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Cattle Boards
Grasses, Pastures & Hay
Cost of hay verses price of beef
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<blockquote data-quote="forageconverter" data-source="post: 384205" data-attributes="member: 6466"><p>How many pounds of 'good quality' hay does it take to make a pound of beef?</p><p></p><p>Since a cattle producer is more or less trying to turn feed into beef, and then sale that beef at a profit, doesn't the price of beef more or less dictate what he can pay for the feed?</p><p></p><p>I understand the high costs of putting up hay. But when the hay becomes more valuable than the beef it can be turned into, what is the point of turning the hay into beef?</p><p></p><p>For that matter, what is the point of putting up the hay in the first place if you are just going to convert the hay to something less valuable? Why in the world would a cattle producer buy hay that is more valuable as 'hay' than it is once it has been converted to beef?</p><p></p><p>If one was in a down market, I could see feeding high price hay to hold off liquidating until the market turned. But other than that scenario, I'm having a hard time penciling the high cost of hay verses the price of beef.</p></blockquote><p></p>
[QUOTE="forageconverter, post: 384205, member: 6466"] How many pounds of ‘good quality’ hay does it take to make a pound of beef? Since a cattle producer is more or less trying to turn feed into beef, and then sale that beef at a profit, doesn’t the price of beef more or less dictate what he can pay for the feed? I understand the high costs of putting up hay. But when the hay becomes more valuable than the beef it can be turned into, what is the point of turning the hay into beef? For that matter, what is the point of putting up the hay in the first place if you are just going to convert the hay to something less valuable? Why in the world would a cattle producer buy hay that is more valuable as ‘hay’ than it is once it has been converted to beef? If one was in a down market, I could see feeding high price hay to hold off liquidating until the market turned. But other than that scenario, I’m having a hard time penciling the high cost of hay verses the price of beef. [/QUOTE]
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Cost of hay verses price of beef
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