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Tend-R-Leen®
Tech Report
July
2011
Strategies
for High Corn & Feed Prices
Recent
record high corn and grain prices present challenges for all
livestock producers. As
dairy beef producers, we must work even harder to be
efficient and maximize our feed efficiency and gains.
Following are some common myths, concerns, and
strategies for dealing with higher feed prices.
Myth: If
I purchase less feed off farm and feed silage or hay, my
feed costs will be lower.
While
it may seem like you are saving money by having a smaller
off farm feed bill, you could well be sacrificing profit,
due to increased amount of feed required to finish a steer,
decreased feed efficiency, increased days on feed, and
reduced average daily gains.
In addition, roughage fed cattle may grade lower than
steers fed on a no-roughage diet, thereby reducing your
income at the time of sale.
Producer Strategy:
Compare the numbers for performance and profit of
steers on a roughage ration versus Tend-R-Leen fed steers.
These projections are based on cattle fed from 350
lbs. to 1227 lbs.
Tend-R-Leen
ration
Shelled corn, haylage, protein ration
Shelled
corn: $7.00/bu.
Shelled corn: $7.00/bu.
Tend-R-Leen
Finisher $686/ton
Haylage: $55/ton
40% protein: $520/ton
ADG
= 3.22 pounds
ADG = 2.5 pounds
Days
on feed = 272
days (9.06 months)
Days on feed = 352 days (11.73 months)
Market
weight in 13 months
Market weight in 15.73 months
Feed
cost
Feed cost
78.21
bu. corn = $547.47
84.2 bu. corn = $589.40
408.48
# TRL = $140.11
4000 # haylage = $110.00
352# 40% pro. =
$91.52
Total
Feed Cost = $687.58
Total = $790.92
Feed
cost/pound of gain = $0.78
Feed cost/pound of gain = $0.90
Yield
= 61%
Yield = 58.5%
That’s
a difference of $0.12 in cost per pound of gain.
Feeding cattle from 350 lbs. to 1227 lbs. (877 lbs.
of gain) would cost $103.34 less on the Tend-R-Leen program
versus the roughage program!
Myth: I
can purchase a competitor’s concentrate cheaper.
Why should I buy Tend-R-Leen?
Is
saving $50 or more per ton of concentrate worth it?
The feeding rate of the lesser expensive product
needs to be considered to determine the actual cost.
Also, was the product researched and designed for the
type of feeding you are doing?
Or is it cheaper on face value but costs more in the
end with increased feed per pound of gain, lowered average
daily gain, health and digestive problems, and poor quality
finished steers resulting in lower profit because of added
costs?
We’ve
been asked the question -"Why does Tend-R-Leen®
cost more than your competitors?"
Tend-R-Leen is the lowest
cost per pound of gain no roughage beef feeding program
researched and proven over 50 years of no roughage cattle
feeding. The
addition of Sodium Diacetate along with the amino acid
balanced nutrition supplies the acetic acid normally
produced from digestion of roughage.
This serves as a buffer, assuring more consistent
intake and a healthier digestive tract.
Sodium Diacetate also increases feed efficiency,
requiring less corn to bring an animal to market.
Sodium diacetate saves you about 6 bushels per
steer and one ton of TRL feeds about 4 steers.
That is 24 bushels per ton of Tend-R-Leen or $168.
Another reason that Tend-R-Leen may cost more than
other proteins is because it also
contains yeast and B vitamins.
With Tend-R-Leen, protein and mineral supplementation
is designed for the shift in digestion to the intestine and
the higher rates of gain on less feed.
Because
Tend-R-Leen has done the research on feeding no-roughage
steers, we have accurate data documenting the performance of
our program. Can
competitive programs give you accurate numbers or any at
all?
Tend-R-Leen®
products contain more natural protein than the competitors
no-roughage program products.
Currently Domain, Inc. utilizes only plant and
vegetable protein sources to manufacture Tend-R-Leen®
products. Excluding
the use of animal protein sources in our Tend-R-Leen®
products increases the cost but allows you, the producer, to
certify your animals have not been fed any ruminant animal
protein products with confidence.
Producer
Strategy:
Compare the
numbers.
If
Tend-R-Leen®
costs $50/ton more than the competitor’s product with the
same feeding rate, it only takes less than one additional
ounce of gain to breakeven.
$50/ton
feeds 4 steers/ton = $12.50/steer.
If fed for 330 days that breaks down to 3.8 cents/day
and, at $1.05/lb. fat cattle price, .03 lbs more ADG will make
up the difference. This is less than an ounce per day to have
the satisfaction of knowing that you are feeding your steers
the BEST and the original No-Roughage Program.
If
a competitive product has a 2 pound feeding rate and is
boasting a $100/ton savings over Tend-R-Leen®,
you may need to look at the numbers more closely.
At 2 lbs./hd/day, only 3 steers can be fed per ton
versus Tend-R-Leen®'s
4 steers per ton. When you break this down, the price ends up
the same. But with
Tend-R-Leen®,
you have the satisfaction of knowing your steers are getting
the same high quality nutrition every time you feed.
The
next time a competitor boasts of a price savings over Tend-R-Leen®,
you may want to compare all the facts such as: feeding
recommendations, economic projections, rate of gain, feed
efficiency or closeouts that are for operations that are
similar to your own.
If
you have access to the Internet, you can go to tendrleen.com
and download our economic projection worksheet so you can
determine your economic situation at any stage of raising
steers.
Question:
What else can I do to combat high corn prices?
Look
closely at all aspects of your operation.
Even small changes in your management practices can
make a difference to your bottom line.
Several key management practices include steer comfort,
implants, vaccination and water.
These all can affect performance and profitability in
large ways.
Producer Strategy:
-
Improve
steer comfort by keeping the animals clean, out of severe
weather conditions, and having easy access to feed and
water.
-
Walk
through pens or lots on a daily basis to monitor all
cattle for injury or the start of illness. Make sure that
all steers get up and move around the lot.
-
Keep
feed bunk or self feeders clean and free of fines.
-
The
proper implant given at the right time can result in an
extra 99 pounds of gain and can improve feed efficiency.
-
A
solid and thorough vaccination program helps to reduce
disease incidence and keep cattle healthy.
A Texas A & M study found that cattle on a
thorough vaccination program resulted in $117 greater
profit per head due to decreased medicine costs, better
feed efficiency, and improved performance.
One big vaccination that is over looked is
Clostridal (7-Way) with many times a proper booster not
being administered. The
results can be bloating, reduced feed efficiency, or
worse, sudden deaths.
Death loss is exactly that - a loss - something
that will never be regained.
A good vaccination program will cost around $7 to
$15 per steer. It
only has to save one steer out of 50 head to pay for it
self.
-
Water
is a key element to feeding cattle, do they have plenty
and what is the quality?
Location of water can be overlooked.
How close and easy is it for your steers to eat and
drink? The
water source should be located close to the feed source to
encourage consumption.
If it is inconvenient for steers to walk across the
lot to get a drink then back across the lot to eat again,
they may eat & drink less.
Conclusion
To
make a profit when feed prices are high you must learn to
closely observe all parts of your operation.
-
Know
purchase price limits before purchases are made.
-
Feed
a ration that is proven to give the lowest cost per pound
of gain and not the cheapest per ton.
-
Manage
the cattle to get the most out of them.
If you want assistance in figuring out if you are doing the
most to get your maximum profitability, contact your local
Tend-R-Leen dealer or sales representative, or call
1-800-328-8752.
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