By Blake Jackson
University of Missouri Extension has unveiled a new tool, the Beef Feeding Profitability Tracker, designed to help cattle producers manage risk and improve financial decision-making.
This free Excel spreadsheet allows users to track input costs for various groups of cattle, providing valuable insights into profitability.
Developed by MU Extension agricultural business specialist Rachel Hopkins, the tool aims to enhance cash flow management, which she emphasizes as "the lifeblood of a business." Cow-calf producers can utilize the tracker to determine the value of their calves at weaning and analyze the return on investment for preconditioning.
A comprehensive summary of all cattle lots provides a break-even price, enabling producers to identify areas for cost control. "If the cost of gain is getting higher, it can help producers figure out what to do to control costs," Hopkins explains.
Users input various production costs, including vaccine expenses, feed management fees, interest, and medicine. Yardage, encompassing facilities and equipment costs, is also calculated. The feed worksheet allows for quarterly updates, capturing price fluctuations.
Hopkins advises, "If you are using feed raised on your operation, always use the larger number: production cost or market value." This ensures that one operation does not subsidize another. She also highlights the importance of strategic purchasing: "When buying stockers and backgrounders, money is made on the buy. Overpaying for cattle can have a huge impact on profitability."
The customizable tool is suitable for operations of any size, from five to 200 head. "Buying cattle to add weight and resell or to finish and send to slaughter are both supported by this tool," Hopkins notes. "In addition, producers adding weight to thin cull cows and bulls can use this tool to analyze the profitability and efficiency of their operation."
The Beef Feeding Profitability Tracker includes a printable record sheet for initial cattle processing, simplifying data entry into the spreadsheet. The tool is available for download on the University of Missouri Extension website.
Photo Credit: gettyimages-baranozdemir
Categories: Missouri, Livestock, Beef Cattle