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

1. 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

2. 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.

3. 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

4. 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

5. Beef Cattle Managementand Marketing Systems • General Information • Breeding • Forages • Management • Equipment • Marketing

6. General Production Information

7. 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.

8. Forages/Nutrition Multiple forages can be selected and acreage allocated based on use.

9. 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.

10. 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.

11. 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.

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

13. Equipment – Fencing Materials and annual costs can be calculated for permanent and temporary fencing.

14. 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.

15. 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.

16. Marketing –Comparison of Marketing Methods Users can compare two marketing methods based on commission, hauling, and both estimated and pencil shrink associated with each.

17. 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

18. 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

19. Base Forage Program and Estimated Forage Production

20. 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

21. Step 2: Current Forage Program vs. Herd Needs

22. 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

23. 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

24. Increase Spring Grazing

25. 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

26. 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

27. Stockpile Fescue

28. 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

29. 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

30. 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

31. The End