feedlot questions

[iafarmer07]

hello everyone,
i was wondering if anyone knew roughly how much money a feedlot makes per head (profit)?
i know about how much profit you make on feeding out your own calves, but i was wondering how much money a feedlot would make?
also,
just out of curiousity, for the cattle feeders out there, what does everyone feed their feedlot calves (any type of feeder, from calves to finish feeders)?

thanks for the information.

 

[Brad D]

I don't think there is much money in feedlots these days, we are a custom feedlot that makes about cost plus 10% but there are not very many customers, LOL. Feedlots in canada are not as bad as feeding hogs yet though. are you looking for someone to feed some calve because we have feed and pen space,LOL

 

[gerardplauche]

Best case scenario (for me) is 20% profit. Average is 12%.

 

[iowafarmer]

There is a lot of money invovled and you can loose a lot of money doing it. You can make a lot of money if oyu own the cattle but that usually isn't how it works since not very many people can afoord 1,000 head of cattle to stick in the feedyard plus own equipment, have facilities and good yards and be able to farm and manage everything very well. You can loose a lot of money if you pay hiogh prices and then corn goes through the roof or else loose a lot to sickness or weather conditions. Or if you pay high prices only to have the fat market drop out on you. The board is a hard thing to play and would not suggest you go into that sicne it is complicated and not worth your time. Basically im saying it probably isn't a good idea to start a feed lot at this point in time especailly if youdon't have a lot of experience in the cattle industry. Just my thoughts though.

 

[simangus23]

I THINK THE INFO HERE IN ON TARGET--- IF i WAS YOU I WOULDNT VENTURE INTO THE FEEDYARD BUSINESS IF i DIDNT HAVE TO. THERE ARE OTHER WAYS TO MAKE A BUCK WITHOUT WORKING FOR DAMN NEAR NOTHING. WE HAVE BEEN FEEDING CATTLE FOR OVER 25 YEARS, BUT WE OWN THE CALVES FROM GATE TO PLATE. I.E. WE RAISE THE CALVES, BACKGROUND OUR OWN, FEED OUR OWN AND PROCESS OUR OWN.

 

[Jovid]

I THINK THE INFO HERE IN ON TARGET--- IF i WAS YOU I WOULDNT VENTURE INTO THE FEEDYARD BUSINESS IF i DIDNT HAVE TO. THERE ARE OTHER WAYS TO MAKE A BUCK WITHOUT WORKING FOR be nice NEAR NOTHING. WE HAVE BEEN FEEDING CATTLE FOR OVER 25 YEARS, BUT WE OWN THE CALVES FROM GATE TO PLATE. I.E. WE RAISE THE CALVES, BACKGROUND OUR OWN, FEED OUR OWN AND PROCESS OUR OWN.

WOW!! You just do it all. :roll:

 

[Brad D]

I THINK THE INFO HERE IN ON TARGET--- IF i WAS YOU I WOULDNT VENTURE INTO THE FEEDYARD BUSINESS IF i DIDNT HAVE TO. THERE ARE OTHER WAYS TO MAKE A BUCK WITHOUT WORKING FOR be nice NEAR NOTHING. WE HAVE BEEN FEEDING CATTLE FOR OVER 25 YEARS, BUT WE OWN THE CALVES FROM GATE TO PLATE. I.E. WE RAISE THE CALVES, BACKGROUND OUR OWN, FEED OUR OWN AND PROCESS OUR OWN.

That is very intersting not to many people do that, about how many head do you feed? Do you only process your own? Is it true that the processing plants get a big chunk of the pie? you don't have to answer any of these questions but I thought it never hurts to ask.
Thanks Brad

 

[GRTiger85]

Its hard for the feedlot to make much of anything when the price of fed cattle is going for around $.92 a lb, and the cost of gain to get them there is near a dollar. With corn so high, feeding cattle is tough to make much money right now

 

[Jovid]

I THINK THE INFO HERE IN ON TARGET--- IF i WAS YOU I WOULDNT VENTURE INTO THE FEEDYARD BUSINESS IF i DIDNT HAVE TO. THERE ARE OTHER WAYS TO MAKE A BUCK WITHOUT WORKING FOR be nice NEAR NOTHING. WE HAVE BEEN FEEDING CATTLE FOR OVER 25 YEARS, BUT WE OWN THE CALVES FROM GATE TO PLATE. I.E. WE RAISE THE CALVES, BACKGROUND OUR OWN, FEED OUR OWN AND PROCESS OUR OWN.

That is very intersting not to many people do that, about how many head do you feed? Do you only process your own? Is it true that the processing plants get a big chunk of the pie? you don't have to answer any of these questions but I thought it never hurts to ask.
Thanks Brad

Guess Sim is not going to answer. He must be teaching at a university or running his vet clinic or working up some feed rations :lol2: :lol2: :banana:

 

[KenB]

I THINK THE INFO HERE IN ON TARGET--- IF i WAS YOU I WOULDNT VENTURE INTO THE FEEDYARD BUSINESS IF i DIDNT HAVE TO. THERE ARE OTHER WAYS TO MAKE A BUCK WITHOUT WORKING FOR be nice NEAR NOTHING. WE HAVE BEEN FEEDING CATTLE FOR OVER 25 YEARS, BUT WE OWN THE CALVES FROM GATE TO PLATE. I.E. WE RAISE THE CALVES, BACKGROUND OUR OWN, FEED OUR OWN AND PROCESS OUR OWN.

That is very intersting not to many people do that, about how many head do you feed? Do you only process your own? Is it true that the processing plants get a big chunk of the pie? you don't have to answer any of these questions but I thought it never hurts to ask.
Thanks Brad

Guess Sim is not going to answer. He must be teaching at a university or running his vet clinic or working up some feed rations :lol2: :lol2: :banana:

Maybe he went somewhere else to try and impress people. :clap: :clap: :clap: :clap: :clap: :clap:

 

[rockridgecattle]

not to back up simangus but there is a guy in Manitoba doing the same thing. Birth to the plate. During the BSE crisis he wanted to some how make it. He and his brother and father built a butcher shop in winkler MB (i think). They do however take the beef to a Federally inspected plant to be slaughtered. They pick it up and hang, and cut.
When he started building the store in moved big trucks, dozers and other big equipment across the street and built a Superstore (a large grocier chain). The farmer kept on going and now he sees the superstore meat manager come over every so often to check his prices.
The farmer has since expanded into pizzas, frozen and fresh cooked, smoked meats and sausages of all types.
They are now buying other guys feeders to meet the demand.
I forget the amount of animals they raise but i do remember it was more than 100 head. Many more.

 

[simangus23]

Sorry for my non-reply as calving season is upon me and I have been busy ---

Gate to plate is the best way to go, but you have to have a market for your beef--- and it has to be good beef like High choice to Prime YG 2-3 or no dice.

The kinda cattle you are raising will determine if you can go gate to plate
Sim

 

[EAT BEEF]

Sorry for my non-reply as calving season is upon me and I have been busy ---

Gate to plate is the best way to go, but you have to have a market for your beef--- and it has to be good beef like High choice to Prime YG 2-3 or no dice.

The kinda cattle you are raising will determine if you can go gate to plate
Sim

How do you find the time to do all these wonderful things

 

[Brad D]

Sorry for my non-reply as calving season is upon me and I have been busy ---

Gate to plate is the best way to go, but you have to have a market for your beef--- and it has to be good beef like High choice to Prime YG 2-3 or no dice.

The kinda cattle you are raising will determine if you can go gate to plate
Sim

You still haven't answered any of the questions.

 

[traks44]

If you are in the business of just feeding cattle in a feedlot you probably arent doing just great(depending on feed costs). We calve in the spring and then when fall rolls around we run these calves along with alot more in our feedlot and our pastures. We added 1000 capacity to our feedlot a year ago to get more calves in the feedlot where we will use less fuel and man hours and quit wasting hay that gets stomped in the ground while they are on winter stubble or range pastures. Well with hay prices and the mild climate where we winter we ended up turning out more into the pastures than we wanted to save feed costs in the feedlot. Its costs about $1.04 to feed each calve in the feelot daily. This up from about $40 cents a few years back. Anyway so we put up with high feed bills and what not, because we will turn out on some very good mountain pastures where they will gain 2-3 lbs a day. We sell most our calves on the August futures anyway. So the key for us running a good feedlot is a really good mixing truck, mixing silage and mediocre alfalfa and having good grass to run out on. We are not feeding out by any means, only trying to keep the calf healthy and growing and the least amount of $/head we can.

Just how we do it anyway....

we make about $100 per head depending on what the original cost was to buy and this can fluctuate from $85 to$130 per head depedning on medicine, etc etc.

Maybe the most important factor for making money off of yearlings is SORTING SORTING SORTING. I have been taught this anyway.

 

[MikeC]

Feedlots are a margin business if you own the cattle. In other words, you profit from the difference you have invested in cattle and the amount the packers will pay.

If you are a custom feedlot and charge the cattle owner more than he can profit from selling fats to a packer, you won't be in business long.....................

You would want your customers to make a profit so that they will come back.

 

[simangus23]

How do I find time to do all these wonderful things? I work hard and hire good people. Pretty simple really. We normally retain ownership and feed about 400 head per year. Gate to plate is the best way to go-- for me-- if you dont mind working long hours.
Some people just cannot work together and have to be independent of all others which is ok, but I try to make the most I can-- as the Bank won't wait.

 

[simangus23]

Also ---if you are not raising what the packer ultimately wants you will lose --it is just that simple.
The Packer is on target of what the consumer wants and as a producer when you do not fulfill "his" demands you will lose. Dont you think the Packer knows what type (breed/ cross) finishes the best?
Sure they do----- Why aren't you all providing them what they want? I know why--- because all you care about is pounds to sell and not the quality of those pounds you are selling. Someday, you will have to pull your head out of your rope bag and not only provide your pounds--but quality pounds. That day is coming -- and when it does-- all the people that are raising what the Packer doesnt really want---wont have a sellable product.. What needs to happen is that Processors need to march in all the cattle raisers into the meat plant on slaughter days and educate them on what Grades the best, so that cattle producers will finally understand that it isn't all about quantity AND IT IS ALL ABOUT QUALITY
So you think you are raising the best cattle for beef --- retain ownership in your calves all the way to the rail and see.

 

[Brad D]

Sounds like you have the bull by the horns. It would be great if you could give us some facts or advise though? Alot of you info is you opinion.

 

[JMichal]

Also ---if you are not raising what the packer ultimately wants you will lose --it is just that simple.
The Packer is on target of what the consumer wants and as a producer when you do not fulfill "his" demands you will lose. Dont you think the Packer knows what type (breed/ cross) finishes the best?
Sure they do----- Why aren't you all providing them what they want? I know why--- because all you care about is pounds to sell and not the quality of those pounds you are selling. Someday, you will have to pull your head out of your rope bag and not only provide your pounds--but quality pounds. That day is coming -- and when it does-- all the people that are raising what the Packer doesnt really want---wont have a sellable product.. What needs to happen is that Processors need to march in all the cattle raisers into the meat plant on slaughter days and educate them on what Grades the best, so that cattle producers will finally understand that it isn't all about quantity AND IT IS ALL ABOUT QUALITY
So you think you are raising the best cattle for beef --- retain ownership in your calves all the way to the rail and see.

This is where we would like to see it go, but the packers have you where they want you. Over 70 % of the beef go to fast food, schools etc. as hamburger. They want lbs. They will take better quality at your cost.