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Do you know who earns the most in beef production? Why is raising cattle so hard and losing money?

Time:2023-02-03 09:59:56 author:Small size Read:359次
Do you know who earns the most in beef production? Why is raising cattle so hard and losing money?

There are about 17,000 cattle farms in the United States, but fewer than 500 that specialize in calves. There are so many beef cattle farms, but only a small number of calf producers. Relatively speaking, this business is a highly competitive business activity. Most beef cattle producers do not directly produce calves. Most of them are from the market. Buy calves, weighing between 100 and 200 kg, into their feedlot. Most calves come from farms and ranches. Like any other farming business, running a beef business and making a profit is the only thing that will keep you in business. How much profit you make depends a lot on your ability to sell, in fact monopolizing Mavericks is a lucrative business, and marketing Mavericks through the best channels and at the best time can maximize your profits. Most producers just sell their beef. Producing the easiest calves to raise is largely profitable. It is worth noting that the calves that are popular in the market contribute to profitability. According to USDA research data, beef producers have a well-defined market segment. , consumers ultimately make pricing decisions. Many beef retailers make the product because consumers want it. However, the feedlot cannot do all the work, and many jobs are split and forwarded to professional enterprises for production. By understanding how the beef cattle market works, it helps beef producers and can better bring high profits. The value of a calf is defined based on the expected price of beef, and as the expected price of finished cattle rises or the cost falls, the price of raising calves will be more profitable. An 800kg finished bull is 2.4 times the price of a 200kg calf and 1.6 times the price of a 600kg calf. A $1 increase in the price of a finished bull will result in a buyer paying $2.40 more for a 200kg calf. The cost of raising calves also affects the price for the breeder. The cost of adding a kilogram of earnings to a calf depends on the cost of feed, non-feed costs such as interest, and the efficiency of the calf itself. For many years, most live cattle were slaughtered cattle and were sold evenly by the pen. That is, the feedlot pays one price for all the cattle in the pen. Nearly 60 percent of slaughtered cattle are sold by carcass, each of which is individually weighed and graded based on quality, marbling, and percentage of retail meat. Since different yields and quality grades have different prices, each carcass ends up with an individual or custom price. The end result is that for many beef cattle producers, their hard-earned profits are inferior to those of calf producers. While current calf producers earn higher profits, the overall supply and demand for beef determines the price of feeder cattle. If there are no beef cattle producers who work hard to raise finished cattle, consumers will not be able to eat high-quality beef. It can only be said that there are many factors that affect the price of beef, but at present, farms that only produce calves are more profitable than those that produce beef. Well, this is beyond the control of the calf producer. But by understanding these factors, farms can gain a sense of the market and plan accordingly. In beef production, producers at each stage are relatively important. Feeding beef cattle and calf production, as well as slaughtering all contribute to consumers, but the market is not based on the size of the contribution to determine the profit for these producers, but how to seek benefits and avoid disadvantages. Video of points to watch click here


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