J. Anim Sci.
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J. Anim Sci. 1977. 45:1213-1221.
© 1977 American Society of Animal Science
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Systems Approach to Management for the Cattle Feeder1

Larry D. Trede2, Michael D. Boehlje2 and Mitchell R. Geasler3

Iowa State University, Ames 50011

Abstract

Systems analysis procedures using linear programming were applied to a typical catde feeding farm in die Midwest. The various factors affecting feeding profits were identified and included in the model. Five different housing systems ranging from confinement to open lots were included. Three diets differing in the proportion of concentrates and roughages were tested on yearling cattle. Empirical analysis were also conducted on the impact of changes in feed efficiency and/or average daily gain upon the optimal ration and scheduling program for yearlings in confinement.

The results indicate that profits varied little among the different feedlot facilities evaluated. Differences in profits were due largely to the differences in fixed costs of the systems. When feed efficiency improved by 10%, net income improved by 5.8%. Similarly, when feed efficiency decreased by 10%, net income declined by 5.9%. In both situations, the same diet was fed. With a 10% increase in average daily gain, profits increased by 4.8% compared to a 7.2% decrease in profit when average daily gain decreased by 10%. Thus, there is a larger penalty for feeding slower gaining catde compared to the payoff of feeding faster gaining cattle.

Footnotes

1 Journal Paper No. J-8434 of the Iowa Agriculture and Home Economics Experiment Station, Ames.

2 Department of Economics, Iowa State University, Ames 50011.

3 Cooperative Extension Service, Michigan State University, East Lansing 48823.






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Copyright © 1977 by the American Society of Animal Science.