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Tend-R-Leen®
Tech Report
September
2009
Closeouts
and the Importance of Records
Feedlot closeouts are a valuable tool for producers to use to
summarize and analyze the performance of their feedlot
cattle. Analyzing
the results from each group of cattle can help assess and
compare management practices and determine practices that
are doing well in addition to pointing out factors that
might have room for improvement.
In a nutshell, closeouts give you a factual,
numerical look at the performance of your cattle, your
feeding program, and your management practices.
They can also be used to compare cattle that may come
from different sources and/or are brought in at different
weights.
In order for you to get the best information from a closeout,
good information has to be put in.
Accurate and detailed record keeping is vital.
Whether you use a computer program or a notebook in
your shirt pocket, the data you record on a daily, weekly,
or monthly basis is what you will use to calculate your
closeouts.
The
information you will need to calculate and complete your
feedlot closeouts are:
-
Cattle in weight, date,
number of head, and cost
-
Pounds of feed consumed and
all feed costs
-
Vet and medicine costs
-
Yardage costs
-
Interest costs
-
Cattle out weight, date,
number of head, and selling price of finished cattle
The
data and performance measurements that you will obtain from
the closeout are:
·
Days on feed
·
Average daily gain
·
Feed conversion/feed efficiency
·
Feed/lb. gain
·
Feed consumption per lot and per head
·
Total feed cost
·
Total cost
·
Feed cost per pound of
gain
·
Total cost per pound of gain
·
Profit per head
·
Death loss
·
Breakeven value
If
you’ve run our Tend-R-Leen projection program, you know
that all this information is provided in the projection
format. The
closeout is very similar, except that it uses your actual
recorded figures. If
you have not tried our projection program, you can download
it at www.tendrleen.com.
There
are feedlot software programs available that will aid in
record keeping and calculate closeouts for you.
Here is a list of several:
-
IBC Feedlot Monitoring
Software (515)
294-5247 (
Iowa
Beef
Center
– Iowa State Univ. Extension)
-
FLS Feedlot Solutions
(1-888-300-2727)
-
Advanced Livestock Tracker,
Contryman Associates, www.capc.com
-
Cattle Bytes, Computer Aid
Professional Services, 403-938-3020
The
University
of
Nebraska
offers the following advice for feedlot management and use
of records and closeouts.
We’ve
all heard that “One can only improve what is measured.”
Therefore, good (i.e., complete and accurate) record keeping
is crucial to the success of any business. During times of
high-cost inputs, this is particularly important for feedlot
managers. Good records are essential to monitor measures of
production and allow for informed management decisions and
planning. Cattle feeders use feedlot close-out information
for economic evaluation of pens. However, frequently
monitoring feedlot performance and costs as cattle are still
being fed not only tells you where the feedlot is currently,
but also allows managers to make fast mid-course corrections
as feed costs or cattle prices change. Knowing the current
cost of production is essential for making timely marketing
decisions and decreasing corn use (Doran and Loy, 2008).
Good
records help feedlot managers to answer important questions
about the operation’s financial health, and effective
management will depend on accurate measurement of production
and financial variables. This data, compared to appropriate
industry averages, helps managers to pinpoint both the
strong and weak characteristics of the operations. The use
of these comparisons is called “benchmarking.”
Benchmarking records is important to evaluate the
competitiveness of a particular operation, and to allow for
the comparison of a feedlot to others in the industry. This
allows for management decisions and plans based on good
historical data.
Information
in today’s world is generated quickly. Therefore, it can
be challenging to manage the volume of information available
in ways that make the information understandable and
manageable. However, once collected, information is of
little value unless it is used to monitor progress, make
decisions, and evaluate alternatives (
Lawrence
, 2006). Feedlot managers should continue to invest in
methods of managing information. The manager should also
communicate the critical importance of accurate information
from various input points in the feedlot (Albin, 1996).
Tips
What
types of information should feedlot managers keep? When
should they be reviewed? How can they compare their data
with other feedlots data? Some suggestions include (
Iowa
Beef
Center
, 2008):
·
Cost of gain and breakeven should be
continually monitored. Feedlots should work with projected
breakeven and marketing date/weight.
·
Employees should be trained and should make
decisions based on management input provided weekly.
·
Inventory analysis should be conducted daily
or weekly.
·
Feed mixing and weighing of ingredients should
be monitored.
·
Cattle intake should be evaluated daily, and
ration bunk samples should be analyzed frequently.
·
Feed waste should be measured, and adjustments
should be made.
·
Cattle gain and performance should be
estimated with the use of software. Previous closeouts and
records on cattle from a specific source could be used to
estimate future performance.
·
Feed purchases and waste should be monitored
monthly for billing or cost of feed adjustments.
·
Health management program effectiveness should
be evaluated annually.
·
Non-feed costs should be monitored and
adjusted annually using feedlot figures.
·
The charge of feed costs should be based on
updated fixed and variable costs.
·
Databases should be maintained and reviewed
regularly.
·
It is important to evaluate the database of
grid premiums by the type of cattle and feeding programs.
·
It is helpful to feedlots to belong to a
benchmarking program.
When
facing difficult economic times all aspects of the operation
should be evaluated. Sound economical decisions are made
based on what we can measure and identify as not profitable.
Accurate evaluation of all processes and reevaluation of
current practices is the way progress can be achieved for an
individual feedlot, and because of this, good records are
essential to maximizing productivity.
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