Production Costs Hints

Production Costs Hints

UW Extension Livestock Team

Statewide Cow/Calf Seminars 2008

Production Cost Hints

Cow-calf Profitability is influenced by 4 factors

1. Yearly cost of keeping a cow

2. Number of cows exposed at breeding that calf

3. Weaning or yearling weight of calves

4. Price received for calves and cull cows


Feed costs are the biggest expense a cow-calf producer has to wean a calf



In most studies of cow-calf operations feed cost range from 55% to 80% of total costs



In most studies of cow-calf operations feed cost range from 55% to 80% of total costs

Of total feed cost the biggest variation between operations was in winter feed charges


Our “CHALLENGE” is to reduce feed charges without affecting cow body condition and future reproductive performance


In Wisconsin the period of time we have to winter feed is December 1st –May15th

or 165 days.


In Wisconsin the period of time we have to winter feed is December –April or 165 days.

During this period we have frozen ground and often have snow cover or mud


Ask Yourself these questions: Do I have adequate feed in storage for winter

feeding? Have I pre-purchased feed when prices were

low? Have I looked at energy and protein costs of

various feeds and compared them for value? Have I stockpiled forage for winter Grazing?


We enter spring with excess soil moisture


Reduce Inventory Early Sell Older Cows Sell heavier feeders Early Wean Calves

This reduces pressure on pastures

Do this before your neighbor since prices decline rapidly in dry areas where forced inventory reduction occurs

Production Cost Hints Market Stockers Early

Reduce by choice Animals still gaining Price is still favorable Buyers attitudes still good Sort off cattle by weight

Let current price determine the ones to sell (light vs. heavy

Early Wean Calves Reduces Cows Forage Needs Calves more efficient if fed direct Gives you larger window to

market calves


Have A Written Plan Include the Actions

you need to take to deal with Rising production costs or drought

Keep it Simple and easy to implement


Know Your Hay Needs

30 lbs per day x 165 days=4,950 lbs

4,950lbs/850 lbs=6 round bales per cow


Winter Grazing to Reduce Feed Cost:

1. Corn Stalk Grazing

a. Average 5000 lbs. of residue in irrigated corn fields

b. Average 2500 lbs. of residue in dryland corn fields

c. Primary difference is leaf loss

Production Cost Hints Rotational Grazing

Lane

Rest allows pasture to:

• Recover from grazing,• Rebuild energy reserves &

plant vigor• Increase forage production by

30%

1. Pastures are subdivided into

smaller areas (paddocks)

2. A portion of the pasture is

grazed while the remainder

“rests”

Strip Grazing in Fall


Graze stockpiled Forage:

Alfalfa-hay fields for last harvest

Rested cool season grasses (July-Oct rest)

Warm season grasses

Wheat, oats,rye, or barley planted in Aug/Sept

Sudan grass, pearl millet, forage sorghum seeded in July

Date Species 1993 1994 Mean

August 1 Buckwheat 2165 1340 1753

Sorghum-sudan 496 2917 1707

Annual ryegrass 2394 1206 1800

Forage brassica 4065 2588 3327

Oat 1867 3013 2440

Mean: 2197 2213 2205

August 15 Buckwheat 1778 1716 1747

Sorghum-sudan 650 2934 1792



Oat 2365 2471 2418

Mean: 1936 2613 2276

September 1 Buckwheat 0 368 184

Sorghum-sudan 0 0 0



Oat 1161 2050 1606

Mean: 580 1098 839

LSD (0.05)* 306 598

Production Cost Hints Stand Ability for various forages

Tall Fescue-good Big Bluestem-good Timothy-good Little Bluestem-good Orchard grass-fair Switchgrass-good Brome grass-poor Indian grass-fair Alfalfa-fair Red clover-poor


Consider Windrowing late in season Allows you to windrow graze Cows will harvest the crop in the field Manure will remain in the field Requires electric fencing or snow cover Provide only what the cows will eat in a

week


What about direct feeding Must meet the cows energy and protein

requirements Can be done with hay, silage and various

grains including byproducts Need to make sure you have adequate

bunk or feeder space


Consider Byproduct Feedstuffs Distillers Grain Brewers Grains Wheat Mids Grain Screenings Cannery Waste(Sweetcorn,carrots) Potatoes


Take advantage of lowest commodity prices based on energy and protein Corn at $5.00/bushel is 9 cents per lb

(one lb of corn has the energy of 2 lbs of hay)

Oats at $3.50/bushel is 10 cents per lb Round bales at $40 each(assume 3/ton

equals $120 per ton) are 6 cents per lb at $200 per ton the cost is 10 cents per lb or $65 per bale

Soybeans are $12 per bu. or 20 cents per lb


Needs of 1100 lb cow last 1/3 of pregnancy 10.3 Mcals of energy 1.6 lbs of crude protein


Needs of 1100 lb cow last 1/3 of pregnancy 10.3 Mcals of energy 1.6 lbs of crude protein

Needs of 1100 lb cow first 4 months after calving

15 Mcals of energy 2.6 lbs of crude protein

Production Cost HintsFeed Values of Common Feeds

Alfalfa

% DM Mcal/# % Protein

90 .94 16

Brome 89 .80 11

Orchard 88 .85 11

Straw 91 .70 4

Oats 89 1.3 12

Corn 88 1.5 9


For our examples we will use 1100 lb cow

If your cows are lighter or heavier you will need to reduce or add addition feed


Balance a ration using values from table and cow needs for energy and protein

Ration 1: corn, alfalfa hay 8 lbs of corn provides-8.2 Mcals and .7 lb

protein


Balance a ration using values from table and cow needs for energy and protein

Ration 1: corn, alfalfa hay 8 lbs of corn provides-8.2 Mcals and .7 lb

protein Still need energy and protein from hay


Needs: 10.3 Mcal 1.6 lb protein

Have: 8.2 Mcal .7 lbs protein

Need 2.1 Mcal .8 lbs protein


Alfalfa Hay: Provides= .94 Mcal and 16 %

Need: 2.1 Mcal and .8 lbs protein To meet Energy needs we need 2.3

lbs of hay(2.1divided by .94) but this will be short protein(2.3 x .16=.1/3 lb) so we feed 3 lbs of hay


Alfalfa Hay: Provides= .94 Mcal and 16 %

Need: 2.1 Mcal and .8 lbs protein Balance for protein

.8 divided by 16%=5 lbs of hay

This will meet protein needs and exceed energy(5 lbs x .94=4.7 Mcal)


COST on a Daily Basis 8 lbs corn at $.09=$..72 5 lbs hay at $.06===.30 Total cost $1.02 per day

Allow for 10% waste and DM conversion

$1.02 x 110%= $1.12 per day


If daily feed charges are $1.12 and we feed for 165 days our winter feed costs are:

165 x $1.12= $184 for the feeding period

We still need to add the cost of mineral and salt but we have accomplished our goal with winter feed costs


All Hay diet: Standard cow winter ration Feed 20 lbs of alfalfa/grass hay per

day(.85Mcal of energy and 13 5 protein) Provides 17 Mcal or energy

Provides 2.6 lbs protein

However, feed free choice most cows

consume 30-35 lbs of hay per day


Hay exceeds needs for energy and protein even allowing for waste

Cost at $120/ton is $.06 per lb or $1.20 per day or $198 for the winter feeding season.

However, fed free choice cows consume 30 lbs or more per day

The secret limiting consumption to 20 lbs


Cows Waste by eating over the top and throwing hay out

Keep Feeders as high as possible


Use round bale feeders or cone feeders

Weigh your hay bales and limit amount fed to 20 lbs

Limit access to free choice hay to 8 hours per day

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Production Costs Hints