BREAK-EVEN SELLING PRICES FOR WINTERED AND FED CATTLE
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1 BREAK-EVEN SELLING PRICES FOR WINTERED AND FED CATTLE EM 3909 JUNE 1975 COOPERATIVE EXTENSION SERVICE COLLEGE OF AGRICULTURE WASHINGTON STATE UNIVERSITY PULLMAN In cooperation with the United States Departent of Agriculture Issued in furtherance of the Acts of May 8 and June 30, 1914, by the Washington State University Cooperative Extension Service, J. 0. Young, Director
2 Break-even Selling Prices for Wintered and Fed Cattle by Willia H. Pietsch* Making profits or reducing losses in the cattle business these days requires careful econoic analysis. To the feedlot operator, an iportant question is what he can pay for feeders in light of feed prices and the expected selling price of finished stock. To the rancher who produces calves or yearlings this exact question is of utost iportance. It is critical to aking decisions about whether to sell to a feeder, sell directly to slaughter, or continue to own the stock either in a growing or finishing progra. The accopanying tables are intended to assist cattle producers in their decision aking. For the cattle feeder, after estiating the approxiate cost of gain for cattle on feed and anticipated selling price, the tables provide a calculation of the axiu price you can pay for lot replaceents and still break even. Break-even in this case eans all costs are covered but that no profit or anageent return will be realized. For the rancher producing calves or yearlings these tables can be used to evaluate several alternatives. First, as you prepare to arket your anials, it is iportant to know the axiu price you can expect a feeder to pay in light of current costs of gain and expected finished cattle prices. Second, soe ranchers ay wish to consider retained ownership alternatives such as stocker operations and/or feeding, either their own or on a custo basis. In either case, it is iportant to know the break- even selling price which akes retained ownership at least as profitable as iediate sale. In using these tables, an iportant factor is the deterination of cost of producing gain. In soe cases this can be arrived at fro your own records or by asking local feeders. In others, it will be necessary to ake estiates based on current costs for feed and other supplies. A saple budget is included for your convenience in estiating cost of gain. You are encouraged to develop your own situation in the "y case" colun. After estiating the total cost per pound of gain, the use of the tables is straight forward. For exaple, fro the table of break-even selling prices of a 400 pound steer fed to 600 pounds (page 4), assue a laid in purchase price of $32.00 per cwt. for feeders and 48 per pound of gain. Follow the 48 per pound of gain line across to the $32.00/cwt. feeder purchase price colun and you will note a break-even selling price for the 600 pound steer of $37.33/cwt. You can deterine the axiu price that can be paid for feeders of particular weights in siilar fashion. Assue that a 650 pound steer fed to 1050 pounds will sell for $43.00 and the cost of gain will be 55 per pound. Using the table of break-even prices for 650 pound steers fed to *Washington State Cooperative Extension Service Econoist, Pullan, Washington.
3 E.M Page pounds, (page 11), follow the 55 per pound of gain line until the break-even price nearest $43.00 is located. You will note that this figure is found in the $36.00/cwt. feeder price colun. As a coparison based on the sae assuptions about finished cattle prices and cost of gain, you can deterine fro the table of break-even prices for 450 pound steers fed to 1050 pounds (page 9) that nearly $28.00 per cwt. could be paid for 450 pound steers. Coputation of break-even selling prices are by the following forula: SP (G X C) + (Wl X P) w2 Where: SP G c p wl w2 Selling price per cwt. Hundredweight of gain added during feeding period Cost of producing gain in cents per pound Purchase price of feeder per cwt. Weight at beginning of feeding (cwt.) Weight at end of feeding (cwt.) As an exaple of this calculation, consider a 400 pound steer fed to 600 pounds, assuing 48 per pound of gain and an initial price of $32 per hundredweight placed in the lot. SP SP SP (2.0 X 48) + (4.0 X 32) $37.33/cwt. WHP:jf 5/75 WSU COOP. EXT. SERVICE
4 E.M Page 3 BEEF FEEDING BUDGET Exaple My Case Beginning weight Ending weight Weight gained Feed Cost/Head 80 bu. $120/ton.8 ton hay@ $50/ton 263 lbs. $12.50/cwt. Minerals and salt $ Total Feed Cost $ Non Feed Cost Yardagell ($0.08/hd./day) Death loss, taxes, vet. Interes/ (anial & feed at 10%) Selling costs and shrink Total Non Feed Cost $ Total Cost of Gain/Head (line 2 + line 4) $ Cost Per Gain (line 5 gain) $.67 1/ Represents a charge for labor, feedlot facilities and achinery. ll Based on $30.00 cwt. for feeder and the feed bill for one-half the feeding period of 270 days.
5 BREAK-EVEN SELLING PRICE/C 400 Pound Steers Fed to 600 Pounds Total Cost/ FEEDER PURCHASE PRICE/Cw7 DELIVERED Gain in Cents $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 $40 $42 $44 $46 $48 $ ! E ' lf, Lr "' E L:O ' L! "' L: "" lf l! L:O , L: M l: L! L t ' l: L:.OO L: L: n (' I "'C..
6 P RE.AK-J:VEN SELLING PFICE/Cv/T 400 Pound Steers Fee to 650 Pounds Total Cost/ FEEDER PURCHASE PRICE/CWT DELIVERED Gain in Cents $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 $40 $42 $44 $46 $48 $ S ! l: lS l:l; f>9 l< l: E l: 1. 4f " l: ! (: Lt9. S co "" g I , ! "'.. ( " ! ! f ! l: l: E !; l! :8.31 l: f : :' : i l: : !
7 BREAK-E\'F.N SELLING PRICE/Cl:T 400 Pound Steers Fed to 1050 Pounds T'tal Cost-/- FEEDER PURHASE PRICE/CYIT DF.LIVEP D Gain in Cents $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 $40 $lf2 $44 $46 $48 $ G )_ to ) (, _ l E L: L: L. l.oo L: [ !: so c L: ?.3 49.! "' <0 0 < Lf I ! L: i S [ "' Ol G /: l ' so [ ' (' Ll so ! l l _ C l E ('1 60.r f ! ' P L !1, 10 6L
8 Total CostT BREAK-fVF.N SELLING PRICE/CWT 450 Pound Steer3 Fed to 650 Pounds FEEDER PURCHASE PRICE/Cw7 DELIVEF D Gain in Cents $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 $40 $42 $44 $l:6 $48 $ l.e L:O [,0.46 l: : l: 3li Of L: <; () L:.OO , L: L: L: L:O.15 L: l:4. 31 lf5. 69 L: l: L:O F 1; l; ,o.oo L:l f 4Lf. 4f l: L:O !.4.77!: L: ! L: f L! ES "' co L; fa I.., so "' L:O.OO L: () [, 3.f L: sc.! L:. ') L, L:2.M 43.8.) L: ! lj L: fl L S ' , : (> L:5. 38 l:6. 77 l: f, L:O lf4. 31 L: L:8. 4F. 6.1).85 5! fi G c; () 39.08!: [, (, lj8. 77 sc.! f L,l;. 92 l! ') ' ( L:5. 23 L!6. 62! :
9 BREAK-EVEN SELLING PRICE/C 450 Pound Steers Ped to 700 Pounds Total Cost/ FEEDER PURCHASE PRICE/Cw'T DELIVERED Gain in Cents $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 $40 $42 $44 $46 $48 $ L: ? fi [, so ) _ L b, L} '? L} " L,2.29 L, L,g L, so. 71.., -- (Q Lf " Lf L Q I L: l! 47.'?3 L,g , IC "' L:O. 57 lll (X) l: " /i L: L: b, B L:O L, I [, L,.OQ L: L: lf L, L: f 4" L, l: L: ! " ; " L,3. 93 Lf L L, l: lt L: SL, Sl l, ( " so.sc ll; M< C l:3.50 4l:. 79 lf6.07 l.:7.3e l: ,
10 BRFAK-EVE!' ELLH G FF.ICF /IHT L 50 Pound Steer Feel to 1050 Pcunds Total Cost/ FEEDER Pl1RCHASf PRICE/CPT DELIVERFD Gain in Cents $20 $22 $24 $26 S28 $30 32 $34 $36 S38 $40 St 2 $44 $46 $4P :;so en i ! ! '? L:O l; e J n n ! '? 43. : l l / l: 34.(\f) l: l l: fi J l: J t,o a C J E l S l: l; l:f !: l: ( l: l l: ,,0(} ( :4 5" J L:O l f ) ? l<: L: l: f..OO J li l: /, co /, "' 0 co J.l C I 55 4() !, ( l: n.zo c!l l:4.86 l:5. 7J Q.14 5c.on "' co l:l: L!fi ]l 48.0C L:6.no 4f l " P l: () 44.fl J l:f: /,Fl.29 4() () /, L, J Rf L.-.OO 54.8(: P6 l!7. 7J /, S E.OO l: E.OO l; ll, 56.0( LI J ll Q n L,,OO f J L: ()0 5R f en f.OO E L: f, E () ] l ! EO.NI 60.8(; 6:
11 BREAK-EVEN SELLING PRICE/CHT 500 Pound Steers Fed to 1100 Pounds Total Cost/ FEEDER PURCHASE PIUCE/Cwi DELIVERED Gain in Cents $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 ---$40 - $42 $44 $46 $48 $ ) ' J [j [j5 3l; [jq.31' [j Q l:l f: [j3.27 4lf.l8 [j L:O '.' [j l: l: l:o E C: l:s l: l: l: w l:6. 55 l: l: lf. 36 l: , co I l:l !: fi Sl "' lf co "' l: lt !f )( !:4.36 lt li l f l: ' l: /l , l: (, J.!< so. 3(: t? fi q!) q f..Jf so !) SO. 3E E O E LJ5 56.3f Hi f.o.oo
12 BREAK-EVEN SELLING PRI\.E/C 650 Pound Steer feel to 1050 Pounds Total Cost/ FEEDER PURCHASE PRI\.E/C'WT DELIVERED Gain in Cents $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 S40 SL,2 $44 $46 $M'. $ R c;: L 1. 7l _ c;: l f, :! Rn c;: () lc;: I ! c;: c;: R /i c;: f I:Sc;: c;: f: t.f.oo c;: l &6 48c;: ]_() c;: F SOc;: t c;: c;: t.o.oo c;: n.S w <D SSe;: g 56c;: n , 57c;: so. 19 5J c!l '" 58c;: L:O L, c;: c;: l b t file;: b L:S b Sb c;: t c;: ! t c;: J c;: c;: ,, Lf c;: l " c;: ' SO.f c;: Q,81 51_, c;: l t. Sf lc;: t.s.62 lf c;: LJ.3.52 t b c;: ) c;: (, ij )
13 BREAK-EVEN SELLING PRICE/CWT 650 Pound Steers Fed to 1100 Pounds Total Cost/ - FEEDER PURCHASE PRICE/Cvtr DELIVERED Gain in Cents $20 $22 $2 4 $26 $28 $30 $32 $34 $36 $38 $40 $42 $44 $46 $48 $ fi l!j l,q f ! !.95 q L q lfl ! qq ql l: q q L, q q lf f q().l t, () J q t, (' L:Z ' w lfl lf. 1q llf EE <D fi L:Z.18 L,J. 3E t, I !? lq , "' ' !L: "' fi l: !; ' q [l. 18 [fo t, "i.05!; ? l: q ?. l: q t, E l:6. 32 l: l:g. 8 C) $.6l: lf ! e (: !: Q5 l: f:c).)(l (' l f,5. 1 B l: ()() <.' 4C.86 lf «; l:6. 77 l: : f tfz l 4. cz l; > 48. 3(: L, C 41. 6f. 42.8f 4l,. C5 L S (.41 l: l P l: E l:.&.co (': 43.f8 l:4. f!f, 4f l:f ? ) :s.so P.f :D.. cc '.,
14 BREAK-EVEN SELLING FRICE/C"I-iT 700 Pound Steers fed to 1100 Pounds Total Cost/ FEEDER PURCHASE PRICE/.CHT DELIVEF.ED Gain in Cents $20 $22 $24 $2i> $28 $30 $32 $36 $38 $40 $42 $44 $1,6 $48 jlg_ 36c; ; ' f ; c; ,27 4" q c; ( , % : " lf ld') : f, 91 l: i. 31i l1S ( l:o : c; l; ;. 73 q],'! L : ; l:o ( q., : f. on c; : ! q f. I) I) ; w /; : I i (,, 1e () l: !: w :0.91 /f l: lf :6. 1E ( : lf '48.0(' q M q9, S "" ; l: qb" l: ) q : l: l: : t,s ; JR ql).f q qt,.on r l: q :4.73 l; ! so. J :::..,
15 BPEAK-EVE 8FLLING PFJC'E/C.HT 850 Pound Steer!ec to 1100 "'otr1s Total Cost/ - FEEDER PURCHA:O:E PP.ICE7n-n PELIVEFFP Gain in Cents $20 $22 $24 $26 S28 $30 $32 nt $36 $38 $40 $42 S46 4(- S4C $ P f fi. no f ,q f.c (' (: ) fil! 44. p F F <l [, l! lf Z.6!l Me ;2.91 4! ! l;o.os l l: l: L.9.77 soc l} fl f lc l; ! f! so l: (' w on co 0 co sse ! I.., Q) (; Ml f <0 (1) 57c 28.4J lf J L!O 'i. 41 4f ' p t.,.4,0t; l! C' lt (; ? [! F lR file ! (ifl l:lf, J l! L:O f>. 77 4f' C '. )8 '! ( F l;7.0(' 41LSS sn.nq () 44.1!.. 45.fi c f ' E (i. 8(, C!:3.' F..! ? 38.f-4 L:O. l f l:6.3f 47, OJ or llf F. 40.4] L M1,59 4?.. 16 L l (l L t R 'Sl,(; () f ()8 R L f 4lf. 4 ) L sn.r:.q q L.4.64 f.. e L F <l 37. ll; i (1 51.o: "'
16 t,... BFFAK-FVFT SFLLU!G F'RICE/CHT 350 Founc:i J!eifE:'rs feel to Pounds Total Cost/ ----==--FITDER.flWCI:ASF FFIC[/CI.'T ronnu F_D -=--== ===--=====--=- Gain in Cents. ]:Q. $22 $2i_ $26 $2.8 $30 $32 SJL, $36 _ 38_ $40 S42!! $L 6 $40 _j50 _ , ) Rc ] F ! ! Ec E F soc lf C SC I ,!f ! ; ! E F E c so.oo J S7.! c D.oo ! E Dc E Ic s & J
17 BREAK-EVU: SFLLING PRICf/Cl round Heifers Fed to 950 Pounds Total Cost/ FEF.Df.R Pt!F.CilASF PRICE/Cl:T D_!:LIVF.F.ED Gain in Cents $20 $22 $24 $26 $28 $30_ S32 $3lf $3E $38 $40 $42 $44 $4E $48 $ !(, c lf ll ! f ld [ lc;: c;: l l:s t!0.63 4! () l: E ll '6 46.0(' 41i i l1 l: l: t,9c;: L:6.OS SOc;: E [13.00 l: l:s.s3 4t ) 41' c l; l:5.2e V l:s. 84 ' 6.rs l} "' co l: l: SO.E g l; l:4.47 l:s l: I "'D l: 1. E l:f..7l ( so b, ! l: l}s.63 41i l: a; l, E t, l: so SB c l:s.42 4f> l:fl f: L E l: [}O c ll : f.7c () l SS.f3 5f l; f SF..2l ? l: Sl:.OO SS.f.S : C.ll : ( c lt E0.79 6! ' E f0.53 f: f lf s <;R f :!
18 BRF.AK-FVEJ: SHLH'G FF.ICI/CWT 400 Pound Heifers fed t o 1000 Pcll1ds Total Cost/ Gain ir. Cents $20 $22 $24 $26_ $28 $30 _$32 $3 4 $36 $3R $lf0 $42 $44 $4( $ FEEDER P!CilA F PRICE/CHT_nf.iivEFi.U -- 36<;: t o. eo <;: l:0.60 q 1. q <;: q q q2, 80 39<;: /; q q),q0 40<;: q :. 60 ll qf,, OO 41<;: q LqC <;: l; l q5, 20 43<;: q0.20 q J q c; ,q l:o.oo q ,qQ lf.80 1; q5c;: l;().f() /; ;3. 80 L: ( c;: q0,40 t, !: l: q 7<;: l; L: l;6jn q8.2c 48<;: ; ; EO 42.q L,lf, L:5. 60 L,f,. 4(1 /;7. 2(' q9c;: l,0, /; l;f L: SOc;: L, l: L:4. I; I" /; ,q <;: [ L: l:s.oo q5.80 L: L: <;: L,4.0C q q <;: q L,g q Sqc;: lf4,q w SSe;: q ll q l() CD 56<;: I 57<;: q q q,20 58<;: /; 3.60 l, q6, so.oc EO "' 59<;: q ; ,q0 60<;: q zn ,q <;: l;s,qo L; ; q(l <;: 1;5.20 l: Lf G3c;: q c;: q q8, ,q <;: EO <;: lf C 58.CO <; E <;: ; ) <;: ,qf') c;: ,q Lf qo ) <;: Z J <;: C 73<;: ss.ao !'1 6! () <;: ( ) F <;: q f :: -o!
19 BRF.AK-EVF]I! SELLHl\. FFICF /C'.tT 500 Pound lieifers fed to 950 Pounds Total Cost/ -- FEEDERPURCPASF-PPICFJi:.W.! DELIVERED_ ---- Gain in Cents $20 ('22 $2 4 $26 $28 $30 $32 $34 $36 $38 $40 - $42 j!!!: $46 $48 $ :58-2s:'cn 79":01) I. ----:rr:wi- jj.13"9" ) l!] [;3.37 3h ll l; ! f C ) l:l J ,ll l:o l:4. SE ; : 4J.89 l: l: l:o :, ll l: R l; q3, lil.l q3.21 4lf, 2( fi l: lc ' c l: GO !: q !: w < l:o ] <0 I l.2f l:2. 32 lf !: , "' : [; l:4.s "' lll l:3. 2f ll ; l:j. 95 4Q,QQ l: l: : ( i l 15. 7l ll : / C l,, lf5.os l: l: c t, l; l:9.16 sr !: f>.47 l: f.3 50.f> /f l; Sit c 43.2l /, Sl1, f (5.79 l,e, i 46.2f, M.63 l;s l: , ) E ! SO.J f f. l: ll lj c : : s : l: E0.79 f.l.84,....
20 1.>.. ---====--=--- FFFl1FR- Total Cost/ Cain in Cents._ $20. J3.3 - $Z-- $& 36<; 37<; 38 39<; 40 lie L,2<; lc <; (4<; E5 G E9.; (' so l:2. 50 l: so l; l. so lf lfl.so so 47.so & ) so ll l:3.00 1:,4.00 lf4. so Lf9. oe so.so l: /:,3.00 L,3. 50 l, lt6. so 47.or l: BPFAK-EVFI: SFLLILG FriC[/CI'T 5CO Pound l'oifers fee to 1000 rounds.!'urc'_l- PRIC[/f'V::!_'_ DELIVFF.FD --====--=--=--==---====--= : $ " lll l l:6. 50 l 7.00 lf 7. so $ ) l:o.oo l, 1.50 lj ll3. so () l:s $ so L: }.so L:2.00 ll lj L: $36 $38 $40 42 _ SM, ).!:!S:. JM.,()_ l,l l:l,. 50 M>.OO () () l:3. 00 l,4.0c l: ( (' l, l L: OIJ 51. so (\() 39.51) l; l,l.so () L L, ) ( L:4. 50 l,5. SO L:7. 5(' SR L:2. 50 l:3.00 4Lf L: so fo.oo fo.so L:2. or L, l,]. so so.co 51. so SP.0 5<.: El CO so "' I i "' <0
21 RHF/IK-1'\'H' SELLING FFICE/CHT 600 Pound Peifer Fed tc 950 Pounrls Total Cost7 r. e.in in Cents $:'0 $22 $24 $26 2R FEEDER PURCEA:O:E FRICE/CVT DELIVEF.ED $30 $32 $34 36 $38 $40 $42 $44 $46 $68 $ c /J SS () , l: lo ' \ l; ; () f ' fl. 6R "' l:o. 53 l: () i ! < l,o. 32 l:o l f R l:o.ll l: [, l,. J E J J l:l L:2.47 l l, l: co l: l:o p,o l, l:5. 58 l:s lfi.6p lf 39.1) l.lif l:3.! l; ') lll. lj. l:l.47 L: () Mi.ll L:8.84 l: "1.2f 41.63!: l l: f ( , OS 41./ l.l f l,; l l. 74 l: fi l:5. 26 l f5. 63 M.OO 4(: l: ? l; H f. 52.(: i.l l:7.2f 7.fJ3 4P..OO s st fi.32 4fi l:7. 79 l; so. 74 s J w g I 1\.) 0 66 E lc; 72 73c ( i8 l:c'.os l: l. 16 l:l l: ! Sl: i8 l:l ; l:z L6.21 4l /i L: f. 21 l: (. f: ll l 6. 7l "7. 1] (\() ' lf flo so l.li F 52.1 ( RCl : S.F ": f f ; P ! b :.9. 2 J "....
22 -4 ",,., EP.ELIK-EVH; SFLI.ING PPICE/CHT 600 Pound Eeifers Fed to 1000 Pounds Total Cost/ FEEDEP Pt:RCHASE PRICE/CV!T DELIVEHD Po una of Gain in Cents $20 $22 $24 $2E $28 $30 $32 $34 $36 $38 $40 $42 $4lf $46 $48 sso 36.; lf ; c ; ; l,, 80 41<; <; FO lf C E.OO <; lf E.40 l,].60 lf5c EO ll !JO ; l: C ll l 7. EC ; lf <; () ? soc lf l,s SlC 32.lf , <; l,o,oo <; C l1. on <; l1s sse 3lf Q w CD 0 56<; (' l CD 57<; l, S.fi0 4fi.8(] 48.1')() <; lll ! 59<; l:8.eo <; l: ( Sl.fiO <; <; () l: <; <; l, l ( Sl: ; (' C ; ll, l,6. 8( <; lf l; Sl1, <; () <; <; l: l;9.fi C (' so.oo sj.no C lf Ml Sl.fiO <; (' C lf fi C I -o Assistance fro Washington State University is available to all persons, without regard to race, color, or national origin.
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