![]() Feed price protection can be accomplished by making the feed purchase, forward purchase contracts, or using Call Options for some grain products. Price protection tools, like Put Options and Livestock Risk Protection (LRP) insurance, can help producers protect themselves from declines in the feeder cattle market. If the cost of gain increases to $1.50 per pound, feeding until May increases the feed costs to $630 and the breakeven price to $1,720.If the March Feeder Cattle price drops to $170/cwt, the final price for the steer becomes $1,360.Consider the following changes to our examples: For illustration purposes, consider a ration that results in an average daily gain of 2 pounds on 500-pound steers, with a cost of gain of $0.90 per pound.įactors affecting the estimates and decisions include grain and forage prices, seasonal trends, and livestock market changes. Using actual cost-of-gain numbers is essential in the decision-making process. The calculation of these costs further aids the decision-making process.ĭetermine your ration to make these decisions. Once the feed availability evaluation and the feeder calf's potential income are determined, the cost of gain needs to be calculated. The October 17 Feeder Calf report listed 474-pound Medium-Large 1 Steers sold for an average price of $234.28/cwt, calculating an $1110 value per steer. At the time of this article, the March contract is trading near $180/cwt, and the May contract is near $188/cwt. The November Feeder Cattle futures contract for calves is steady, with upward tendencies, and remains throughout Spring 2023. The supply and demand issue is something producers need to consider. Cattle-on-feed inventories show many lightweight calves going to feed. The SDSU Extension Forage Inventory and Demand Calculator can help determine how many tons of feed are needed to maintain the cattle herd.Īnother consideration is the drought situation. Things to Considerįeed inventories and requirements are one of the first considerations. Selling or feeding because that is 'what we always do' is not an economically sustainable situation. These decisions include options to sell calves at weaning, wean them and hold them for 45 days, background until spring, or retain ownership until the calf reaches yearling or fed cattle weights.Įvaluate these decisions from a business perspective, given the current feed costs and feeder cattle market. Fall brings many weaning and selling time decisions. The most important trading venue for futures contracts on live and feeder cattle is the Chicago Mercantile Exchange.Feeder calf sale numbers are ramping up across South Dakota. The USA is also the largest consumer of beef (25.6%), followed by the EU (15.3%), Brazil (13%) and China (12%). The next largest producers are Brazil (15.5%), the EU (14.8%) and China (12.09%). In 2003, 49,789 million tonnes of beef were produced globally, most of that in the USA, which has a market share of 25 per cent. There are also rules regulating the administration of colostrum, the housing climate, the size of the compartment, the input of feed (straw, hay or maize silage) or the haemoglobin level of the calves’ blood. Calves over the age of eight weeks may not be kept on their own and must have sufficient space available to them. The German order on the protection of animals and the keeping of production animals prescribes strict rules for the keeping of fattening veal, however. Fattening veal are separated from the mother shortly after birth and have a life expectancy of just five to six months. ![]() Fattening veal are male and female calves that are not needed for breeding purposes. There are also some breeds such as Fleckvieh, however, that can be used for both meat and milk production.Ī special area of feeder cattle rearing is fattening veal. Mainly male cows are fattened and slaughtered. There are also different breeds for milk production. The meat from these cows is valued for its marbled meat, which shows the intramuscular fat content, however. Whereas some breeds have a high weight with a very low fat level, other breeds grow more quickly but do not reach the same weight. ![]() There are different breeds that fulfil these criteria, however. For this reason, cattle breeds that grow quickly and have a high ability to put on weight are particularly suited to meat production. ![]()
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