Breeding System, Cow Weight and Milk Yield Effects on Various Economic Variables in Beef Production1

Abstract

Records on 616 spring- and fall-calving cows and their calves, of which 227 had feedlot information, were used to study breeding system, cow weight and milk yield effects on various measures of gross margins. Equations involving combinations of production system (cow-calf, feedlot, combined cow-calf and feedlot); beef-to-feed price ratio (low, average, high) and other factors, including feedlot overhead expense, overweight carcass discounts and retail yield premiums in addition to feed cost, were used to calculate returns less variable costs. Breeding systems included Hereford (H), Simmental (S), large rotational beef (LRB), small rotational dual purpose (SRD) and small rotational beef (SRB). Ranking of breeding systems was dependent upon beef-to-feed price ratio and definition of gross margin. Breeding systems with high feed requirements ranked higher as beef-to-feed price ratio increased. Increasing cow weight increased most measures of gross margin, although not to a significant extent. The effect of increasing cow weight became more positive as beef-to-feed price ratio increased, and when the combination of overhead, overweight discounts and retail yield premiums was considered. Increases in milk yield, which included the effect of associated changes in cow weight, generally had a positive, significant effect on gross margins. The effect of milk yield rose with increased beef-to-feed price ratio. Cow weight and milk yield effects were greatly influenced by production system and beef-to-feed price ratio, indicating a need for the application of systems analysis on an individual farm basis for the determination of optimum levels of cow weight and milk yield.