9.7.1 CARCASS WEIGHT AND SLAUGHTER WEIGHT
The weight of the body after the hide, head, tail, extremities, and viscera have been removed
Dressed weight (also called carcass weight) refers to the weight of an animal after being partially butchered, with the internal organs, oftentimes the head and inedible (or less desirable) portions of the tail and legs removed.
CARCASS WEIGHT = SLAUGHTER WEIGHT
9.7.2 BEEF PRODUCTION EFFICIENCY
Productive efficiency is concerned with producing meat with the optimal combination of inputs to produce maximum output for the minimum cost.
Efficiency is important to the profitability of an individual cattle operation and to the comprehensiveness of the whole cattle industry.
PLANNING
Before we can understand production efficiency, we need to analyse and understand efficient planning. The existence and sustainability of any business depends on good planning from the owners and managers. The plan, and the management of the implementation of the plan, will determine the future success of the business. Without a plan, there can be no business.
THE FEEDLOT BUSINESS: WHAT DO I PLAN?
The steps below are based on the assumption of an existing feedlot, with the correct infrastructure, equipment, legislation, standing operational procedures and human resource components already in place.
- The correct buy-in of animals (steers or heifers) from primary beef producers
- The pre-conditioning of purchased animals, before being grainfed in the feedlot
- The production of the correct feed (roughage and grain) to feed the animals
- The processing of the raw feed material in correct mixtures
- Batching of feedlot groups for feeding
- Feeding of feedlot groups
- Applying and monitoring the correct health management programme
- Monitoring the correct weight gain of animals per group
- Keeping records of all actions and quantify the cost of each action
- Selling fattened animals at the correct time, when the optimal combination of inputs prove to have produced maximum output for minimum cost
Let us analyse these steps to understand true production efficiency:
THE CORRECT BUY IN OF ANIMALS (STEERS OR HEIFERS) FROM PRIMARY BEEF PRODUCERS
Feedlots are businesses that are driven by profits and the principle of “Buy Low and sell High”, but this is not always easy, for the following reasons:
Knowing when the market is at its lowest and at its highest to take full advantage of the difference, and;
It takes courage to do the opposite of what most other people are doing.
Investing in feeder calves to be fattened and sold, tends to be short term investment, relative to a normal cow – calf investment. This market has more risks than the brood cow market. While it may appear to offer more opportunities to make money on market fluctuations, there are as many possibilities of losing on those fluctuations. Predicting the opportune time to sell has been the cause of speculation in the cattle industry for years. It is not the best place for the novice or the faint of heart, and it takes years of experience for a cattle (livestock) buyer to judge conformation with the eye and to decide on the correct buying price per weight.
No buyer will conclude a price if the calves have not been weighed, a percentage of transport loss in weight has been considered, and the price has been recommended and confirmed by the head of finance of the feedlot.
Buying wrong = loss of profit!!
The profit or loss a feedlotter makes, because of live mass gain in relation to cost of feed consumed, is called the feed margin and is calculated as follows:
Feed margin = Live mass gain x (sale price /kg – cost/kg gained)
Feedlot managers can influence the feed margin through good management practices that achieve optimal growth rates and by taking steps to obtain the best feed at the best price.
OTHER EXPENSES INCURRED BY A FEEDLOT BUSINESS INCLUDE:
- Agents commission
- Slaughtering cost
- Carcass condemnations
- Transport
- Interest on capital
- Machinery cost
- Salaries of management and labour staff
- Mortalities
- Veterinary costs (disease control, medicines, vaccinations) and pretreatments (growth stimulants, dipping, dosing, vaccinations)
Profit can be improved through manipulating some variable costs, but fixed costs such as commission and management salaries cannot be varied easily.
Feedlot profit margin is a function of price margin, feed margin and other expenses. Adding these three indicates profit or loss for the period of time a specific lot of animals purchased are fed and sold. Feedlot profits are a sensitive measure of the efficiency of feedlot managers who have the following major functions:
- Ensuring that the right type of animal is bought at the right price and at the right time. In some larger feedlots, feedlot managers rely on the services of experienced buyers.
- The feedlot ration must be balanced in respect of nutrient content, must be matched to the type of animal fed and should be the most costeffective ration available at the time of feeding. In most feedlots, the manager achieves these goals by keeping records of animal performance and monitoring results. A nutritionist is usually employed to do the ration balancing because this is a highly-specialised task that requires a great deal of time to monitor feed quality and costs of ingredients.
- The daily running of a feedlot is the major task of the feedlot manager. This includes ensuring that feed bins are full all the time, that fresh water
is continuously available to the livestock, that animals are processed and adapted on arrival and that animals are marketed when ready.
- Disease can be a problem in a feedlot. The services of a veterinarian to advise on disease prevention and the treatment of sick animals is a cost well justified. The adage “prevention is better than the cure” is very true in feedlotting.
9.7.3 FORMULAS FOR CALCULATION
Break-even feeder price:
Gained weight is calculated as follows: Gained Weight = fed weight – feeder weight
Example of calculation:
Given:
You are a feedlot livestock agent who wants to buy 200 yearling steers that have been well fed on pastures with a grain supplement during the winter. After weighing the yearlings, you found the average weight of the 200 steers to be 290 Kg. You should calculate the break-even purchase price against the following costs provided by the feedlot accountant to you. The objective of the feedlot is to feed the yearlings for a period of 180 days, and to sell them at a final weight of 480 Kg at grade A2/3.
Break-even feeder price:
|
Final weight |
|
Gained weight |
|
|
Break-even R/kg =
Break-even R/kg =
|
Starting weight 480 kg
290 kg |
X expected R/kg Of fed cattle
x R19,93/kg
|
x cost of grain R/kg Starting weight 190 kg x R18,50/kg 290 kg |
= 1,65 X 19,93 – 0,65 X 18,50
= 32,88 – 12,02
= R20,86 / kg
This means that for the feedlot to break even against the current cost structure of feeding steers, you cannot pay the farmer more than R 20.86 / Kg for the yearlings.
Note: The success of making profit in a feedlot lies within the ability to buy in at the correct price!
CALCULATING THE PROFIT MARGIN
Formulas
Starting weight
Cost of feeders = x Buying price R/kg Final weight
Gained weight
Cost of gain = x Feeding cost R/kg Final weight
Total cost = cost of gain + cost of feeders
Margin / kg weight = fed cattle price – total cost
Profit per head = margin / kg weight x final weight
Examples of calculation
You decide to buy the yearlings from the farmer at R19,93 per kg. Calculate the profit margin against the same transaction details as given above.
Starting weight
Cost of feeders = x Buying price R/kg Final weight
= 290 / 480 x R19,93
= 0,6 x R19,93
= R11,96 / kg
Gained weight
Cost of gain = x Feeding cost R/kg Final weight
= 190 / 480 x R18,50
= 0,39 x R18,50
= R7,32 / kg
Total cost = cost of gain + cost of feeders
= R7,32 + R11,96
= R19,28 (Cist per kg to buy and to fatten the steers
Margin / kg weight = fed cattle price – total cost
= R19,93 – R19,28
= R0,65 / kg
Profit per head = margin / kg x Final weight
= R0,65 / kg x 480 kg
= R312 / steer
Note that the profit margin is very low, indicating the high risk and excellent management skills required from the feedlot management. This also confirms that price alone, is not the only factor to consider!
9.7.4 SELECTING AND BUYING FEEDERS
- Make use of performance records from the primary producer to try to reduce the risk of buying calves that do not grow and fatten sufficiently
- Bigger framed and heavily muscled cattle tend to gain weight faster
- Health thin cattle gain faster weight than already fat cattle
- Buy young, light weight cattle to feed
- Steers are more valued than heifers
- Crossbreed cattle tend to perform better: know your breeds and their performance rates
9.7.5 PRECONDITIONING OF PURCHASED ANIMALS BEFORE BEING GRAIN FED IN THE FEEDLOT
9.7.5.1 PRECONDITIONING OF CALVES
Preconditioning refers to the process of conditioning calves for the stress of being removed to a feedlot.
PRECONDITIONING PRACTICES INCLUDES:
Dosing and dipping are essential to clean all animals of internal and external parasites.
- Management practices of castration, de-horning, marking / tattooing or branding required by law
- Keeping and maintaining accurate health records
- Vaccination for botulism, anthrax, quarter evil, brucellosis, blackleg/ malignant oedema, IBR (Infectious Bovine Rhinotracheitis), Bovine Virus Diarrhoea (BVD), Par5a-influenza (PI3) and leptospirosis
- Injecting with Vitamin A
- Grouping animals by age, size and sex
- Recording the initial weight of all animals
- Weaning at least 6 weeks before selling
- Calves can eat solid feeds from a bunk and can drink water form a trough
- De-worming and treating for grubs, lice and mange
Producers may be asked to issue a preconditioning certificate to feedlot buyers before buying and transporting is done.
THERE ARE CERTAIN QUESTIONS THAT NEED TO BE ANSWERED BEFORE THE PROCESS OF PRECONDITIONING IS UNDERTAKEN.
- What are the market requirements and conditions?
- How will the animals be sold? Auction, video auction, through an agent of a feedlot, etc.
- Will the buyer pay me for my efforts in preconditioning?
Finding a market
The first place to start is with local order buyers, people who make their living buying cattle for producers who will graze or send them on to the feedlot. In many cases, they buy cattle directly for the feedlots. Many order buyers are individuals who operate independently. Others work for larger order buying organisations which may move thousands of cattle per week. Buyers are a good source of information and may, in fact, be potential customers. It is normally the bigger feedlot companies that can benefit from cattle that have been managed in this way; they are normally looking for a good source of cattle that will cause them few or no problems.
The following is a rough set of guidelines which can be used to structure a preconditioning programme.
- Bring cattle into the planned preconditioning area (camp, lot, pasture or trap) and provide them with clean, fresh water and plenty of good quality hay. If you are feeding round bales you probably want a minimum of a bale per every 20 head. Provide the animals with a good quality feed which includes appropriate levels of chlortetracycline (antibiotic). Feed them at least once per day to ensure feed is fresh. Remove any feed that becomes mouldy or sour immediately.
- Camps need to provide adequate room for movement but should not be too large. Typical dry-lot pen requirements are about 18.5 M2 per head in low rainfall areas. In higher rainfall areas, this number should be at least doubled, especially where the area is fairly flat, and runoff is poor. Too large camps allow fresh cattle to “get lost” and they may have difficulty finding hay and feed. Place feed bunks and water troughs on the fence line so cattle will come across them while walking the fence. Most cattle will fence walk for a couple of days after weaning.
- Wait about 24 hours after weaning to process.
- A typical preconditioning programme will require the following processes:
- Inject/ vaccinate for Shipping Fever Complex (IBR, PI-3, BVD, BRSV, etc.) – many veterinarians currently recommend the use of a modified-live vaccine. Revaccinate at two weeks. Follow all label directions
- Inject for Clostridial diseases – 7-way vaccine is recommended.
Revaccinate at two weeks and follow all label directions
- Vaccinate with a Vitamin A, D, E complex
- Deworm with an injectable or oral de-wormer
- Treat for external parasites
- Castrate bulls by banding or cutting. This can be done at the two-week rework
- Identify by ear tagging or branding
- Cattle should be checked daily and those showing symptoms of sickness should be pulled and placed in a separate pen / sickbay. Several good quality antibiotics are available for treatment of sick cattle. Also, vaccinate with Vitamin B-12 (involved in energy metabolism) and give a sulpha bolus. Your veterinarian can recommend those products which are the most effective in your area. Also, placing sick cattle in a smaller pen can help stimulate them to eat since they will not have to compete with as many other cattle for hay or feed. Sick cattle tend to isolate themselves from other animals and subsequently will not eat or drink well.
- Feeding programmes can be designed in a multitude of forms. One of the simplest requires feeding hay along with a preconditioning feed at 1 to 1.5 percent of body weight. The exact formulation of the feed should depend on a test of your hay to determine nutrient content. A similar programme can be used for cattle on pasture. Preconditioning feeds should meet the nutrient needs for the size and type of cattle you are feeding and provide an ionophore such as RumensinTM or BovatecTM to improve feed efficiency. These compounds are also labelled to provide some control of coccidiosis.
- When cattle have been on feed for a minimum of 45 days, they are ready to be marketed as preconditioned cattle. They have been adapted to a pen environment, know what feed bunks and water troughs are, are familiar with eating from a bunk and have been processed for most of the diseases which can create problems for cattle at this time.
Marketing needs to be done before calves enter the pens. This is probably the most important part of a successful programme. Planning and marketing are, by and large, the two most over-looked facets of management programmes and are the two that can have the greatest effect on profitability. Get these two components into your programme and the rest of it becomes fairly simple. Preconditioning is a trend we will see a lot more of. Successful implementation requires that you do the right things at the right time and it can become a very productive part of your overall programme.
9.7.5.2 BACKGROUNDING OF CALVES
Backgrounding refers to the period after weaning up until going into a feedlot.
The weaning process is quite stressful for both cows and calves and most calves go through some sort of post-weaning growing program.
Calves that have been weaned with the intention of sale to a commercial feedlot, but that have never been placed in a preconditioning programme, are referred to as stockers. The process of backgrounding therefore links the weaner and the feedlot sector, by providing a means of adding weight and value to calves.
There are strong indications that the retail sector in South Africa will in future require heavier beef carcasses (450-480kg) as in many other countries.
Backgrounding is done with mostly roughage and calves are fed for 120 – 150 days to gain between 0.7 – 0.9 kg weight per day. Calves should not be fattened too much as this will affect sale prices. It appears from the market that most South African beef cattle breeds have reached a ceiling in terms of weaning weight. This leaves the industry with very few options, and the optimisation of backgrounding systems may partly solve this challenge. Backgrounding of cattle is therefore used to prepare the calf for subsequent segments of the beef cattle industry. It was found that backgrounded calves may demonstrate greater feedlot profitability because of greater average daily gain, gain: feed ratio, decreased medicinal cost and mortality compared to non-backgrounded cattle.
9.7.6 INTENSIVE FEEDING
A feedlot ration should be designed to give maximum weight gain and fattening rates at the lowest cost with minimum digestive upset.
9.7.6.1 DAILY FEED INTAKE
In many cases, differences in individual feed capacities vary more within a group of similar cattle than between different categories.
Most feedlot rations tend to be based on grain, plus dry roughage, with an average dry matter content of around 90%. Therefore, when preparing a budget, calculations can be simplified if you use an intake capacity of 3% of live weight to calculate the actual weight of feed required. This applies to a ration that is around 90% dry matter.
However, if using a silage or green chop-based ration, with an average dry matter less than 80%, or designing a ration to provide energy and crude protein requirements, calculations should be made on a dry matter basis.
The table below provides details of daily feed capacities, metabolisable energy and crude protein requirements on a dry matter basis for various categories and live weights of cattle.
DRY MATTER
Dry matter refers to the amount of dry material in a given feed. Green chop consists of about 15–20% and silage about 30–40% dry matter, while grain is about 90% dry matter. Most feeds used in feedlot rations have a dry matter content of around 90%.
An animal needs between 2.7% and 3.0% of its live weight as dry matter intake per day. Cattle in low condition may eat 3% of their body weight, while cattle with a high degree of finish have a lower capacity (Table 6).
To find how much to feed, calculate as dry material and divide by the dry matter percentage to get weight. For example, silage consists of about 30% dry matter. If we need 3 kg of dry matter, then calculate as follows:
3 × (100 ÷ 30) = 10 kg of wet silage
ROUGHAGE
Roughage is required for the satisfactory functioning of the digestive system. Generally, a ration containing 75:25 or 80:20 grain/roughage gives satisfactory weight gain at minimum risk, although rations can vary from 50:50 to 90:10.
The higher the percentage of grain in the ration, the higher weight gain potential, but the risk of digestive upsets is greatly increased when more than 80% grain is fed.
When high levels of roughage are fed — for example, in starter rations — goodquality roughage should be used. Poorer-quality roughages are acceptable when low-roughage high-grain rations are fed.
Hay is the most common roughage to be fed in feedlots and good quality Lucerne and Soya hay are high in protein, calcium and carotene.
MAIZE SILAGE
Maize silage is by far the most popular roughage fed to cattle. One ton of maize silage is converted to about 45.5 Kg of meat. Maize silage is supplemented with protein and daily gain in weight of up to 900g can be achieved. Most commercial feedlots plant maize for the specific purpose of making silage to feed. High maize and other grain prices are eliminated in this way of planting.
SOME KEY NOTES ON THE USE OF SILAGE:
9.7.6.2 ENERGY
High-energy rations should be fed for maximum weight gains. Energy is measured as megajoules (MJ) of metabolisable energy (ME) per kilogram of feed.
For efficient fast-fattening, steers under 12 months of age need a ration containing about 12 MJ/kg, and yearling cattle require a ration containing about 11 MJ/ kg. Grains are rich in ME (about 13 MJ/kg) and stubbles are low (about 5 MJ/kg).
9.7.6.3 FEEDING OF GRAINS
Maize, sorghum and oats are the principal grains fed to beef cattle. Limiting wheat to 50 percent and oats to 30 percent of the grain in finishing rations of beef cattle is recommended. Some experienced feeders use larger amounts of wheat successfully.
The price of grains should be compared with their nutritive value. The value of grain, especially sorghum, varies because of variety, processing methods and other factors. Sorghum is usually considered to be worth about 90 to 95 % and wheat 100 to 105 % the value of an equal weight of grade 2 maize in beef cattle rations.
Most processing methods improve the value of sorghum more than they do that of maize. This is because the starch of sorghum is less digestible. Processing methods developed for grains in recent years included high-moisture storage, steam flaking, grain exploding, popping, roasting and micronizing.
HIGH-MOISTURE GRAIN
Sorghum harvested with a moisture content of 25 to 30 percent has improved feed efficiency of cattle by 8 to 15 %, although it causes little increase in daily gain. Improvement from high-moisture processing of maize has been less and more variable.
High-moisture sorghum or maize should be ground or rolled before it is fed. However, processing high-moisture maize in rations that have less than 15 percent roughage is questionable.
WHOLE VS. GROUND DRY-SHELLED CORN
Dry, whole maize has been equal or slightly superior to milled or crushed maize in high-concentrate beef cattle rations in many recent trials. Processing appears to have some value for dry-shelled maize in rations with 20 % or more roughage content, or when maize is very dry, with less than 12 % moisture.
MIXTURE OF GRAINS
Feeding a combination of grains or feeding a dry grain with a high-moisture grain can reduce acidosis and improve gain and feed efficiency about 5 %. This is because grain type and method of processing influences the rapidity with which the starch in the grain is digested in the rumen and the proportion of the starch that is digested in the rumen versus the small intestine. Cattle fed a combination of 50 to 75 % high-moisture maize and 50 to 25 % dry maize or sorghum gained 5 % faster and 4 % more efficiently in feeding trials.
9.7.6.4 BY-PRODUCT FEEDS
By-product feeds may be a cheaper source of protein and energy for beef rations than conventional feeds. By-product feeds available to cattle producers include soybean hulls, maize gluten feed, distillers’ grains, brewers’ grain, maize bran, oats bran, rice bran, wheat bran, whole cotton seed and poultry litter.
HIGH-CONCENTRATE RATIONS
All-concentrate rations have been used successfully to finish beef cattle. Except for using whole maize, a higher level of management is needed to make this system work under feedlot conditions. Problems associated with all-concentrate rations include reduced energy intake, founder and other digestive problems, parakeratosis of the rumen wall, and greater incidence of liver abscesses.
An optimum minimum roughage level in high-grain rations appears to be about 7 to 10 % hay equivalent of the total ration. This would amount to approximately 0.65 kg to 1.12 kg of hay or 2.7 kg to 3.6 kg of silage per animal daily. In most cases, rate and consistency of gain have been slightly in favour of minimum roughage rather than all-concentrate rations.
PROTEIN
Protein is measured as crude protein (CP). Protein is essential for the health, growth and appetite of the animal. Young cattle require higher levels of protein than older cattle. A range of CP from 11% to 15%, depending on age and weight, will be required.
Where a high proportion of grain is fed, and the roughage is of good quality, there is often adequate protein in the ration. If not, the addition of 1% urea will effectively boost the protein level and aid digestion.
Rations for young cattle might be low in protein. If so, you can add a highprotein meal such as sunflower meal, linseed meal or cottonseed meal. Because young cattle require a high proportion of their protein intake from true proteins, these protein meals must be used in preference to urea to raise the protein level of the ration.
As cattle slow their growth and become more finished, intake capacity often eases slightly. Weight gain may also ease as more of the energy consumed is converted into fat (higher energy content) rather than muscle.
The preferred minimum entry weight for feedlot cattle is 250 kg (live weight). Cattle can go on to the feedlot at lighter weights, but their protein requirements are so high that the ration becomes expensive and the time on feed is extended to achieve a marketable (although often not profitable) weight.
FEED REQUIREMENTS OF LOFTED CATTLE
OTHER COMPONENTS
Other components of the feedlot ration include minerals, vitamins, salt, nonprotein nitrogen and rumen modifiers.
MINERALS
Cattle need minerals to maintain good health. The most important are phosphorus and calcium. Grain is high in phosphorus and low in calcium, so with a high-grain ration, add calcium as ground limestone at a rate of about 1% (10 kg limestone/tonne) of the ration. This amount can be halved when Lucerne hay is used as the roughage component.
Extra phosphorus is sometimes added to weaner rations, usually at the rate of 0.1% (1 kg/tonne).
Sulphur is often added to rations that include urea, while zinc and cobalt often improve the action of rumen micro-organisms.
Other minerals could be needed, but deficiencies are unlikely to occur in short feeding periods (less than 100 days).
Salt is added at the rate of 0.2% (2 kg/tonne) of the ration to supply the recommended daily allowance for sodium of 0.08% (0.8 kg/tonne).
NON-PROTEIN NITROGEN (NPN)
Urea is cheap and physically easy to feed. However, it is toxic in excess, and inexperienced operators should not attempt to use more than 1% in their ration. Be alert and informed on all aspects of urea poisoning.
Feed at 1% by weight of the total ration. Because urea can be toxic if fed to excess, take care that this amount does not exceed 2% and that it is thoroughly mixed in the ration. Introduce it gradually, starting with 0.5% by weight (5 kg/tonne) of the total ration for the first 5 days.
9.7.6.5 THE PROCESSING OF RAW FEEDING MATERIAL IN A CORRECT FEED MIXTURE
In the olden days, roughage like straw or hay was stacked in a heap to dry and was then fed on an “as is” basis by hand, using a hay fork to feed the cattle. In this way, the fermentation of raw material was completed by the animal’s digestive system.
In the modern era, raw feeding materials are milled using a hammermill or feed mill to grind the coarse particles to an even size, and then through a mechanical feed mixer to obtain the optimum balance of a ration for a specific purpose.
RECEIVING OF RAW MATERIALS
The first operation in the feed processing plant involves the receiving of raw materials into the plant premises. Feed ingredients arrive in sacks, or other small containers, and in bulk.
Sacked ingredients are checked for identification and condition. They are then logged in after segregation of drugs and medications. Sacked ingredients must be stored in a dry location with proper protection from rodent and insect infestation. Sacked stocks are then rotated to minimise staleness, product degradation and insect infestation.
Bulk ingredients are handled according to their physical form. Liquid ingredients, such as oils and molasses, are generally stored in bulk tanks. Proper storage temperature is maintained, and the filter screens are checked periodically. Solid bulk ingredients such as grains, oil meals, etc., are cleaned with a scalper to remove foreign material prior to storage in bins. Bin temperatures are monitored to prevent heating due to grain respiration.
PROCESSING
Material flow during processing includes:
- particle size reduction
- premixing
- mixing
- pelleting
- sacking
Coarse ingredients pass over a permanent magnet which removes tramp metal and then through a hammer mill which reduces particle size to the desired screen analysis. Ground material is monitored periodically to ensure size uniformity and to help detect wear of hammermill screen and hammers. The ground material is then routed to ingredient holding bins.
There are two mixing operations in feed milling. One is for the mixing of micronutrients – the operation is generally termed pre-mixing. The other mixing operation involves the actual blending of all components of the diet.
Micro-nutrients, such as vitamins and trace minerals, are accurately weighed with carrier material which has a density approximating that of the predominant micro-ingredient. The materials are then mixed in a batch mixer for a period of time specified by the equipment manufacturer to ensure homogeneity. The premix is finally routed to the premix holding bin.
Diet mixing begins when augers are set in motion to deliver the correct amounts of each ingredient including the premix, according to the formula, into the mixer. Where manual changing of the mixer is done, ingredients are weighed out in sacks or hopper carts. The mixing period is according to the equipment manufacturer’s specifications, but final mix is checked periodically with a tracer to ensure homogeneity of the mix. If the mixed diet is to undergo pelleting, it is routed to the pelleting bin.
Mixed feed mash for pelleting is first conditioned with steam in the steam conditioner section of the pellet mill, after which it enters the die where it is finally extruded. Freshly extruded pellets are hot and contain excess moisture which is removed during passage through the cooler. Fines are then screened from the cooled pelleted feed and returned for repeating. Fish oil, if added, is now applied prior to the routing of the finished pellets into the packer bins.
On the farm, commercial farmers will use an ordinary hammermill driven by a tractor to mill and grind all raw materials, and then also use a mechanical feed mixer to properly mix the materials into a balanced ration.
Hammermill
Feed mixer
9.7.6.6 BATCHING OF FEEDLOT GROUPS FOR FEEDING
Animals are placed in similar groups determined by gender, age and conformation, as discussed earlier.
FEEDING OF FEEDLOT GROUPS
FEED INTAKE
- (DMI) Dry matter intake is a measurable tool for cattle performance.
- Animal performance can be predicted with reasonable accuracy if feed intake is monitored daily and if historical feed conversions or net energy of current feed ingredients are known.
- Dry matter intake can also be used to troubleshoot pens of cattle.
- If dry matter intake is unexpectedly low, changes should be made to correct the problem.
- The first step is to monitor the relationships between daily intakes of Dry Matter of Energy versus Nutritive Value of Feed which is demonstrated as follows:
To determine expected feed intake, combine the base dry matter intake shown in the “Expected Feed Intake of Cattle in Feedlots” table below, with the adjustment factors shown in the “Adjustment Factors for Dry Matter Intake in Feedlot Cattle” Table. If intake is significantly below these numbers, then you should make changes to your nutrition and management regime to boost dry matter intake.
To be competitive in the feedlot industry, cattle performance must be optimised. The common goal for finishing cattle must be to maximise daily gain through optimizing feed efficiency. Feed intake is a powerful tool to predict animal performance, meet contract deadlines and to monitor the ongoing progress of pens of cattle.
Record keeping of daily feed intake and weigh gain is essential in a feedlot to obtain historical data of feed conversions. If the net energy content of current ingredients is known, and dry matter intake (DMI)is monitored, the average daily gain can be reasonably accurately predicted. If cattle are below expected DMI, it serves as a troubleshooting technique that can be used to get pens of cattle back on track. In general, if cattle are eating well, they should be performing well. If dry matter intake is low, animal performance is usually disappointing.
Estimates of DMI expressed as a percentage of body weight on a dry matter basis are an excellent tool to monitor ongoing progress of cattle in feedlots. The goal of this fact sheet is to indicate the importance of monitoring DMI and indicate its usefulness as a performance predictor and troubleshooting tool.
9.7.6.7 FACTORS AFFECTING DMI
Physical factors – The generally accepted theory is that cattle on high roughage rations limit their intake by physical means; they simply cannot fit any more feed in the rumen. Physical limitations to feed intake is partially a function of rate of digestion and therefore rate of passage of feed from the gut. If the rate of digestion can be increased, then the rate of passage will most likely increase which in turn allows the animal to consume more dry matter. If the rate of digestion is slow, feed intake is limited due to a full rumen.
Cattle consuming a high-energy finishing ration do not stop eating because they can no longer fit any more feed in the rumen. Here consumption is limited by total energy intake. The brain says, “do not consume any more energy!”
The relationships between daily intakes of Dry Matter of Energy versus Nutritive Value of Feed are demonstrated as follows:
It is important to be familiar with this basic concept so that we can readily understand and help correct problems with low dry matter intake in cattle consuming high roughage and high concentrate rations. For example, if you feed long chopped silage, you may run into dry matter intake problems in cattle fed a high roughage diet, but it probably will not significantly influence dry matter intake in finishers.
9.7.6.8 ESTIMATED FEED INTAKE
Dry matter intake alone is an ineffective tool, however if DMI is compared to a benchmark then it becomes a very important management tool. Such a benchmark must be recorded and kept by each feedlot, as the environmental conditions and factors influence the feed intake and performance of feedlot cattle. A reduction in feed intake may be caused by several factors, for example, the cattle may not rise from their well bedded pack as regularly as compared to warmer conditions, and therefore they go to the bunk less frequently. In addition, if a silage-based ration is fed in extremely cold conditions, it takes excellent bunk management to keep palatable, unfrozen feed in front of the cattle during cold days. It is known that game reduce their feed intake during winter periods as a strategy for survival – perhaps the same phenomenon occurs in cattle. In general, feed intake is higher in the summer months than the winter months.
THE FOLLOWING TABLE IS A BENCHMARK FOR FEED INTAKE OF CATTLE IN A FEEDLOT
Expected dry matter intake of crossbred steer calves fed during the summer in thermo neutral conditions. The steers are carrying medium flesh (condition score 5.5, based on a 1 to 9 system), implanted with an estrogenic implant and fed an ionophore. Based on data obtained from well managed feedlots.
FEED ADJUSTMENT FACTORS DUE TO ENVIRONMENTAL CONDITIONS
Most feed intake data for ruminants associated with changes in temperature has been generated in short term research trials. The adjustment factors for environmental conditions given below are most accurate when applied to cattle exposed to short periods of heat and cold stress. It was found that cattle fed during the winter months have the lowest level of feed intake which challenges conventional thinking that feed intake automatically goes up during exposure to cold temperatures and may be caused by the factors mentioned above.
EXAMPLE OF APPLICATION
The following values (obtained from the above tables) are used to estimate DMI expressed as a percentage of body weight on a dry matter basis of a 320 kg crossbred heifer calf. The heifer has a condition score of 6.5 and is fed during the summer time at 20 C. The heifer is fed a combination of Rumensin® and MGA® and is implanted with a Trenbolone-Estrogenic implant.
9.7.6.9 FEEDING MANAGEMENT
Many feedlotters mix their own rations, usually a complete feed, using the most readily available ingredients at the best price they can get. Where homeproduced feeds are available at low cost e.g. silage, the profitability of a feedlot can be improved.
OTHER FEEDING SYSTEMS INCLUDE:
Buying in a complete feed. If large volumes of feed are bought, a better price can be negotiated. This option must always be investigated, especially when beef prices are good, and ingredients are difficult to obtain. Cost of transport often offsets gains made on the feed price.
Cafeteria feeding systems have been developed and have the advantage that the animal selects an increasingly concentrated diet over time, which leads to greater efficiency of feed utilisation. The two cafeteria systems commonly used are the finisher feed system and the PRAM (protein-roughage-additive-mineral) system.
To ensure profitability, many feedlots employ a nutritionist who reformulates the ration or feeding system continuously. Taking care that adaptation to new feeds does not cause problems, a nutritionist can buy in ingredients and formulate the cheapest ration in relation to animal performance by monitoring markets continuously.
Feedlot managers must be aware that continuous income is needed to keep a feedlot enterprise running. The only way this can be achieved is by continuously selling livestock. This is a challenge in feedlotting, because animals remain in a feedlot for 90 to 120 days. The feedlotter must therefore predict market demand, and consequently predict selling price at least three months ahead. A continuous source of feeders is needed, but not always available.
Livestock can be obtained directly from farmers or be bought by private treaty through an agent or at livestock auctions. Where a buy-in feedlot system is used, buyers must be experienced in evaluating the potential for fattening of different types of animal (maturity type, age, gender) in relation to the market demand (price) of different grades of carcass. Funds to buy in animals must be available at all times. A lack of funds to buy in animals when prices are favourable could lose an opportunity to make a profit.
SIZE OF THE FEEDLOT
There is not an optimal size for a feedlot. Even a farmer feeding a single animal can make a profit. However, feedlotting often runs at a loss and a small operator cannot absorb such losses for any length of time. A large enterprise with a feedlot as its sole source of income, must have a feedlot that is large enough to pay for running costs such as salaries, transport, cost of equipment and so on. At present costs and salaries, a feedlot producing less than 1000 head of cattle per month (i.e. has 3000 to 4000 head of cattle in the feedlot at any time), cannot generate enough income to cover overhead costs.
STARTING CATTLE ON FEED
ADAPTATION AND PROCESSING
Ruminants must always be adapted to a new feeding regime. Adaptation allows the microflora in the rumen to adapt to the new substrate they are fed. This usually takes up to three weeks and is best done by a gradual increase in energy content of a diet. This is called an adaptation ration. With modern additives, such as the ionophores, the adaptation period is not as critical as it used to be. However, although most feedlotters no longer make use of an adaptation ration, a good practice is to place animals on hay for a day or two before supplying the high-energy ration. Initially the intake of the concentrate is best limited to 1 to 2 kg per day before animals are allowed free access. This also assists animals to overcome the stress related to transportation to the feedlot.
ON ARRIVAL AT THE FEEDLOT ANIMALS MUST BE PROCESSED. PROCESSING VARIES FROM FEEDLOT TO FEEDLOT, BUT USUALLY INCLUDES:
- Dose and dip. Dipping is essential, but many people question the need to de-worm animals arriving at a feedlot. A positive response to dosing is often not seen, possibly because many farmers dose their animals before selling them.
- Vaccinate all animals against botulism, anthrax, quarter evil, IBR and any other diseases the veterinarian considers essential in the area where the feedlot is situated.
- Administer growth stimulants. These have been shown to be highly cost-effective. Injecting Vitamin A is usually worth the nominal cost involved.
- Identify and number the animals for record keeping purposes.
- On arrival at a feedlot it is good practice to group animals according to size and sex. Large animals tend to bully smaller animals and keep them away from feed troughs.
- The initial weight of animals should be recorded, preferably after 7 to 10 days in the feedlot. Now, careful observation can identify poor performers, and these can, at a next weighing which ideally takes place two to three weeks later, be culled if the mass gains confirm the earlier observations.
- Horned animals are a problem. Dehorning sets an animal back a great deal. Leaving animals with horns can lead to severe losses resulting from damage to other animals and bruising. It is best to refrain from buying in animals that have not been properly dehorned.
SOME RECOMMENDED RATIONS
The formulation of rations is a matter of combining in the quantities needed to supply the daily nutrient requirements of the animal.
The following are some recommended finishing rations:
[1] Use trace mineral salt. You may substitute bone meal for Dicalcium phosphate and Tripolyphosphate for Monosodium phosphate.
Complete mixed rations (as fed).
Add recommended levels of vitamins, ionophores (Rumensin® or Bovatec®) and MGA® to rations.
9.7.6.10 CALCULATE TOTAL FEED REQUIRED
Feed requirements are calculated according to general guidelines of consumption and feed requirements, depending and varying according to age, condition, type of feed, environment, and sex and management practices.
A general rule of thumb is that fattening cattle will eat 2.5 – 3 % of their body weight per day. Thus, through multiplying the weight of the animal by 2.5 – 3% and again by the number of days to be fed, a good indication of the feed requirements will be gained.
For example:
Steer starting weight: 250 kg
Feeding period: 200 days
Daily weight gain: 0.9 kg
Finish weight: 450 kg
The prescribed ration per head per day:
|
Ingredient |
Kilogram |
|
Maize |
6.7 |
|
Protein Supplement |
0.68 |
|
Hay |
2.27 |
|
Consumption prescribed as % body weight |
2.5 |
FORMULA AND CALCULATION:
((Start weight + End weight) / 2) x (feed consumption as % of body weight) x days to feed
= ((250 + 450) /2) x (0,25) x 200
350 x 0,025 x 200
= 1750 kg feed per head
CALCULATION OF TOTAL FEED INGREDIENTS REQUIRED PER 250 KG STEER
|
Ingredient |
Daily (kg) |
Ration |
Feeding period (days) |
Total requirement head (kg) |
feed / |
|
Maize |
6,7 |
200 |
1340 |
|
Protein |
0,68 |
200 |
136 |
||
|
Hay |
2,27 |
200 |
454 |
||
|
Total feed needed per steer over 200 days |
1930 kg |
||||
Apply and monitor the correct health management programme
9.7.6.11 REGULAR INSPECTIONS
Regular inspections involve observations of the health status of animals. This includes the reporting of any deviation in the normal behaviour patterns, such as moving, anorexia, depression, lameness or abnormal gait, stiff movement, coughing, nasal and ocular discharge, increased breathing rate, crusted muzzle, sunken eyes, rough hair coat, lose or very firm faeces, abnormal abdominal fill, and straining. Cattle with these or other signs of illness must be examined more closely in the hospital area and, if necessary, be treated.
9.7.6.12 DISEASE SURVEILLANCE
It is necessary to do continued disease surveillance through regular necropsy examination of dead cattle and regular observations of sick cattle. Fast and accurate diagnosis of disease is of utmost importance.
This requires a good surveillance system, a systematic plan to search for sick animals, appropriate facilities for examination and treatment, accurate identification of animals, and appropriate laboratory facilities, especially a necropsy service. Emphasis is placed on training and supervising feedlot employees in the detection and early treatment of sick cattle. Employees, particularly any personnel responsible for checking the cattle pens for sick cattle, should be given regular instruction on the clinical signs of common diseases.
9.7.6.13 TREATMENT PROTOCOLS
A veterinarian must specify procedures for the clinical management of sick cattle. This includes a standard protocol (SOP) that outlines specific treatments for disease syndromes including drug dosages, treatment intervals, routes of administration and withdrawal times.
The protocol should be followed strictly by all personnel so that the success or failure of therapy can be evaluated accurately and chances of creating food safety hazards are zero. The effectiveness of the treatment protocol should be evaluated regularly by determination of the response rates for the various treatment regimens. Failure to develop and implement appropriate treatment protocols often leads to the use of many different drugs indiscriminately, which then leads to excessive treatment costs and often an increase in fatalities.
9.7.6.14 MONITOR THE CORRECT WEIGHT GAIN OF ANIMALS PER GROUP
All animals or selected animals must be weighed on a regular basis, as regularly as daily or weekly. The variation in gut fill can wrongfully affect the muscle weight of animals, and therefore it is a good practice to weigh in the morning, before the daily feeding programme starts. The early morning weighing also provides a benchmark to work from, as the weight is taken with limited food and water in the gut.
It is also important to consider that besides gut fill, other factors can also affect live weight gain, such as sex, genetic merit, breed, body condition, health status, diet composition, diet nutrient content, diet intake, growth stimulants and previous nutritional history.
9.7.6.15 KEEP RECORDS OF ALL ACTIONS AND QUANTIFY THE COST OF EACH ACTION
There is a common saying among managers: “What you don’t know can’t be measured!” In other words, one can only improve what is measured.
Record-keeping is crucial to the success of any business, especially in feedlots, when the cost of inputs, such as feed, diesel, wages, electricity, etc., increase by the day.
Good records are essential to monitor measures of production and allow for informed management decisions and planning. Cattle feeders use feedlot closeout information for economic evaluation of each group 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 in the optimum adjustment of expenses, for example, to decrease the use of expensive grain feeds timeously.
SELL THE FATTENED ANIMALS AT THE CORRECT TIME, WHEN THE OPTIMAL COMBINATION OF INPUTS PROVES TO HAVE PRODUCED THE MAXIMUM OUTPUT FOR THE MINIMUM COST.
Remember our earlier emphasis on planning? In the example, the feedlot owners planned and projected to obtain a specific profit through value added (meat added) through intensive feeding of the steers or heifers purchased.
The correct selling time is based on two factors:
- The correct selling prices
- The correct selling weights
Refer to the calculation exercise above:
Example:
You are a feedlot livestock agent who bought 200 yearling steers that have been well fed on pastures during the winter, together with a grain supplement. Before purchasing the yearlings, you established that the average weight of the steers was 290 Kg.
You calculated the break-even purchase price against the costs provided by the feedlot accountant to you, at R 20.86 / kg. The initial purchase price was R 19.93 / kg.
The objective planned by the feedlot was to feed the yearlings for a period of 180 days, and to sell them at a final weight of 480 Kg at grade A2/3, at a selling price of R 19.93 / kg.
You as the feedlot owner and as per your plan, have fed the steers for 180 days, and achieved a final weight of only 470 Kg, at the expected grade A2/3.
The question is…Do you sell NOW because you have reached the planned timespan of 180 days, or are you going to keep on feeding until you have reached your planned weight of 480 Kg, and sell LATER?
In understanding the answer to the problem, let us look at Production Efficiency again:
Production efficiency is concerned with producing a good product (meat) with the optimal combination of inputs to produce maximum output of meat (weight) for the minimum cost.
COSTS:
Variable costs are those costs that vary depending on a company’s production volume; they rise as production increases and fall as production decreases.
Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output.
In the feedlot business, the two largest variable cost factors are:
- The cost of buying calves to fatten
- The cost of feed consumed to reach the final selling weight.
To ensure a good profit margin, or the level of most efficient production, where the feedlot produces the most meat (weight gain) against the lowest cost, the same 2 factors of variable costs are of crucial importance:
- Buy calves in as cheaply as possible, and
- Keep the feeding costs as low as possible.
It is however important to still feed the BEST QUALITY of feed, otherwise calves will not grow as planned.
Finding the optimum balance between the initial cost of the calves purchased, plus the weight they gained over a period of time, against the cost of the feed, and the fixed overhead cost of the feedlot business, reflects the production efficiency of the feedlot business. This is the main task of the Financial Manager.
9.7.6.19 HOW DO I DETERMINE THE OPTIMUM FINISHING WEIGHT?
To determine the correct point when the animal has reached the optimum finishing weight, is the most important financial and economic calculation to be made. At this point, the animals must be slaughtered immediately to ensure maximum profit.
Optimum weight is where the animal starts gaining less weight on a daily basis, against the cost of the nutritional value of the feed it is consuming. In other words, when the expensive nutrients in the feed are not converted to muscle anymore but excreted through the dung.
THE ANSWER:
In the initial financial plan, the objective was to buy 200 calves at 290 kg, to feed them at a variable cost over a period of maximum 180 days, so that they must gain 190 kg’s of muscle, to be sold at a weight of 480 kg.
Let’s draw a graph of the plan and problem:
WHEREAS:
Point A =The planned point of production efficiency that determined the initial purchase price
Point B = The weight gained over the planned 180 days, and against the fixed cost of feed
Area C = The unknown or grey area. Should I spend money on feed for another 10 days, to try to achieve 480 kg’s selling weight, or should I sell now?
CALCULATIONS:
Current scenario:
|
Purchase price |
R 19.93 / kg |
|
Starting weight |
290 kg |
|
Final weight achieved after 180 days |
470 kg |
|
Weight gained after 180 days |
180 kg |
|
Current cost per kg weight gain given by the accountant |
R 18.50 / kg |
|
Starting weight |
|
|
1. Cost of feeders
2. Cost of gain
3. Total cost
4. Margin/ kg weight |
= x Buying price R/kg Final weight = 290 kg / 470 kg x R 19.93 = R 12.30 / kg Gained weight = x Feeding Cost R/kg Final weight = 180 kg / 470 kg X R 18.50 = R 7.09 / kg = Cost of gain + Cost of feeders = R 7.09 + R 12.30 / kg = R 19.39 / kg = purchase price – total cost |
= R 19.93 / kg – R 19.39 / kg
= R 0.54 / kg
5. Profit per head = Margin / kg weight X Final weight
= 0.54 ‘kg X 470 kg
= R 253.80
EXPECTED SCENARIO TO FEED FOR ANOTHER 10 DAYS:
|
Purchase price |
R 19.93 / kg |
|
Starting weight |
290 kg |
|
Final weight achieved after 190 days |
480 kg |
|
Weight gained after 190 days |
190 kg |
|
Current cost per kg weight gain given by the accountant |
R 19.53 / kg |
|
Starting weight |
|
|
1. Cost of feeders
2. Cost of gain
|
= x Buying price R/kg Final weight = 290 kg / 480 kg x R 19.93 = R 12.04 / kg Gained weight = x Feeding Cost R/kg Final weight = 190 kg / 480 kg X R 19.53 = R 7.73 / kg |
3. Total cost = Cost of gain + Cost of feeders
= R 7.73 + R 12.04 / kg
= R 19.77 / kg
|
4. Margin/ kg weight |
= purchase price – total cost |
|
|
= R 19.93 / kg – R 19.77 / kg |
|
|
= R 0.16 / kg |
|
5. Profit per head |
= Margin / kg weight X Final weight |
|
|
= 0.16 / kg X 480 kg |
|
|
= R 76.80 |
|
|
|
Result: Sell immediately!!!
