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Retained Ownership Outlook. February 24, 2010 Eric A. DeVuyst David Lalman Brian Williams. OSU Beef Value-Added Team. Recent survey shows that less than 5% of Oklahoma beef producers are participating in value-added market programs
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Retained Ownership Outlook February 24, 2010 Eric A. DeVuyst David Lalman Brian Williams
OSU Beef Value-Added Team • Recent survey shows that less than 5% of Oklahoma beef producers are participating in value-added market programs • Retained ownership and participation in process-verified programs can add $25 or more to producer returns
Retained ownership outlook • Calves born fall 2009 & weaned June 2010 (long weaned) compared to some typical retained ownership strategies Compared to sale-at-wean Vac-45 (preconditioning) +$29/head Vac-45+60 days on grass -$25/head Vac-45+grass+feedlot -$24/head Vac-45 + feedlot -$15/head
Retained ownership outlook • Calves born spring 2010 & weaned October 2010 (long weaned) compared to some typical retained ownership strategies Compared to sale-at-wean Vac-45 (preconditioning) +$26/head Vac-45+110 days on wheat +$46/head Vac-45+wheat+feedlot +$31/head Vac-45 + feedlot -$8/head
Some added profits opportunities • Tools producers can use lock in some profits • Futures • Options • Livestock Gross Margin Insurance • Livestock Risk Protection Insurance
Analyzing your profit potential from retained ownership • Software tool available at: http://agecon.okstate.edu/faculty/publications/3445.xlsm