by Pops » Fri 19 Oct 2012, 13:18:26
$this->bbcode_second_pass_quote('', 'S')eriously though, I wonder where the grain price point has to be in order for small grass based livestock to out-compete the feedlot in terms of (after tax profit)/(man-hour); and what the minimal and optimal sizes are for that type of operation.
Good question. Let me give it a shot my ciphering skill might be up to that...
The best feed conversion in cattle is about 5:1 so when feed is more than 20% of the cost of beef, ranchers go broke for sure.
With a bushel of corn at $8 and 56# per bushel = 14¢/lb
Multiplied by 5 (feed conversion ratio) = 70¢ per pound of live weight gain.
Live cattle right now are $1.25/lb so that leaves 55¢/lb for OH&P up to the slaughterhouse door. Obviously there are a million other variables...
Good grass where I live in SW MO is maybe $1.5-2k/ac and can stand a stocking rate of maybe 3 acres per cow (if there is a good clover stand) and make a pound of live weight gain a day easily. So $6k / (365days *$1.25# live weight) = 13+ year payback at $450/ year cash - a 7% gross return. That's conservative, with not much regular fertilizing. You could up the forage amount with additional nitrogen.
Realize of course it isn't an either/or question, all calves live their first 6 months or so following mom around the pasture on a cow/calf outfit. Supermarket beef continues to be pastured in a "stocker" setup and is only only finished on grain the last few hundred pounds. Prime restaurant cuts OTOH are not only finished on grain but raised on it from a fairly young age as well. The amount of marbling is the key to flavor and tenderness and it comes from standing around eating concentrates. Burger for Mikey Ds is imported from the Brazilian Pampas I'd guess, grind in some downer dairy cows and maybe my dairy bulls along with pink slime and trimmings from good beef and voila!
http://oaes.pss.okstate.edu/agronstatio ... /woods.htmhttp://edis.ifas.ufl.edu/an217
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