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More cattle =more profit?
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<blockquote data-quote="Craig-TX" data-source="post: 72552" data-attributes="member: 39"><p>It's a good question. As you get more cattle you will still have the same finite amount of time that must be spread across them. Or, you will have to hire help. Either way, according to theory, the extras should make you as much per unit as what you have now because of economy of scale. But it doesn't always work that way. It depends on a lot of factors that affect your ability to manage efficiently. </p><p></p><p>Say you're leasing five extra places and putting 20 cows on each. That will be a lot more time/work/expense than leasing one bigger place where you could put all 100. Especially if the five places are very far apart. </p><p></p><p>There are a hundred other considerations but efficiency is the key. It would pay to evaluate your expansion options based on the extra time required, how much more work will be involved, and how much money you can afford to put into it. Regardless, I wouldn't do it for less per head than 50 is getting you now.</p><p></p><p>Craig-TX</p></blockquote><p></p>
[QUOTE="Craig-TX, post: 72552, member: 39"] It’s a good question. As you get more cattle you will still have the same finite amount of time that must be spread across them. Or, you will have to hire help. Either way, according to theory, the extras should make you as much per unit as what you have now because of economy of scale. But it doesn’t always work that way. It depends on a lot of factors that affect your ability to manage efficiently. Say you’re leasing five extra places and putting 20 cows on each. That will be a lot more time/work/expense than leasing one bigger place where you could put all 100. Especially if the five places are very far apart. There are a hundred other considerations but efficiency is the key. It would pay to evaluate your expansion options based on the extra time required, how much more work will be involved, and how much money you can afford to put into it. Regardless, I wouldn’t do it for less per head than 50 is getting you now. Craig-TX [/QUOTE]
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More cattle =more profit?
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