STOCKER CATTLE: Fishing For A Profit

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STOCKER CATTLEFishing For A Profit?
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STOCKER CATTLEPriced To Make A Profit

• Dr. Walt Prevatt
• Extension Economist Professor
• Triennial Stocker Conference,
• August 26-27, 2005
• Auburn University

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Factors Affecting Stocker Profitability

• Location
• Price Margin
• Season Grazed
• Destination
• Uniformity
• Cattle Cycle
• Weight Gain
• Labor
• Interest Rate
• Feedstuffs

Health Number of Head Weather Markets Forage
Quality Forage Quantity Supplements Management Shr
ink Experience

• Frame
• Muscle
• Implant
• Sex
• Dehorn
• Death Loss
• Breed
• Facilities
• Reputation
• Buyers

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Factors Affecting Stocker Profitability

• Cost of Production
• Performance
• Market Prices

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Factors Affecting Stocker Profitability

• Dont Forget About The Cattle Cycle!

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Factors Affecting Stocker Profitability

• Dont Forget
• About The
• Seasonal Feeder Price Trends!

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Based on stocker steers, med. lg., No. 1, Oct.
to Apr. 400-750 lbs., 1979-2005. Assumes 40/cwt.
cost of gain.
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Based on stocker steers, med. lg., No. 1, Oct.
to Apr. 400-750 lbs., 1979-2005. Assumes 40/cwt.
cost of gain.
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Four Approaches To Making A Profit From Stocker
Cattle

• Stocker Enterprise Budget
• Breakeven Feeder Cattle Price
• Maximum Stocker Purchase Price
• Set and Accept A Price Objective

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Stocker Cattle Priced To Make A Profit

• Stocker
• Enterprise
• Budget

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Stocker Cattle Priced To Make A Profit

• Stocker Enterprise Budget
• Winter Grazing (200 days)
• 675 Stocked Per Acre
• 350 Stocker Calves October
• 735 Feeder Cattle April
• 2.00 Average Daily Gain
• 60 Days Backgrounding
• 30 Days Supplemental Feed

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Stocker Cattle Priced To Make A Profit
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Stocker Cattle Priced To Make A Profit
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Stocker Cattle Priced To Make A Profit

• Whats My
• Feeder Cattle
• Breakeven Price?

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Feeder Cattle Breakeven Prices
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Feeder Cattle Breakeven Prices
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Feeder Cattle Breakeven Prices
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Feeder Cattle Breakeven Prices
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Feeder Cattle Breakeven Prices
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Stocker Cattle Priced To Make A Profit

• Whats the Maximum Stocker Price
• I can afford to pay?

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Whats the Maximum Stocker Purchase Price?
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Whats the Maximum Stocker Purchase Price?
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Whats the Maximum Stocker Purchase Price?
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Whats the Maximum Stocker Purchase Price?
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Stocker Cattle Priced To Make A Profit

• Set and Accept
• A Price Objective

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Stocker Cattle Priced to Make a Profit

• Summary

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Stocker Cattle Priced To Make A Profit

• Cost of Production
• Performance
• Market Prices

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Stocker Cattle Priced To Make A Profit

• Buyem right
• Feedem right
• Sellem right

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Stocker Cattle Priced To Make A Profit

• If you can
• Identify and buy undervalued stockers
• Minimize health problems and death loss
• Provide high quality and low cost feed
• Achieve reasonable weight gains 300
• Market feeders for their full value

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STOCKER CATTLEPriced To Make A Profit

• Dr. Walt Prevatt
• Extension Economist Professor
• Triennial Stocker Conference,
• August 26-27, 2005
• Auburn University

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STOCKER CATTLEPriced To Make A Profit

• Dr. Walt Prevatt
• Extension Economist Professor
• Triennial Stocker Conference,
• August 26-27, 2005
• Auburn University

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Strategies To Manage Stocker Cattle Production
and Market Risks

• Be a low-cost producer
• Monitor production practices
• Diversify enterprises
• Be capable of retained ownership
• Be capable of using price protection

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