Budgets

These budgets focus on the economics of feeding cattle and features such things as calculating the total cost of gain, feed efficiency and net return/animal. The budget programs (which can be downloaded from www.omafra.gov.on.ca/english/busdev/downtown.htm#beefbud) can evaluate past performance as well as projecting ahead. It allows you to look at "what if" scenarios before you purchase cattle. This issue features two Finishing Scenarios.

$$$ Ontario Feedlot Cost of Production Budget $$$
Finishing Scenario

Calf Information
Sale Weight (lb.)
1,445
Purchase Weight (lb.)
640
Days on Feed
258
Death Loss %
1.00

  $/Head $/lb.
Sale Value
$ 1,691  
Purchase Value
$ 1,011  
Death Loss Value
$ 14  
Margin
$ 666 $ 0.83

 

Expected Cost of Gain
Feed ($/lb of gain)
$ 0.54
Health & Vet. Expenses ($/hd)
$ 20
Marketing/Trucking ($/hd)
$ 27
Yardage** ($/hd/day)
$ 0.25
Interest Rate %
5.5

  $/Head $/lb.
Feed
$ 436 $ 0.54
Health & Vet. Expenses
$ 20 $ 0.02
Marketing/Trucking
$ 27 $ 0.03
Yardage
$ 65 $ 0.08
Interest
$ 53 $ 0.07
Expected Cost of Gain
$ 600 $ 0.75
Net Return
$ 66 $ 0.08

 

Expected Market Situation
Sale Price ($/lb.)

$ 1.17

Purchase Price ($/lb.)

$ 1.58


  $/Head $/lb.
Breakeven Sale Price
$ 1,625 $ 1.12
Breakeven Purchase Price
$ 1,077 $ 1.68

Total Gain (lbs.)

805

A.D.G. (lbs./day)

3.12

 

Feed Requirements
  $/tonne Lbs. per Head/Day $/Head Percent DM
Hay
$ 70 2.5 $ 45 90
Haylage
$ - - $ - 45
Corn Silage
$ 30 6.0 $ 46 35
Dry Corn
$ 160 7.3 $ 289 86
H.M. Corn
$ - - $ - 70
Beef Supplement
$ 400 0.5 $ 52 90
Salt & Mineral
$ 480 0.03 $ 4 100
Other
$ - - $ -
Other
$ - - $ -

Total Feed Cost
$ 436
Feed Cost per lb. of Gain
$ 0.54
Feed Conversion (lbs. - as fed basis)
11.33
Feed Conversion (lbs. - dry matter basis)
7.67

**Yardage is hydro, telephone, taxes & insurance, bedding, manure removal, housing, equipment repairs

This budget looks at the actual costs and close-out value of a particular group of fancy black Limousin steers. These steers were purchased last April/May, fed to market weight and sold early January, 2003. The ration listed is the average over 258 days. The steers were fed in a stepwise fashion; therefore more roughage was fed in the early stages and mainly corn was fed the last 100 days or so. The net return to the producer was $66.00/head.

$$$ Ontario Feedlot Cost of Production Budget $$$
Finishing Scenario

Calf Information
Sale Weight (lb.)
1,250
Purchase Weight (lb.)
950
Days on Feed
110
Death Loss %
-

  $/Head $/lb.
Sale Value
$ 1,438  
Purchase Value
$ 1,045  
Death Loss Value
$ -  
Margin
$ 393 $ 1.31

 

Expected Cost of Gain
Feed ($/lb of gain)
$ 0.69
Health & Vet. Expenses ($/hd)
$ 15
Marketing/Trucking ($/hd)
$ 27
Yardage** ($/hd/day)
$ 0.25
Interest Rate %
5.5

  $/Head $/lb.
Feed
$ 207 $ 0.69
Health & Vet. Expenses
$ 15 $ 0.05
Marketing/Trucking
$ 27 $ 0.09
Yardage
$ 28 $ 0.09
Interest
$ 21 $ 0.07
Expected Cost of Gain
$ 297 $ 0.99
Net Return
$ 95 $ 0.32

 

Expected Market Situation
Sale Price ($/lb.)

$ 1.15

Purchase Price ($/lb.)

$ 1.10


$/Head $/lb.
Breakeven Sale Price

$ 1,342

$ 1.07

Breakeven Purchase Price

$ 1,140

$ 1.20


Total Gain (lbs.)
300
A.D.G. (lbs./day)
2.73

 

Feed Requirements

 

$/tonne

Lbs. per Head/Day $/Head

Percent DM

Hay

$ 70

1.0 $ 8 90
Haylage

$ -

- $ - 45
Corn Silage

$ -

- $ - 35
Dry Corn

$ 160

10.0 $ 176 86
H.M. Corn

$ -

- $ - 70
Beef Supplement

$ 400

0.5 $ 22 90
Salt & Mineral

$ 480

0.03 $ 2 100
Corn Screenings

$ -

-

$ - 86
Other

$ -

-

$ -  
Other
$ - - $ -  

Total Feed Cost
$ 207
Feed Cost per lb. of Gain
$ 0.69
Feed Conversion (lbs. - as fed basis)
9.32
Feed Conversion (lbs. - dry matter basis)
8.07

**Yardage is hydro, telephone, taxes & insurance, bedding, manure removal, housing, equipment repairs

This budget was used to determine the feasibility of purchasing crossbred yearling heifers in November, 2002 and selling them in February/March 2003. The bolded numbers are projected costs for an individual producer. This example projects a Net Return of $95/Head and Feed Cost of $0.69/lb of Gain.


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