261 Sorting strategy and effect of variation on profitability of a pen of feedlot steers

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Abstract Variation in feedlot cattle has a negative effect on feedlot profitability and beef products. Alternative sorting strategies may help reduce variation within a pen of feedlot cattle and improve beef product uniformity. A dynamic, deterministic model was built to predict growth, body composition, and carcass value for individual steers. Individual steer measurements for initial body weight (BW), frame size, and body fat percent were obtained from a set of Angus-based steers (n = 62; BW = 293kg) and used as initial values in the model. The model predicted individual steer BW, Yield and Quality Grades, and carcass values for each day in the feeding period. Total steer profit was calculated as carcass value minus feed costs and steer purchase price. Profitability was evaluated using four sorting strategies: 1) steers purchased, fed, and marketed as a lot without sorting; 2) steers purchased, sorted by BW at initial processing, and fed and marketed as two independent pens; 3) steers purchased and fed as a lot until midway through the feeding period, and then were sorted by BW into two pens that were marketed independently; and 4) steers purchased and fed as a lot and each individual steer was sold at the optimal time. Optimal marketing time was defined as the day profit reached a maximum value. Sensitivity analyses were conducted, changing all prices ± 10% while all other variables were held constant. Scenario 4 was most profitable, with a mean profit of $161.78 ± 144.79 per steer, representing the greatest possible profit. Scenario 1, the practice commonly used by commercial feedlots, was the least profitable ($122.45 ± 139.65). Scenario 2 ranked third ($125.10 ± 137.42), and Scenario 3 ranked second ($127.85 ± 137.73), but mean profit per head only differed by $2.75, indicating steers grew at a relatively constant rate, and there was no additional benefit in sorting mid-way through the finishing period versus at initial processing. Body weight at harvest and carcass weight varied across scenarios, but mean quality grade was similar for all four scenarios. Mean profit per was most sensitive to grid base price. In scenario 1, a ± 10% change in grid base price resulted in a 145 and –136% profit change, respectively. Sorting feedlot steers into similar feeding and marketing groups reduces pen variation, increasing carcass value, decreasing feed costs, and improving overall profitability.