Agricultural News
Oklahoma Gold Still Makes Dollars and Sense to Your Bottom Line!
Fri, 25 Jul 2008 18:02:50 CDT
Oklahoma State University Beef Cattle Specialist Dr. Glen Selk tells us that while it costs more than ever- added gain through targeted supplement feed programs are still profitable. Here's his article on the subject:
For years we have generalized that the value of each pound of added gain on young cattle is about 55 to 60 cents per pound. Today’s high grain prices have changed that concept because the market place is willing to pay for gain on pasture or outside the feedlot. How much is the market willing to pay for added pasture gain?
Looking at the current market news report for Oklahoma City, it is possible to get a handle on the current value for adding weight to weaned calves and/or yearling stocker cattle. The prices evaluated in this example all were for “medium frame, number 1 muscling” steers. The weight range was from 405 pounds to 933 pounds. If you do the math, the overall value of each pound of added weight gain from 405 to 933 was 85 cents per pound. The value of added weight gain for just weaning weight calves from 405 to 632 pounds was 79.5 cents per pound.
In the case of the older stocker steers weighing between 729 pounds and 933 pounds, the average value of each pound of gain was 88 cents per pound. In every case, these cattle all brought more than 1 dollar per pound, but due to the price slide, the value of added weight is less than the sale price.
As we calculate the cost effectiveness of supplementation in the late summer months, we must keep in mind that the overall market may be higher now than it will be in October and November especially for weaning weight calves. Nevertheless this gives us a guideline that any practice that we incorporate such as late summer supplementation must provide additional weight gain for less than about 80 cents per pound to be profitable.
Research here at Oklahoma State University has shown that the conversion rate of a 14% crude protein grain feed provided at the rate of 4 pounds per head per day produced an additional 0.74 pounds of weight per day. In other words, it took 5.4 pounds of the supplement to provide a pound a weight gain. This research was conducted on stockpiled, fertilized bermudagrass. Just to break even, the feed would need to be purchased and delivered to the steers for $296/Ton. The Oklahoma Gold high protein supplement program uses 38 to 45% protein cubes (including an ionophore) fed at the rate of 1 pound per head per day. The total added gain is less and the supplement more expensive per ton, but this is more efficient. Research on native grass has shown that we should expect to need about 2.3 pounds of Oklahoma Gold supplement per pound of added gain. If this supplement can be delivered to yearling cattle at less than $695/Ton, it should help the bottom line. Read more about the Oklahoma Gold supplementation program by clicking here.
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