A Decision Tool for Improved Beef Cattle Production, Management and Marketing System Analysis

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A Decision Tool for Improved Beef Cattle
Production, Management and Marketing System
Analysis

• Tammy L. McKinley
• Extension Assistant
• University of Tennessee

Emmit L. Rawls Professor University of Tennessee
John C. McKissick Professor University of Georgia
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Why construct a systems analysis tool for
cow/calf producers?

• Changes are occurring rapidly in beef supply
  chains.
• Increased information flows
• Emphasis on consistency, quality, safety
• These changes are taking place at all levels,
  including the farm level.
• Successful producers will identify profitable
  changes to enable them to continue producing.

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Beef Cattle Managementand Marketing Systems

• An interactive analysis tool
• Developed by a multi-state, multi-disciplinary
  team from the University of Tennessee and the
  University of Georgia

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Beef Cattle Managementand Marketing Systems

• Designed to
• Analyze an operation and estimate current
  production costs
• Allow user to explore impacts of selected changes
  in production, management and marketing decisions
• Use with help of Extension Agent

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Beef Cattle Managementand Marketing Systems

• General Information
• Breeding
• Forages
• Management
• Equipment
• Marketing

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General Production Information
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Breeding
Information on all breeding stock is entered and
used to calculate costs, cull cow income, and
nutrient requirements in other sections of the
program.
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Forages/Nutrition
Multiple forages can be selected and acreage
allocated based on use.
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Forages/Nutrition
Calculated production based on yield response
functions derived from research based data.
Grazing method can be selected for each
pasture and tons of dry matter utilized per acre
will be calculated.
Multiple fertilizer sources and application rates
can be chosen for each forage.
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Forages/Nutrition Hay Storage
Storage methods are in most efficient to least
efficient order.
A running total of forage available for
consumption is calculated after storage and
feeding method losses are deducted.
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Forages/Nutrition Hay Storage
Once tons of hay to be stored is calculated then
the user can select the length of time the hay is
to be stored (5 months or less or more than 5
months) and the feeding method (with or without a
ring) and the appropriate losses will be
calculated.
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Management
Users can enter their health management program
and calculate costs per head.
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Equipment Fencing
Materials and annual costs can be calculated for
permanent and temporary fencing.
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Equipment Handling Facilities
Users can select components for handling
facilities based on whether they are manufactured
or site-built and calculate materials costs for
each and the total facility.
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Marketing
Costs of marketing method, i.e. commission,
hauling, and shrink are all accounted for when
calculating the net market price.
Net market price is calculated based on premiums
and discounts for frame, muscling, breed, horns,
and sex.
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Marketing Comparison of Marketing Methods
Users can compare two marketing methods based on
commission, hauling, and both estimated and
pencil shrink associated with each.
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Joe Farmers Operation

• Current situation
• 60 mature cows and 10 heifers
• Majority of calves born between February and
  March
• Average calf weaning weights
• From mature cows 450 pounds
• From replacement heifers 425 pounds

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Joe Farmers Operation

• Current situation
• 250 acres of tall fescue pasture and hay
• Feeds 210 round bales of hay over a 135 day
  winter feeding period

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Base Forage Program and Estimated Forage
Production
Field Name Forage Acres Fertilizer (N, pounds/acre) Spring Fall Fertilizer (N, pounds/acre) Spring Fall Tons dry matter/acre Total tons dry matter
Hay field Tall fescue 50 57 0 2.21 110.50
Total Hay Total Hay Total Hay Total Hay Total Hay Total Hay 110.50
Pasture 1 Tall fescue 115 0 0 0.79 90.85
Pasture 2 Tall fescue 65 38 0 1.07 69.55
Pasture 3 Tall fescue 20 0 0 0.79 15.80
Total Pasture Total Pasture Total Pasture Total Pasture Total Pasture Total Pasture 176.20
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Step 1 General Production Analysis
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Step 2 Current Forage Program vs. Herd Needs
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Grazed Forage Productionvs. Herd Needs with Base
System
1 low weaning weights
2 low calf crop percentage
Total direct costs of forage production is
7,248.50
excluding machinery and equipment costs
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Step 3 Evaluate Possible Changes

• Apply 38 pounds of nitrogen per acre on pasture 1
  for increased spring grazing
• Stockpile fescue on pasture 2 for increased fall
  and winter grazing

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Increase Spring Grazing
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Increase Spring Grazing
Dry matter produced increased to 1.07 tons per
acre
Total direct costs of forage production is
9,502.50
excluding machinery and equipment costs
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Increase Spring Grazing
To economically justify this change...
Sell more pounds of feeder calf
2,254 increase in costs 0.90 per pound
2,504 pounds
How?
Increase weaning weights by 49 pounds per calf
Increase calf crop percentage from 74 to 83
OR
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Stockpile Fescue
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Stockpile Fescue
Dry matter produced increased to 37.6 tons in
Sep/Oct
Total direct costs of forage production is
10,602.30
excluding machinery and equipment costs
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Stockpile Fescue
To economically justify these changes...
Sell more pounds of feeder calf
3,354 increase in costs 0.90 per pound
3,727 pounds
How?
Increase weaning weights by 72 pounds per calf
Increase calf crop percentage from 74 to 87
OR
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Summary

• The Beef Cattle Management and Marketing Systems
  program
• Can be used to analyze a current operation and
  the possible production, management and marketing
  changes and their impacts
• Allows producers working with their Extension
  Agents to explore alternatives and plan for the
  future of their operations

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The End