  BeefTalk:
Beef Business Profit Involves Precious Management Skills
By Kris Ringwall, Extension Beef Specialist,
NDSU Extension Service
How would you increase net return to your cow-calf enterprise? That’s the
million dollar question.
The simple questions have been answered. The tough questions still need
answers--and those tough questions in the cow-calf enterprise involve the
development of new production systems.
In the cow-calf enterprise, the common denominator (at least what producers
speak most often about) is the weight of calves weaned. While weight is the
easily measured statistic, the weight of calves at weaning says a lot about
genetics and the forage provided during the calf’s growing season. Neither,
however, ultimately predict net profit..
Net return is very much dependent on the situation or environment from which
the question is asked. I recently asked my co-workers for some of their thoughts
about ways to improve the cow-calf production system, and their response
centered on three areas:
- Implement a 12-month pasture-forage system that evaluates nutrient
delivery, efficiencies and system economics.
- Find methods to reduce replacement heifer development and cow wintering
costs while maintaining or enhancing reproductive performance.
- Evaluate the effect of calving date, weaning age and pre-shipment
management on subsequent performance of calves in the feedlot.
Developing intensive and extensive cow-calf production systems to evaluate
these scenarios would be an exciting activity involving considerable time and
people.
The first response, the 12-month pasture-forage system, is based on the need
to effectively manage forage nutrient costs per month while maintaining or
improving the overall biological efficiency of the production unit. In this
case, the production unit is really not the cow, but the forage base. Various
combinations of complementary forage, feed resources and harvest methods will
all interact to ultimately maximize net return to the cow calf enterprise. If
you think of your own operation, of all the forage crops, do you know which
combination would provide you with the best growth on your calves and cows?
Research has shown it’s not just the type of forage. Optimum gains for
livestock depend on when forage is planted, when it is grazed and/or when it is
harvested for later feeding. Some of these scenarios lead into the second
response.
As total annual nutrient costs are a function of the cost per unit of
nutrient ingested and reproductive efficiency, what is the best method to reduce
replacement heifer development costs and cow herd winter feed cost? Do you know
what the two largest costs are for a cow calf producer? They are the cost of
replacement heifers and winter feed costs. Minimizing those two costs could
almost assure profit for the cow calf producer. To confound matters worse, to
really maximize profit in the cow-calf enterprise, timing calving, weaning and
finishing of the calves to fit your operation is critical. Calving and finishing
data indicate that calving date and weaning age have a marked effect on market
adjusted net return to the cow-calf enterprise.
Net return can be markedly affected by management practices that alter the
rate of gain and duration of time on feed.
It is a circle of interaction: knowing when to calve and not to calve and
understanding that weaning management can also influence the dollars available
for profit to the cow calf enterprise, particularly when calves are fed to final
harvest in retained ownership beef alliances. Those who think raising cows is
just opening the gate and letting bull in are grossly mistaken. Today’s
complex production and financial environments of the beef business require
skilled management and precision decision making.
Seeking the answers is a constant occupation for those trying to keep their
head on straight in the beef business. Good Luck.
May you find all your ear tags.
Your comments are always welcome at www.BeefTalk.com.
For more information, contact the North Dakota Beef Cattle Improvement
Association, 1133 State Avenue, Dickinson, ND 58601 or go to www.CHAPS2000.COM
on the Internet. In correspondence about this column, refer to BT0090.
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Source: Kris Ringwall, (701) 483-2427, kringwal@ndsuext.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu
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Graphic:
Three Key Questions in Your Quest
for Profit in the Beef Business
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* What's the best 12-month pasture-forage system
for nutrient delivery, efficiency and economics?
* What's the best method to reduce replacement heifer
costs and cow wintering costs while maintaining or
enhancing reproductive performance?
* What's the effect of calving date, weaning age and
pre-shipment management on subsequent performance
of calves in the feedlot?
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