cost of gain vs value of gain

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Cost of Gain vs Value of Gain Darrell Rankins, Jr.

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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 - PowerPoint PPT Presentation

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Page 1: Cost of Gain vs Value of Gain

Cost of Gain vs Value of Gain

Darrell Rankins, Jr.

Page 2: Cost of Gain vs Value of Gain

2011 – New Rules

Input costs – up, up, upvolatility is high

Fuel Everything is transported by truck On farm usage as well

Page 3: Cost of Gain vs Value of Gain

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

Page 4: Cost of Gain vs Value of Gain

Value of Weight Gain Wean 580-pound calves

Background for 45 days Assumptions

ADG of 2.25 lb/day 8:1 feed conversion

Now have 680-pound calves

Page 5: Cost of Gain vs Value of Gain

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

Page 6: Cost of Gain vs Value of Gain

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

Page 7: Cost of Gain vs Value of Gain

Cost of Weight Gain Max is $0.65/pound of gain 10:1 conversion

100 pounds of gain requires 1,000 pounds feed

Feed must be <$130/ton 8:1 conversion

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

Page 8: Cost of Gain vs Value of Gain

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

8-weight calves Ionophores improve feed conversion

Rumensin, Bovatec

Page 9: Cost of Gain vs Value of Gain
Page 10: Cost of Gain vs Value of Gain

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

Page 11: Cost of Gain vs Value of Gain

Questions??