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Not sure I fully understand cattle prices, a little help
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<blockquote data-quote="Howdyjabo" data-source="post: 516350" data-attributes="member: 391"><p>How can there be that much of a change over it originally costing .55/lb gained? Or was that his estimate of what the gain would end up costing on his contract?</p><p>And how did it go from low pasture gains to paying for feed and hay? (on feed 1-1.5lbs/day is not real good gain rates for 90days-no matter what type of calf is being put in)</p><p></p><p>As far as the Morbidity being high- . The type and means of putting calves together will determine how much morbidity to expect. It Ranges from calves already preconditioned (in one group) running from 0-10% all the way up to big cutting bulls put together as individuals off sales being 20-30%. And thats averages which means some loads are much higher and some are much lower.</p><p></p><p>Also having a calf get sick is not good.It does have some long term costs and when we are talking about 20$ /hd profits it doesn't take much to fall into the REd.But....... its not the end of the line for 95% of them if they were caught before too much lung damage occurred. If you are having major losses from calves getting sick theres something wrong with management(or you hit the dreaded train wreck).</p><p></p><p>Right now its hard to pencil a profit in backgrounding calves unless you can do it on cheap grazing and do all the work yourself.</p><p>And as much swing as I have seen in your cost and program outlines you don;'t SEEM to understand enough of whats involved to make an informed judgment- and theres not enough time in the day to catch you up here.And your figures and management plans keep changing so no one can give you good advice. Most of the money made in backgrounding is made on buying the right calves at the right price-at the right time.....the actual growing out is just done well to make sure you don't throw away the profit you started with when you bought the calves right.</p><p> Right now you SEEM to be a contractors dream come true.</p></blockquote><p></p>
[QUOTE="Howdyjabo, post: 516350, member: 391"] How can there be that much of a change over it originally costing .55/lb gained? Or was that his estimate of what the gain would end up costing on his contract? And how did it go from low pasture gains to paying for feed and hay? (on feed 1-1.5lbs/day is not real good gain rates for 90days-no matter what type of calf is being put in) As far as the Morbidity being high- . The type and means of putting calves together will determine how much morbidity to expect. It Ranges from calves already preconditioned (in one group) running from 0-10% all the way up to big cutting bulls put together as individuals off sales being 20-30%. And thats averages which means some loads are much higher and some are much lower. Also having a calf get sick is not good.It does have some long term costs and when we are talking about 20$ /hd profits it doesn't take much to fall into the REd.But....... its not the end of the line for 95% of them if they were caught before too much lung damage occurred. If you are having major losses from calves getting sick theres something wrong with management(or you hit the dreaded train wreck). Right now its hard to pencil a profit in backgrounding calves unless you can do it on cheap grazing and do all the work yourself. And as much swing as I have seen in your cost and program outlines you don;'t SEEM to understand enough of whats involved to make an informed judgment- and theres not enough time in the day to catch you up here.And your figures and management plans keep changing so no one can give you good advice. Most of the money made in backgrounding is made on buying the right calves at the right price-at the right time.....the actual growing out is just done well to make sure you don't throw away the profit you started with when you bought the calves right. Right now you SEEM to be a contractors dream come true. [/QUOTE]
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