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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: 384260" data-attributes="member: 6466"><p>So if a 1200 lb cow weans off a 600 lb calf every 12 months, and the cow existed totally on hay, it would take about 22 lbs of hay to make a pound of beef.</p><p></p><p>At $35 for a 1000 lb bale, that's $0.035 for each pound of hay, which would make each pound of beef cost $0.77. If the calf sold for $1.20 per lb, that would leave a profit of $0.43 per lb of beef produced.</p><p></p><p>Lately, though, finding a 1000 lb bale for $70 is a bargain, and that's before paying a ridiculously high price for trucking to have it delivered.</p><p></p><p>At $70 for a 1000 lb bale, that $0.07 for each pound of hay, and that makes each pound of beef cost $1.54 to produce. If the calf sells for $1.20 per lb, that would leave a loss of $0.34 per lb of beef produced.</p><p></p><p>I figure at $1.20 per lb for beef, the breakeven for hay, including delivery, is about $109 a ton. This figures out to about $54.50 for a 1000 lb bale delivered.</p><p></p><p>I'm just failing to see how a hay seller can expect to get a price for his hay that is higher than the breakeven of converting that hay to beef.</p></blockquote><p></p>
[QUOTE="forageconverter, post: 384260, member: 6466"] So if a 1200 lb cow weans off a 600 lb calf every 12 months, and the cow existed totally on hay, it would take about 22 lbs of hay to make a pound of beef. At $35 for a 1000 lb bale, that's $0.035 for each pound of hay, which would make each pound of beef cost $0.77. If the calf sold for $1.20 per lb, that would leave a profit of $0.43 per lb of beef produced. Lately, though, finding a 1000 lb bale for $70 is a bargain, and that’s before paying a ridiculously high price for trucking to have it delivered. At $70 for a 1000 lb bale, that $0.07 for each pound of hay, and that makes each pound of beef cost $1.54 to produce. If the calf sells for $1.20 per lb, that would leave a loss of $0.34 per lb of beef produced. I figure at $1.20 per lb for beef, the breakeven for hay, including delivery, is about $109 a ton. This figures out to about $54.50 for a 1000 lb bale delivered. I’m just failing to see how a hay seller can expect to get a price for his hay that is higher than the breakeven of converting that hay to beef. [/QUOTE]
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