Guidelines for Estimating Shortkeep Feeders - 2003 - Manitoba Agriculture, Food and Rural Initiatives

Livestock values in this document may be subject to change as the market responds to the BSE situation. However, it is important to base your decisions not only on market information, but also on the cost of production for your particular operation.

Cattle feeding is a high risk business requiring large amounts of short term capital to buy feeder cattle and feed. With cyclical price variations for both livestock and feed, successful management invloves careful consideration of costs, projection of markets and sound judgement.

The following budget is an estimate of the costs of production encountered in finishing beef cattle in a farm feedlot situation. The purpose of this budget is to assist Manitoba livestock producers to calculate their own cost of production and take into consideration the factors that should be included when budgeting to determine breakeven prices.

The assumptions on which costs are calculated are clearly defined in the supporting pages. When interpreting these costs for an individual situation, adjustments may be required. Note that on farm feed costs are based on market prices at the farm. It is assumed that all feed is grown on the farm, except for supplements. Each assumption must be examined and adjustments made where necessary, to apply to the producer's own situation.

Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of production of the Manitoba cattle industry. Interpretation and utilization of this information is the responsibility of the user. If you require assistance with developing your individual budget, please contact your local MAF Farm Management Specialist or Livestock Specialist.

SHORTKEEP CATTLE PRODUCTION COST SUMMARY - 2002 (Based on feeding 500 steers)
A.	OPERATING COSTS
	1.	Feed Costs		Cost/Head	Total	Your Farm
		1.01	Ground Barley	196.25	98,125	__________
		1.02	Barley Silage	26.38	13,190	__________
		1.03	Supplement	14.95	7,475	__________
		Total Feed Costs		$237.58	$118,790	__________

	2.	Other Operating Costs
		2.01	Feeder Cost	867.38	433,688	__________
		2.02	Straw	5.50	2,750	__________
		2.03	Veterinary Medicine & Supplies	10.90	5,450	__________
		2.04	Annual Fuel & Repair Costs	4.66	2,332	__________
		2.05	Utilities	3.60	1,800	__________
		2.06	Marketing Costs	63.98	31,990	__________
		2.07	Insurance	7.16	3,580	__________
		2.08	Manure Removal	6.00	3,000	__________
		2.09	Barn & Office Supplies	0.40	200	__________
		2.10	Death Loss	5.03	2,513	__________
		Subtotal Operating Costs		1,212.19	606,093	__________
		2.11	Operating Interest	24.54	12,270	__________
TOTAL OPERATING COSTS				$1,236.73	$618,363	__________

B.	FIXED COSTS
	3.	Depreciation
		3.01	Buildings	5.55	2,775	__________
		3.02	Machinery & Equipment	12.00	6,000	__________

	4.	Investment
		4.01	Buildings	1.70	848	__________
		4.02	Machinery & Equipment	2.25	1,125	__________
TOTAL FIXED COSTS				$21.50	$10,748	__________

TOTAL OPERATING AND FIXED COSTS				$1,258.23	$629,111	__________

C.	LABOUR COSTS			12.50	6,250	__________

TOTAL COST OF PRODUCTION				$1,270.73	$635,361	__________

Cost per lb of gain sold				$/cwt.
		Feed Costs		$49.50		__________
		Operating Costs		$80.57		__________
		Operating & Fixed Costs		$85.05		__________
		Total Costs		$87.65		__________
Breakeven Selling Price
		Operating		$92.99		__________
		Operating & Fixed Costs		$94.60		__________
		Total Costs		$95.54		__________
Breakeven Purchase Price
		Operating		$114.10		__________
		Operating & Fixed Costs		$111.57		__________
		Total Costs		$110.10		__________

Click here for Detailed Shortkeep Cattle Production Cost Worksheet. ASSUMPTIONS Average daily gain (ADG) was assumed to be 3.5 lbs/day. It was assumed that the feeder steer weighed in at 850 lbs. shrunk weight, finish weight was estimated at 1400 lbs (1330 after 5 % shrink). Days on feed:157 Investment in feedlot facilities and equipment was assumed to handle 500 head.

2003 Guidelines for Estimating Shortkeep Feeders For Weight Range of 850-1400 lbs. Based on feeding 500 Steers

SHORTKEEP CATTLE PRODUCTION COST SUMMARY - 2002 (Based on feeding 500 steers)

ASSUMPTIONS

2003 Guidelines for Estimating
Shortkeep Feeders
For Weight Range of 850-1400 lbs.
Based on feeding 500 Steers

SHORTKEEP CATTLE PRODUCTION COST SUMMARY - 2002
(Based on feeding 500 steers)