Identification and Management of Critical Control Points in the Cow-Calf Enterprise for Achieving and Maintaining Consistency and Low Cost of Production: Summary of Integrated Resource Management-Standardized Performance Analysis Results

Abstract

Integrated Resource Management-Standardized Performance Analysis (IRM-SPA) for fiscal yr 1995 was completed for 10 commercial cow-calf operations in southwestern Colorado. The ranches varied in size but operated in consistent production environments. Production and financial measures were examined and compared between operations. These included reproductive performance, weaning performance, and financial and economic costs for feed, grazing, and operating cost. Previous to a similar baseline analysis for fiscal yr 1994, the producers were not completely aware of the actual cost of production for their respective operations. The results of the analysis show that 7 out of the 10 operations had financial break-even values that were higher than the market price in the fall of 1995. Examples are provided for how a management tool like IRM-SPA can be used to identify critical control points for lowering costs in the cow-calf enterprise. IRM-SPA provides baseline data that can provide a starting point for monitoring progress of an individual operation, and it can serve a comparison with other operations within a region, production system, or the entire country, as shown in the presentation of these results. More importantly, it measures the cost per unit of production, which is an important variable that every cow-calf producer whose goals include continuing to participate in the beef production chain should know.