In the last year the cattle industry has seen some very hard times with the price of fuel and feed. With the price of diesel being over $4 per gallon, it’s hard to afford to put up hay. And with the price of grain being so high, the feedlots are having a hard time putting on the gain that they need to give the packer what he wants.
The feedlots have been paying around $1.15 per pound of gain on heifers and steers starting at 800 pounds and going out at 1250-1350 pounds to the packer. The 800 pound steers have been selling for $1.10 to $1.15 per pound. The packer has been giving around $1.00 per pound for steers. Now if you are getting $1350 per head and paying $1.15 per pound of gain, you can see it doesn’t work. This means the feedlots are losing around $0.15 per pound. My point is that the only section of the cattle industry making money is the stocker.
The stocker is the person raising calves from weaning to 800 pounds and then selling to the feedlot. This person gets the calves through the early respiratory disease complex and utilizes the cheapest gain, grass or forage. This gain may just be pasture and some grain or silage and grain in a total mixed ration. This will depend on the operation. The stocker maybe paying around $1.15 per pound or up to $1.40 per pound depending on the size of calf he is buying. But, his price per pound gain is still cheaper than anyone else’s.
Now to make a point, I think we need to think about holding on to calves until they are bigger and a little older. This may not work later this fall or for some of you, but it works right now. If you sell calves at $1.15 per pound weighing 800 pounds, that’s $920 each. That works better for me than selling at 400 pounds and getting $1.40; gross dollars would only be $560 each. This gains you around $360 gross per calf.
Yes, you would have some extra cost, trouble and risk. But, the gain might outweigh the cost, trouble and risk. As far as risk, it is really not much more than you experience each day. A cattleman and farmer told me once that he did not have to go to Vegas to gamble, all he had to do is get up. As far as the cost, “What doesn’t cost today?" And as far as the trouble, yes it means a little more work, but what farmer or cattleman is afraid of a little more work? If you are afraid of work you shouldn’t be in agriculture.
As far as facilities to keep calves and wean them, it could be done with a minimum, such as hot wires. A decent chute will probably be required, which most cattleman already have. We would have some money in them, processing and working. This might cost as much as $10 to $20 per head depending on what products are used. The rest of the cost would be in feed. And I guarantee you a 500 pound animal will not eat what a 1,200 pound animal will. And it doesn’t have to be the high dollar corn. There are alternatives out there. Talk to your veterinarian, nutritionist or county extension agent. One of them should give you some good ideas. The county extension agent’s salary is already paid by your taxes, so he is free and not biased by working for a company.
Just to review the figures, if we spend an extra $225 per head and gain $360 per head, that yields an extra $135 per head in our pocket. On 10 head that’s an extra $1,350 or on 100 head that’s an extra $13,500. Just food for thought!
Dr. Tim O'Neill owns Country Veterinary Clinic in Farmington, Ark.
