novaman":1l1blro3 said:
MF135":1l1blro3 said:
If fed properly? Im not sure what assumption is being made here but the clear facts are that when fed and raised under identical conditions to, the energy expense per lb of body weight gain is over 10% lower in accretion type (beef breeds) than in the secretion type(dairy breeds). Cattle breeds were initially developed based on their ability to transform their nutrient uptake either into body tissue or milk secretion. Under identical conditions, the average daily gain of dairy calves is considerably less than those in beef breeds. This is elementary. The fact that Holstein calves have to consume 10% more feed($$$) to gain comparable weight clearly depicts their lack of nutrient utilization. I've bottle fed countless holstein/jersey calves and beef calves alike. While there is a greater initial cost in purchasing beef calves, the profit margins are far greater!
I would argue profit margins are not all that different.
Show me your numbers??
Under full feed, both will consume the same quantity of feed, yet the holsteins average daily gain will be considerable less. The energy expense per lb of body weight gain is over 10% lower in beef calves. Holstein calves cost more $ per lb of gain and bring less $ per lb when sold. period.
[ex]
For example we'll use $150 as our feed costs for each alternative. I can buy beef calves for $100, holsteins for $50. Each weighing ~100lbs.
Beef calf feed expense= $.45/per lb of gain. Dairy calf feed expense= $.50/per lb of gain
Beef Calf= $150/per 334lb of gain. Holstein = $150/per 300lb of gain.
Beef calves consistenly bring $.20 more per lb than holsteins of like conditioning. (Beef Calf= $1/lb Holstein = $.80/lb)
Sale Price - (calf purchase price + feed) = Gross Margin
BEEFcalf sale price - ($100 + $150)=GM
$1 @ 434lb - ($100+150) = GM
$434 - 250 =
$184
Gross Margin % = (Revenue-COGS) / Revenue = ($434 - $250) / $434 =
42.4%
Holstein calf sale price - ($50 + 150) =GM
$.80 @ 400- ($200)=GM
$320 - $200 =
$120
Gross Margin % = (Revenue-COGS) / Revenue = ($320 -$300) / $320 =
37.5%