Cost

[tom4018]

but if goes well we will average about a $100 a calf profit,

I would like to know how you are/were able to achieve this. (Not being a wise acre).

I haven't finished crunching my numbers yet, but so far they are well below what the last few years have been. I culled a harder this past year than years past.

I'm especially curious to see what my figures will be related to my hogs. I'm sure they won't be as good. At least the mill has come down a few dollars per 100 for the grains I feed them.

Katherine

My numbers are just for cash flow they do not account for any depreciation costs but I do include everything else as far as repairs, insurance, utilities, etc. Like I said this was an estimate and I only figured $.80 a pound @ 500# for the remaining calves I have to sell. We use chicken litter also this year to save some on fertilizer. And I count some calves we purchase and raise, so we have no expense in a cow, and we have averaged a little better profit on most of them.

We track everything with a spreadsheet and just started doing the budget one this year and I usually update it monthly one I enter this months expenses. It is just a plan and has open my eyes on a few things but if my estimates are close we should be in the $90-100 range per calf before depreciation is taken.

 

[Workinonit Farm]

Or is cattle ranching tough no matter what size the operation?

Curious,
John

Its tough no matter what size.

Bez+ put it well.

Katherine

 

[apical meristem]

Doing a quick preliminary work up looks as Ole Belle cost is 492 bucks to upkeep this year or a 1.35 a day.
So with a 5 weight calves bringing a frog hide per pound rings in a profit of 8 dollars a head.

What was your labor cost per cow?

 

[apical meristem]

Hi Everyone,
Please indulge the newbie question - Is there such thing as a sure-shot in making a profit on cattle? For example, are there huge agro/cattle corporations that do well based on economies of scale?

Or is cattle ranching tough no matter what size the operation?

Curious,
John

Lowering cost of labor ( and other fixed costs) per unit helps alot. A labor cost of $20,000/100 cows is $200/cow versus 500 cows is $40/cow.

 

[apical meristem]

After the whipping I took at the sale barn at Crockett on my last load in Oct. averaged .86 cents a pound, most of the calves are in the front pasture eating hay. I have enough hay for two or three years so I am holding them till Jan or Feb.

Have you ever thought about hauling them to "The City" or selling them at a preconditioned sale, like NETBIO in Sulphur Springs? http://www.sslivestockauctions.com/netbio_feeder.asp If you are holding them til winter you have time to give them their vaccinations and get a much better price.

 

[Caustic Burno]

Doing a quick preliminary work up looks as Ole Belle cost is 492 bucks to upkeep this year or a 1.35 a day.
So with a 5 weight calves bringing a frog hide per pound rings in a profit of 8 dollars a head.

What was your labor cost per cow?

My cost per cow unit is 492 bucks this year that includes all cost to get Belle to the sale barn.
I do not pay myself a wage per hour, my profit is in the sales over 492 dollars per calf of coarse there is not a 100% calf crop.

 

[dcara]

Was curious about cost and profiability calculation techniques used by various folks. One way would be to add up all the costs and divide by the number of head which would give cost per head. Then divide by the number of calves produced for average cost per calf. Then considering proceeds from calf sales wouyld yield an average profitability per cow. However, this way is a pretty broad brush and doesn't consider various things. For instance, if you increased (or decreased) your herd size then your per head costs would be higher (or lower respectively) since the purchase (or sale) proceeds gets amortized over the whole herd. Also, it is not as easy to identify the less profitable cows (on paper).

Alternately, you could keep track of each cow's cost (and profit from calf sales). In this case you might subtract the cows sale/salvage price from the purchase price and divide that by the number of calves she produced. However, in this case you don't know how profitable the cow was until you sell her.

Then there is the whole "what do you consider costs" issue. In my case, that answer is whatever Uncle Sam lets me consider as cost (including washing my truck).

 

[backhoeboogie]

Also, it is not as easy to identify the less profitable cows (on paper).
Alternately, you could keep track of each cow's cost (and profit from calf sales). In this case you might subtract the cows sale/salvage price from the purchase price and divide that by the number of calves she produced. However, in this case you don't know how profitable the cow was until you sell her.

High maintenance cows have to go period.

You lose some calves and that expense has to be spread. Some times you can graft a doggy on and that cuts the losses. Lots of work tho. My nurse cow is well into the black by herself when nothing else is doing much good. Her expenses are well beyond the general herd cow but you also have to consider the profit she renders. Everthing has to go into the right perspective.

Fencing cost and fertilizer cost are the biggest expense increases for me this year. Last year a bunch of hay didn't sell but it went out early in '08. That left me in the red for '07 as the income was realized this year. No matter what the papers show, I know it was residual and I know where I am for this year.

I am retaining heifers. That puts me in the red for cattle.

 

[1982vett]

Many different variables in calculating costs. Take for instance, if you are trying to get that operating loan you seem to find a lot of income until tax time when the expenses run rampant. :lol2: