Posted by LAA on July 04, 2011 at 08:30:51 from (86.51.147.113):
In Reply to: Beef Prices this fall posted by Keith Molden on July 04, 2011 at 04:41:13:
Cattle are at an all time high and projected shortages of calves for the next couple of years, but, if the economy in general does not improve soon beef prices could suffer. As far as making a profit feeding 8 weight steers it depends on what you have produced yourself to feed them because cattle that size take up to 10 pounds of dry matter feed per pound of gain and if you feed cattle what you are really selling is corn, corn silage, supplement, hay and what ever else is in your ration, just as when your grazing calves you are selling grass, no grass, no profit. The successful commodity cattle feeders operate on the ''sell/buy'' principal, buy replacement cattle on the same day (more or less) as you sell your ready cattle and the price should equal out, comparetively speaking, leaving the cost of gain and rate of gain to turn a profit, or loss. There was a better chance for small operator profit up until the mid 70's because calves usually sold at a discount to fat cattle and, at the time, there were still thousands of independent packing plants in the USA and competition for the fed cattle was tighter than it is today.
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