HOME HELP FEEDBACK SUBSCRIPTIONS ARCHIVE SEARCH TABLE OF CONTENTS		QUICK SEARCH:   [advanced] Author: Keyword(s): Year:  Vol:  Page:

This Article Full Text (PDF) Alert me when this article is cited Alert me if a correction is posted Services Similar articles in this journal Alert me to new issues of the journal Download to citation manager Citing Articles Citing Articles via Google Scholar Google Scholar Articles by Dietrich, R. A. Articles by Schake, L. M. Search for Related Content PubMed Articles by Dietrich, R. A. Articles by Schake, L. M.

Effects of Size and Degree of Feedlot Utilization on Fixed Costs in Commercial Feedlots¹

Texas A&M University, College Station 77843

Abstract

Feedlots with 10,000-head-or-more capacity in the Southern Plains (Texas and Oklahoma) generally enjoyed a cost advantage over smaller lots, especially those with less than 1, 000-head capacity. Feedlots with a one-time feeding capacity of 1, 000 head experienced total annual fixed costs of 2.4 cents per pound (5.3 cents per kilogram) of gain compared to 1.4 cents per pound (3.1 cents per kilogram) of gain for feedlots with a 10,000-head capacity.

One of the major contributors of lower annual fixed costs per pound (kilogram) of gain in the larger feedlots was the level of feedlot utilization. Feedlots with 10,000 head and over capacity generally exhibited utilization rates of almost 80% compared to utilization rates of 40% and lower for feedlots with less than 1,000 head capacity.

The competitive advantage due to size declined when feedlot utilization rates were held constant at consecutively higher levels. When feedlot utilization rates were held constant at the 25% level, annual fixed costs were approximately 2 cents per pound (4.4 cents per kilogram) of gain higher for feedlots with 1,000 head capacity than for feedlots with 35,000 head capacity.

¹ Technical Article Series Number 9437 of the Texas Agricultural Experiment Station.

² Departments of Agricultural Economics and Animal Science, respectively.