aplusmnt
Well-known member
Cow Costs Are Up
According to its annual survey, Cattle-Fax® reported that the average annual cash cost to carry a beef cow increased by $36/head, from $315 in 2004 to $351 in 2005. Cash costs do not include depreciation, opportunity costs, or returns to management. Cow costs were moderately higher in all regions. The Northwest region had the highest average cost of $397, followed by the Southwest region at $358, the Midwest region at $349, the Southern Plains at $328, and the Southeast region at $324. Total feed costs accounted for the largest percentage of the total cash costs at about 60%. They ranged from an average of $190/head in the Southeast region to $234/head in the Midwest region. Much of the increase in costs can be attributed to increased energy costs, which not only impacts fuel and utility expenses, but also the cost of mineral and protein supplements. The majority of cow/calf producers felt the pinch of higher costs in 2005, but because of the extremely strong cattle prices, profitability remained historically high. However, Cattle-Fax analysts cautioned that the reality of a turning cattle cycle, increasing cattle supplies, and lower prices is upon us. As a result, the most profitable producers in the next several years will likely evaluate and manage their costs very closely (SOURCE: Cattle-Fax Special Edition, April, 2006).
[December 8th, 2006]
http://beef.unl.edu/stories/200612080.shtml
According to its annual survey, Cattle-Fax® reported that the average annual cash cost to carry a beef cow increased by $36/head, from $315 in 2004 to $351 in 2005. Cash costs do not include depreciation, opportunity costs, or returns to management. Cow costs were moderately higher in all regions. The Northwest region had the highest average cost of $397, followed by the Southwest region at $358, the Midwest region at $349, the Southern Plains at $328, and the Southeast region at $324. Total feed costs accounted for the largest percentage of the total cash costs at about 60%. They ranged from an average of $190/head in the Southeast region to $234/head in the Midwest region. Much of the increase in costs can be attributed to increased energy costs, which not only impacts fuel and utility expenses, but also the cost of mineral and protein supplements. The majority of cow/calf producers felt the pinch of higher costs in 2005, but because of the extremely strong cattle prices, profitability remained historically high. However, Cattle-Fax analysts cautioned that the reality of a turning cattle cycle, increasing cattle supplies, and lower prices is upon us. As a result, the most profitable producers in the next several years will likely evaluate and manage their costs very closely (SOURCE: Cattle-Fax Special Edition, April, 2006).
[December 8th, 2006]
http://beef.unl.edu/stories/200612080.shtml
