Operating a Modern Cattle Feeding Enterprise
Procurement and Marketing
In many ways, buying and selling of beef cattle has a greater influence on feedlot profits than the feeding and management used when cattle are in the feedlot. Therefore, one should pay particular attention to these aspects of a beef feeding enterprise.
Procurement
Effect of shrink
The variation of shrink of newly purchased cattle can be unbelievable. Occasionally, cattle will arrive at the feedlot heavier than the purchase weight. This is the rare exception. Normal shrink will vary from 2% to 12%. The time of year, weighing conditions, and length of haul are all factors affecting shrink. Cattle coming from lush pastures will shrink more than those from dry or arid pastures. Cattle will shrink more during hot weather than cold weather. The amount of fill cattle receive prior to weighing will greatly influence shrink.
There are many commonly accepted ways to obtain fair purchasing weights, including the use of a 2 to 4% pencil shrink, overnight stands after hauling to market terminals, add on to deliver weights, and guarantees for maximum shrink. The longer the haul, the greater the shrink. More shrink takes place during loading and the first 25 miles of a haul than in the ensuing miles. Also, rougher roads and multiple starts and stops create more shrink than steady hauls on smooth roads.
Here are four ways to obtain fair pay weights:
- Buy from a reliable source.
- Insist pay weights be actual weight at the time the deal is closed.
- Check weight of feeders on arrival.
- Put the deal in writing.
Table 1
The Effect of Shrink on Feedlot Gains
(700 lb animal fed to 1100 lb) |
| Avgerage Daily Gain |
| Percent Shrink |
Purchase Weigh |
Arrival Weigh |
Final Weigh |
Weight Gain Required |
Req. to Mkt. in 150 days |
| 12% |
700 |
616 |
1100 |
484 |
3.23 |
| 9% |
700 |
637 |
1100 |
463 |
3.09 |
| 6% |
700 |
658 |
1100 |
442 |
2.95 |
| 3% |
700 |
679 |
1100 |
421 |
2.80 |
| 0% |
700 |
700 |
1100 |
400 |
2.66 |
Regaining Pay Weights
The length of time required to regain pay weights will depend on the amount of shrink, weather conditions, amount of disease and stress, and the amount and quality of feed fed after arrival at the feedlot. With top management, feeding conditions, and cattle with little shrink, it is possible to regain pay weights in 10 days or less.
Marketing
Too often profitable cattle are turned into losers by holding them to reach a better grade or a better market. It’s a fact that the fatter cattle get, the poorer the feed conversion. There’s a good reason for this; it takes over twice as much energy to put on fat as it does to put on lean meat. That’s why cattle should be marketed when they’re ready.
A cattle feeder can walk a fine line with a marketing program. If yearlings are fleshy when purchased, or if calves are pushed a little too fast through the growing (backgrounding) phase, they may be ready for market at lighter weights than the packer wants. Feeding them to gain another 50 to 100 pounds at this stage can cost aconsiderable amount more than the value of the gain.