You may know what you want out of your operation, but do you record what you put into it? Knowing the difference between what you get and what you give is essential for profitable decision-making. This is the purpose of calculating cost of production.
The Canadian Cow-calf Cost of Production Network launched in 2020 with the objective to benchmark different production systems across Canada. Baseline data was collected from 115 producers who attended virtual focus groups between January and March 2021. This created 25 cow-calf and 3 dairy-beef production systems. These benchmarks are the first set in a standardized pan-Canadian process looking at the many types of cow-calf production systems across the country. The network only requires data to be submitted every five years; and should reduce response burden for producers while allowing for improvements to be tracked into the future. Results from the 2020 reference year are now available online. Continue reading
How three 5% changes increase profit by more than 300%
A “precision rancher” is someone who, recognizing that agriculture operates on small margins, utilizes every technology, production practice and management technique that is appropriate for their climate, soil zone and production system in order to maximize their profits.
Producers make dozens of decisions every season to support the reproduction and productivity of their cow herd and the quality and yield of their forages, knowing that there are trade-offs with many choices. Incremental changes have great potential, both positively and negatively, to impact the bottom line. Monitoring and managing productivity, price and input costs can significantly increase competitiveness by helping ensure that valuable, incremental opportunities are not ignored.
The 5% Rule: Productivity, Price and Costs
In terms of net income, economists have found that the difference between the top 25% of agricultural operations and the average operation is typically small, as little as 5% on inputs, production or price. If you change input costs, productivity and price each by 5%, it makes a tremendous impact on the bottom line. Continue reading
The major economic benefit of preg-checking is the cost-saving of wintering open cows. However, it has been noted that preg-checking is not always worthwhile, as the increased revenue due to higher prices in the spring and the additional weights put on in the winter could more than offset winter feeding costs.
The economics of preg-checking depends on the cull cow market price, the management system employed by the producer, feed and overhead costs, and veterinary costs. As market dynamics change every year, it is important to consider the current market situation when making preg-checking decisions.
Alberta cow prices experienced an impressive rally in the first half of 2017 but the seasonal decline has been sharp since Continue reading
Canfax Research Services (CRS) invites proposals for Beef Production Economics. The deadline is June 24, 2016 at 11:59 PM MT.
CRS is partnering with the Beef Cattle Research Council (BCRC) whose mandate is to establish research and development priorities for the Canadian beef cattle industry and manage national check-off funds allocated to research.
The BCRC developed the second Beef Cattle Industry Science Cluster under Agriculture and Agri-Food Canada’s Growing Forward II Strategy. The Beef Cattle Industry Science Cluster was a Continue reading
This is a guest post by Canfax Research Services.
The feedlot and packing sectors have been very successful at driving productivity and efficiency gains through larger carcass weights, average daily gains, feed to gain ratios and yield in order to decrease per unit costs and maximize profits.
Are things really so different for the cow/calf sector? Continue reading