I've been doing some number crunching today in an effort to find ways for our steer jocks to get more profit this coming year. As you will see, we cannot be more appreciative of our great supporters during the Kiowa County Fair.
I began by looking at last year's weigh-in's and sales. Here are the averages:
- 11 steers came to the fair
- Average beginning weight was 622 lbs
- Average ending weight was 1215 lbs
- Avg lbs gained per steer - 593
- Avg lbs gained per day - 2.86
- Beef convert 6 pounds of feed into 1 pound of gain. If this is true then the steers avg 17.16 lbs of feed per day.
- That's a total of 3552.12 lbs of feed for the 207 day feeding period.
So looking into next year, we can take these averages and begin to calculate what our costs might look like. On the average, a 500 lb steer will eat 3% of his body weight a day. That is approximately 12 lbs of grain a day and lbs of hay. An 800 lb steer at 3% is 20 lbs of grain and 4 lbs of hay. An 1100 will eat about 2.5% of his weight a day which is 24 lbs of grain and 4 lbs of hay. (I am using a chart that I will have a link to later.)
Given our averages from last year, those numbers will be about 13.73 lbs of grain a day and 3.43 lbs of hay over the course of the feeding period. Now for the fun part!
I called Colorado Mills and found out that a 50 lb bag of RGR is currently $9.25 a bag. Over the 207 feeding period, that would be about 2842 lbs or 57 bags @ $9.25 a bag = $526.
Our hay total would be around 710 lbs which is about $40. So on the average, to feed out your steer according to last year's numbers is around $566. Again, these are averages and could be higher or lower depending on your steer, the weather, your feeding program, feed prices, etc.
Now let's look at what the steers brought at the fair.
- 6 steers went through the sale
- The avg floor price was $1240
- The avg premium was $1250 for a total of $2490 a steer.
That seems pretty sweet but remember we haven't purchased a steer yet. Given the recent markets, steer calves are averaging $900-1050. So let's say you get one purchased for $1000. That takes your expenses up to $1566 not including anything but purchase price and feed. You also have to think about transportation, medicine, maybe you rent a corral, shavings, etc. You should be able to have all of that knowledge at your fingertips from last year's record book.
Just going off of projected costs at $1566 and what last year's average sale price was at $2490, you would make a profit of $924. Take away the premium of the sale and you made
-$326. Now you know why it is so important to get your thank you letters in on time!
Going with our benchmark of $924 of profit, how can we make it more? Few suggestions:
- Get as cheap a calf as you can! Just something as simple as buying one for $900 makes you $100 profit.
- Find anyway you can cut your inputs. If you rent a corral, see if you can arrange to work off that rent instead of paying out of your profits. Example: I hauled hay during Thanksgiving to help pay off my feed bill. Working makes you money, sitting around eating turkey and playing video games doesn't.
- Shop around for the best feed at the lowest cost.
- Put in the hard work! Have your steer broke and as tame as possible. Practice showing your steer and show up to fair looking professional. People are paying premiums on you and the kind of show person you are.
- Take care of your show equipment. Having to replace things you already purchased hurts your bottom line.
- Use your birthday or Christmas! Ask for show materials that will save you and don't be afraid to use hand me downs from older siblings.
- Do everything you can to keep your steer eating and healthy. Clean tanks, feed twice a day, bump your rations slowly, exercise your animal. The more you put into it, the better you'll do.
- Talk to livestock buyers and ask them to attend your local fair sale. Network!
- Be sincere and thankful when doing thank you cards. We have lost sponsors from kids not getting in thank you cards. It not only hurts you, but everybody else.
The steer project is tough. You are put out lots of money, work with the biggest animal, and hope for a good sale. Welcome to the real world! Just some simple tricks can help you maximize your profit margin.
Here is the link that I said I would include. Please read through it. Focus on the feeding portion of it.
I hope this is helpful. If I can do anything to help out please let me know! I want to see you succeed as much as anyone and remember that grand champion is great, but profit is better!
