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A Decision Tool for Improved Beef Cattle Production, Management and Marketing System Analysis. Emmit L. Rawls Professor University of Tennessee. Tammy L. McKinley Extension Assistant University of Tennessee. John C. McKissick Professor University of Georgia.

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a decision tool for improved beef cattle production management and marketing system analysis

A Decision Tool for Improved Beef Cattle Production, Management and Marketing System Analysis

Emmit L. Rawls

Professor

University of Tennessee

Tammy L. McKinley

Extension Assistant

University of Tennessee

John C. McKissick

Professor

University of Georgia

why construct a systems analysis tool for cow calf producers
Why construct a systems analysis tool for cow/calf producers?
  • Changes are occurring rapidly in beef supply chains.
    • Increased information flows
    • Emphasis on consistency, quality, safety
  • These changes are taking place at all levels, including the farm level.
  • Successful producers will identify profitable changes to enable them to continue producing.
beef cattle management and marketing systems
Beef Cattle Managementand Marketing Systems
  • An interactive analysis tool
  • Developed by a multi-state, multi-disciplinary team from the University of Tennessee and the University of Georgia
beef cattle management and marketing systems4
Beef Cattle Managementand Marketing Systems
  • Designed to…
    • Analyze an operation and estimate current production costs
    • Allow user to explore impacts of selected changes in production, management and marketing decisions
    • Use with help of Extension Agent
beef cattle management and marketing systems5
Beef Cattle Managementand Marketing Systems
  • General Information
  • Breeding
  • Forages
  • Management
  • Equipment
  • Marketing
breeding
Breeding

Information on all breeding stock is entered and used to calculate costs, cull cow income, and nutrient requirements in other sections of the program.

forages nutrition
Forages/Nutrition

Multiple forages can be selected and

acreage allocated based on use.

forages nutrition9
Forages/Nutrition

Calculated production based on yield response functions derived from research based data.

Grazing method

can be selected

for each pasture

and tons of dry

matter utilized

per acre will be

calculated.

Multiple fertilizer

sources and

application

rates can be

chosen for

each forage.

forages nutrition hay storage
Forages/Nutrition – Hay Storage

Storage methods are in most efficient to least efficient order.

A running total of forage available for consumption is calculated after storage and feeding method losses are deducted.

forages nutrition hay storage11
Forages/Nutrition – Hay Storage

Once tons of hay to be stored is calculated then the user can select the length of time the hay is to be stored (5 months or less or more than 5 months) and the feeding method (with or without a ring) and the appropriate losses will be calculated.

management
Management

Users can enter their health management program and calculate costs per head.

equipment fencing
Equipment – Fencing

Materials and annual costs can be calculated for permanent and temporary fencing.

equipment handling facilities
Equipment – Handling Facilities

Users can select components for handling facilities based on whether they are manufactured or site-built and calculate materials costs for each and the total facility.

marketing
Marketing

Costs of marketing method, i.e. commission, hauling, and shrink are all accounted for when calculating the net market price.

Net market price is calculated based on premiums and discounts for frame, muscling, breed, horns, and sex.

marketing comparison of marketing methods
Marketing –Comparison of Marketing Methods

Users can compare two marketing methods based on commission, hauling, and both estimated and pencil shrink associated with each.

joe farmer s operation
Joe Farmer’s Operation
  • Current situation
    • 60 mature cows and 10 heifers
    • Majority of calves born between February and March
    • Average calf weaning weights
      • From mature cows – 450 pounds
      • From replacement heifers – 425 pounds
joe farmer s operation18
Joe Farmer’s Operation
  • Current situation
    • 250 acres of tall fescue pasture and hay
    • Feeds 210 round bales of hay over a 135 day winter feeding period
step 1 general production analysis

While producing over

100 pounds less of

calf per exposed

female than

benchmark value

Almost twice the

number of grazed

pasture acres used

Step 1: General Production Analysis
grazed forage production vs herd needs with base system
Grazed Forage Productionvs. Herd Needs with Base System

1 – low weaning weights

2 – low calf crop percentage

Total direct costs of forage production* is $7,248.50

* excluding machinery and equipment costs

step 3 evaluate possible changes
Step 3: Evaluate Possible Changes
  • Apply 38 pounds of nitrogen per acre on pasture 1 for increased spring grazing
  • Stockpile fescue on pasture 2 for increased fall and winter grazing
increase spring grazing25
Increase Spring Grazing

Dry matter produced

increased to 1.07 tons per acre

Total direct costs of forage production* is $9,502.50

* excluding machinery and equipment costs

increase spring grazing26
Increase Spring Grazing

To economically justify this change...

— Sell more pounds of feeder calf

$2,254 increase in costs

$ 0.90 per pound

= 2,504 pounds

— How?

Increase weaning

weights by

49 pounds per calf

Increase calf crop

percentage from

74% to 83%

OR

stockpile fescue28
Stockpile Fescue

Dry matter produced

increased to 37.6 tons in Sep/Oct

Total direct costs of forage production* is $10,602.30

* excluding machinery and equipment costs

stockpile fescue29
Stockpile Fescue

To economically justify these changes...

— Sell more pounds of feeder calf

$3,354 increase in costs

$ 0.90 per pound

= 3,727 pounds

— How?

Increase weaning

weights by

72 pounds per calf

Increase calf crop

percentage from

74% to 87%

OR

summary
Summary
  • The Beef Cattle Management and Marketing Systems program…
    • Can be used to analyze a current operation and the possible production, management and marketing changes and their impacts
    • Allows producers working with their Extension Agents to explore alternatives and plan for the future of their operations