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A new way to study cow profitability?
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<blockquote data-quote="Brandonm22" data-source="post: 618580" data-attributes="member: 7645"><p>I don't buy that argument at all. I have a December market report in front of me. AL slaughter cows were bringing 44.5 for 1200 - 1700 lb cows. 800 - 1200 lb slaughter cows were bringing 43.5. The difference between a 1000 lb cow and a 1500 lb cow at the time of their deaths is only $232, but for argument's sake we will use your $250 number. Prorated over the life of the cow (12 years) that is a whopping $20.83 a year. IF you spend $350 per 1000 lb cow on feed, hay, lime, and fertilizer and switching to a 1500 lb means increasing that 20% (and that number is arguably low) now you are spending $420 per cow. Even if you add back in that $20.83 (and I hope the cow don't die on the place), the big cow still has to produce $49 a head more calf than the small cow for you to break even on the deal. Using my Alabama market report, a Med and lrg 1 steer weighing 540 lbs paid out ~$82.86 cwt or ~$447. Tack on that $49 and your big cow is going to have to sell a $496 calf in this market. At $78 cwt (the avg price for 6 wt steers) she has to wean off a 636 lb calf for you to not lose money on the deal. With those numbers, the bigger cow has to wean off almost 100 lbs more calf each and every year that she is in service AND bring that extra $250 at salvage for you to make the same amount of money.</p></blockquote><p></p>
[QUOTE="Brandonm22, post: 618580, member: 7645"] I don't buy that argument at all. I have a December market report in front of me. AL slaughter cows were bringing 44.5 for 1200 - 1700 lb cows. 800 - 1200 lb slaughter cows were bringing 43.5. The difference between a 1000 lb cow and a 1500 lb cow at the time of their deaths is only $232, but for argument's sake we will use your $250 number. Prorated over the life of the cow (12 years) that is a whopping $20.83 a year. IF you spend $350 per 1000 lb cow on feed, hay, lime, and fertilizer and switching to a 1500 lb means increasing that 20% (and that number is arguably low) now you are spending $420 per cow. Even if you add back in that $20.83 (and I hope the cow don't die on the place), the big cow still has to produce $49 a head more calf than the small cow for you to break even on the deal. Using my Alabama market report, a Med and lrg 1 steer weighing 540 lbs paid out ~$82.86 cwt or ~$447. Tack on that $49 and your big cow is going to have to sell a $496 calf in this market. At $78 cwt (the avg price for 6 wt steers) she has to wean off a 636 lb calf for you to not lose money on the deal. With those numbers, the bigger cow has to wean off almost 100 lbs more calf each and every year that she is in service AND bring that extra $250 at salvage for you to make the same amount of money. [/QUOTE]
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