Arkansas - Agricultural Communication Services - University of ...

Arkansas Animal Science Department Report 2001
Results and Discussion
The steer and heifer financial reports are summarized in
Tables 1 and 2, respectively. Average steer and heifer gross
income per head was $878.05 (range = $593 to $1,102) and
$821.01 (range = $614 to $1,008), respectively. The feedlot
returns for steers and heifers averaged $616.52 and $555.11,
respectively, whereas the calculated returns averaged $112.30
(range = $-138 to $259) and $130.35 ($-51 to $258),
respectively.
The fall of 1999 was exceptionally dry and windy
which may have contributed to an increase in sickness. A total
of 45 calves (14.6%) were treated for sickness. The average
medicine cost per sick calf was $31.86. The medicine cost for
the entire group averaged $4.65 per head. The health status of
cattle in the feedyard usually has a major impact on performance
and profit. Healthy steers had higher feedlot returns
($631) than steers that became sick ($522; P < 0.01). In addition,
healthy steers had a higher dressing percentage (64.2%)
than steers that became sick (62.0%; P < 0.001). Significant
differences (P < 0.001) were detected between healthy steers
and steers that became sick for final weight (1,210 lb vs.
1,159 lb), average daily gain (3.37 lb vs. 3.03 lb), feed cost of
gain ($0.40 vs. $0.44), days on feed (166 vs. 175), carcass
weight (776 lb vs. 715 lb), carcass value ($888 vs. $813),
total cost of gain ($0.47 vs. $0.58), and percent grading
Choice (sick calves = 24% and healthy calves = 50%). Only
8% of the healthy calves graded Standard whereas 41% of the
sick calves graded Standard.
The steer and heifer average off-the-truck arrival
weights were 650 (range = 440 to 920) and 610 lb (range =
490 to 680), respectively. The steer average daily gain, average
days on feed, feed cost per lb of gain, and total cost per
lb of gain were 3.33 lb (1.57 to 4.77), 167 days (146 to 190),
$0.41 ($0.30 to $0.75), and $0.49 ($0.35 to $0.99), respectively.
The heifer average daily gain, average days on feed,
feed cost per lb of gain, and total cost per lb of gain were 2.78
lb (1.93 to 3.78), 176 days, $0.46 ($0.39 to $0.60), and $0.56
($0.45 to $0.83), respectively.
The average steer carcass weight, ribeye area, dressing
percentage, yield grade, and fat thickness were 768 lb (567 to
1,021), 12.4 in 2 (9.0 to 16.1), 63.8% (54.5% to 70.8%), 2.93
(1.09 to 5.63), and 0.42 in. (0.12 to 1.16), respectively. Fortysix
percent of the carcasses graded Choice whereas 40% and
13% graded Select and Standard, respectively. A few carcasses
graded Prime (0.4%). Carcass value for Choice-Yield
Grade 2 carcasses was $117.50, $119.00, $120.50, and
$115.50 for March 23, April 12, April 26 and May10 harvest
dates, respectively.
The percentage English, Continental and/or Brahman
breeding was determined for each calf. Carcass of steers that
were at least 50% English, no more than 50% Continental and
less than 25% Brahman were sorted into one group and those
steers that did not satisfy the breed-type criteria were placed
in a second group (Table 3). Calves that fit the breed-type criteria
graded 65% Choice compared to 35% Choice for the
calves that did not fit the breed-type criteria. After reviewing
the data, there appears to be enough evidence to support the
recommendation that market cattle should be composed of at
least 50% English, no more than 50% Continental, and less
than 25% Brahman.
Listed below are six significant factors that affected the
return over specified costs in the 1999-00 Feedout Program.
Factors are listed from the most important to the least
important.
Factors Affecting Returns Over
Specified Cost
1. Hot Carcass Weight
2. Days on Feed
3. Quality Grade
4. Yield Grade
5. Medicine Cost
6. Dressing Percentage
1. Hot Carcass Weight – The relationship between hot
carcass weight and feedlot returns over specified cost was
positive. That is as hot carcass weight increased so did feedlot
returns. The more carcass pounds sold, the greater the
gross income and feedlot returns. Table 4 shows the relationship
between hot carcass weight, total cost of gain, average
daily gain and feedlot returns over specified costs. Hot carcass
weight discounts were observed for carcasses weighing
less than 550 lb and greater than 950 lb.
2. Days on Feed – Cattle were sold on March 23, April
12, April 26 and May 10, 2000. There was a negative relationship
between days on feed and returns over specified cost.
This means that on the average, the longer that cattle were on
feed the lower the returns (Table 5). A factor that affected the
relationship between days on feed and feedlot return over
specified costs was the price difference between Choice and
Select quality grades on two slaughter days. Early in the
spring, there was a $3 per carcass cwt. discount between
Choice and Select but on May 10 the spread was $7 per
carcass cwt.
3. Quality Grade – Cattle that graded Prime, Choice,
Select, and Standard had feedlot returns of $560, $557, $507,
and $399, respectively for the past two feedouts (1998-1999
and 1999-2000). Marbling is the main factor that affects a
calf's ability to grade Choice. Three main factors that affect
marbling are: (1) the genetic ability to marble; (2) the maturity,
or the physiological age, not the chronological age; and
(3) diet. Some cattle breed associations report marbling
EPD’s in their sire summary. Carcass traits such as marbling
are highly heritable; therefore, selecting high marbling EPD
bulls can impact the marbling ability of their progeny. Breed
type can also influence a calf's ability to grade Choice.
4. Yield Grade – As yield grade increased from 1 to 4,
feedlot return decreased ($565, $521, $523 and $414 for yield
grades 1, 2, 3 and 4, respectively).
5. Medicine Cost – Healthy calves had higher dressing
percentage (64.2% vs. 62.0%) and higher feedlot returns over
specified costs ($631 vs. $523) than calves that were treated
for illness. Healthy calves had a calculated return of $134
more than sick calves.
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