Optimizing costs in beef production strategies

At Kansas State University's Beef Cattle Institute, experts emphasize the importance of maintaining detailed feed and performance records for effective decision-making in beef cattle management.

On a recent episode of the Cattle Chat podcast, K-State veterinarian Bob Larson and other specialists discussed strategies to reduce operational costs without affecting cattle performance.

Bob Larson highlighted the importance of understanding herd performance. "To know where to cut costs, first beef producers need to understand what the current level of performance is in the herd," Larson stated. He identifies pregnancy percentage as a crucial metric, suggesting that in areas like central Kansas, a target of 90-95% is achievable, though this may vary by region.

Nutritionist Phillip Lancaster and agricultural economist Dustin Pendell added their perspectives on setting realistic production goals and managing feed costs—often the largest annual expense in beef operations.

Lancaster mentioned, “Depending on my feed costs I may set a goal of 85-90% pregnancy rate.” This approach helps producers align their expenses with achievable outcomes.

Dustin Pendell advises focusing on specific feed expenses to find potential savings. He poses several critical questions to consider: "Do you have a grazing management plan? What is the stocking rate? Have you evaluated your pastures’ soil via a soil test? And do they need to be fertilized?"

Jason Warner, a beef cattle extension specialist at K-State, pointed out the often-overlooked cost of feed shrink. “If feed costs are $1.50 per cow, per day, and if there is 10% shrink that is 15 cents, which can add up over time,” explained Warner. Addressing these hidden costs can lead to significant savings.

Through careful management and strategic planning, beef producers can significantly impact their bottom line. Pendell concludes that the variance in performance among producers often comes down to cost management: “the difference between the high performers and the low performers relates to how they manage costs.”

These insights from Kansas State University's Beef Cattle Institute serve as vital guidance for producers aiming to optimize their operations economically without compromising the quality and output of their herds.

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