Factors Influencing Profitability of Calf-Fed Steers Harvestedat Optimum Endpoint
Mallorie F. Wilken, Adam L. Shreck, Larry L. Berger
Abstract
Mallorie F. Wilken, Adam L. Shreck, Larry L. Berger
Abstract
Four years of data from calf-fed steers were utilized in determining factors that affect profitability of cattle marketed at an optimum endpoint. Profitability was evaluated on a live weight basis assuming $112/cwt selling price and $180/cwt dressed price. Profit was compared as corn price and Choice-Select spread increased. Overall, carcass weight was the dominant factor in determining profitability. However, at $7 corn, feed efficiency had the most influence on profit. As expected, yield grade decreased and marbling score increased in importance as ChoiceSelect spread increased. Under these scenarios, profitability was greatly affected by hot carcass weight, with efficiency being the most important at higher corn prices.
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Four years of data from calf-fed steers were utilized in determining factors that affect profitability of cattle marketed at an optimum endpoint. Profitability was evaluated on a live weight basis assuming $112/cwt selling price and $180/cwt dressed price. Profit was compared as corn price and Choice-Select spread increased. Overall, carcass weight was the dominant factor in determining profitability. However, at $7 corn, feed efficiency had the most influence on profit. As expected, yield grade decreased and marbling score increased in importance as ChoiceSelect spread increased. Under these scenarios, profitability was greatly affected by hot carcass weight, with efficiency being the most important at higher corn prices.
Key concepts: Profitability index, Marbled meat, Profit (economics), Feeder cattle, Agricultural science, Beef cattle, Econometrics, Carcass weight