Menu
Forums
New posts
Search forums
What's new
New posts
New media
New media comments
New profile posts
Latest activity
Media
New media
New comments
Search media
Members
Current visitors
New profile posts
Search profile posts
Log in
Register
What's new
Search
Search
Search titles and first posts only
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Forums
Cattle Boards
Beginners Board
Newbie question What does wt and cwt mean?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Help Support CattleToday:
Message
<blockquote data-quote="Katpau" data-source="post: 1145749" data-attributes="member: 9933"><p>It is because there are usually greater profits to be made on the lighter weight calves. Here is an example:</p><p>Say you have pasture capable of producing gains of 2 pounds per day available to you at a cost of $15 per head per month. You can buy either 400 pound calves, 500 pound calves or 600 pound calves. Let us say, just for this example, that all three groups of calves are similar except for age and weight, and they are all priced at $2 per pound ($200 per cwt). You will sell these calves to a feedlot at 900 pounds for $1.50 per pound ($150 per cwt). The 400 pound calves will cost you $800 and will take 250 days to reach 900 at a cost of $125. The 500 pound calves will cost you $1000 and take 200 days to reach 900 at a cost of $100. The 600 pound calves will cost $1200 but only take 150 days to reach 900 with pasture costing $75.</p><p>400 pound caves…..Sell for $1350 less calf cost $800 less pasture cost $125 = Profit of $425</p><p>500 pound caves…..Sell for $1350 less calf cost $1000 less pasture cost $100 = Profit of $250</p><p>600 pound caves…..Sell for $1350 less calf cost $1200 less pasture cost $75 = Profit of $75</p><p>As you can see, in this situation, unless I pay less per pound for the heavier calves, I am going to make less profit. The closer the cost of gain is to the value of that gain, the less difference there will be between light weight and heavy weight calves.</p></blockquote><p></p>
[QUOTE="Katpau, post: 1145749, member: 9933"] It is because there are usually greater profits to be made on the lighter weight calves. Here is an example: Say you have pasture capable of producing gains of 2 pounds per day available to you at a cost of $15 per head per month. You can buy either 400 pound calves, 500 pound calves or 600 pound calves. Let us say, just for this example, that all three groups of calves are similar except for age and weight, and they are all priced at $2 per pound ($200 per cwt). You will sell these calves to a feedlot at 900 pounds for $1.50 per pound ($150 per cwt). The 400 pound calves will cost you $800 and will take 250 days to reach 900 at a cost of $125. The 500 pound calves will cost you $1000 and take 200 days to reach 900 at a cost of $100. The 600 pound calves will cost $1200 but only take 150 days to reach 900 with pasture costing $75. 400 pound caves…..Sell for $1350 less calf cost $800 less pasture cost $125 = Profit of $425 500 pound caves…..Sell for $1350 less calf cost $1000 less pasture cost $100 = Profit of $250 600 pound caves…..Sell for $1350 less calf cost $1200 less pasture cost $75 = Profit of $75 As you can see, in this situation, unless I pay less per pound for the heavier calves, I am going to make less profit. The closer the cost of gain is to the value of that gain, the less difference there will be between light weight and heavy weight calves. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Cattle Boards
Beginners Board
Newbie question What does wt and cwt mean?
Top