..
Heavy cattle on a finishing diet will generally eat about two percent
of body weight in dry matter (this may vary depending on type of cattle,
environment, and ration fed). Once cattle reach their ideal market
weight and finish, their dry matter intake (DMI) as a percent to body
weight will drop. As well, they will convert feed less efficiently,
resulting in lower average daily gains. As days on feed are extended,
this drop in performance will increase daily expenses and potential
discounts. Table 1 demonstrates the impact on performance and cost
to hold a 1400 lb. steer on feed 20, 40 and 60 days beyond finishing.
| # of Days Beyond Ideal Market Date | |||
|---|---|---|---|
|
20
|
40
|
60
|
|
|
Live Weight (lb.)
|
1460
|
1510
|
1550
|
|
Carcass Weight (60% dressed)
|
876
|
906
|
930
|
|
DMI as % of Body Weight
|
1.95
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1.85
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1.75 or lower
|
|
Average Daily Gain (lb.)
|
~ 3
|
~ 2.5 to 2.75
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~ 2 to 2.5
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|
Feed Efficiency (declines)*
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5-8%
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12-18%
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18-25%
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|
Added Feed Cost **
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$48.50
|
$95.50
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$139.50
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|
Added Yardage + Interest Costs ($0.50/day) |
$10
|
$20
|
$30
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|
Weight discounts
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$35
|
$72
|
$74
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|
Total Cost to Hold
(excluding possible yield discounts) |
$93.50
|
$187.50
|
$243.50
|
Performance drops as days on feed increase. Feed efficiency declines and Average Daily Gain (ADG) decreases, as days beyond ideal market weight are extended. Rumen health also becomes an important consideration the longer cattle are held past optimum weight and finish. Declining rumen health will cause even lower ADG's and may also cause founder or laminitis.
Weight and grade discounts are determined and assigned by individual packers, so they may vary. As well, a large influx of very heavy, overfinished cattle may trigger higher discounts in these categories. Table 2 outlines a fairly standard example of discounts that may be applied.
| Grade | Discount $/lb. |
|---|---|
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Yield Grade 3
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-$0.05
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B 1 F (Devoid Marbling)
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-$0.20
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|
B2
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-$0.25
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|
B3
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-$0.25
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|
B4 (Dark Cutter)
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-$0.25
|
| Carcass Weight (lbs.) | Discount $/lb. |
|---|---|
|
751 to 800
|
-$0.02
|
|
801 to 900
|
-$0.04
|
|
901 to 1000
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-$0.08
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|
1001 to 1100
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-$0.10
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|
1100 & Up
|
-$0.15
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