### Beef Cow-Calf Management

```Cost of Gain vs Value of Gain
Darrell Rankins, Jr.
2011 – New Rules
Input costs –
up,
up, up
volatility is high

Fuel


Everything is transported by truck
On farm usage as well
2011 – New Rules

Prices received – also up, up, up


Quite volatile as well
We cannot change this so we must
determine the value of the gain and
manage the cost of gain
Value of Weight Gain

Wean 580-pound calves


Background for 45 days
Assumptions



8:1 feed conversion
Now have 680-pound calves
Value of Weight Gain

680-pound at \$121.18/cwt


\$824.02
580-pound at \$130.94/cwt

\$759.45

\$824.02 - \$759.45 = \$64.57/100 pounds

Value of gain = \$64.57/cwt

Based on AL prices 4-22-2011
Cost of Weight Gain


Fixed Costs
Variable Costs





Vaccines
Deworming
Chute charge
\$10-\$15/head – 45, 60 or 75 days no different
Feed changes by day
Cost of Weight Gain


Max is \$0.65/pound of gain
10:1 conversion



8:1 conversion



100 pounds of gain requires 1,000 pounds feed
Feed must be <\$130/ton
100 pounds of gain requires 800 pounds of feed
Feed must be <\$162.50/ton
6:1 conversion


100 pounds of gain requires 600 pounds of feed
Feed must be <\$216.67/ton
Cost of Weight Gain

Rankins AAES projects




6.2 to 9.7 on free-choice single feed + hay
9.6 to 11.8 on diets containing low-cost
roughage
4-weight calves much more efficient than 8weight calves
Ionophores improve feed conversion

Rumensin, Bovatec
Final Thoughts



Performance of calves is extremely important
in determining cost of gain
ADG for 45 days is HIGHLY dependent on
weighing conditions
Longer periods to higher weights need to be
considered
Questions??
```