INFLUENCE OF MATURE COW WEIGHT ON ECONOMIC EFFICIENCY IN BEEF CATTLE PRODUCTION

Abstract

Linear programming has been used to investigate with a farm level model the influence of mature cow weight on economic efficiency in beef cattle production. Four other factors are considered: (1) farm size, (2) herd size, (3) beef and feed prices, and (4) a marketing option (i.e. the facility to feed home-grown crops or to feed and sell home-grown crops). Intermediate prices represent Ontario conditions for 1972. The model describes straightbred production, and is integrated in the sense that it includes a cow–calf operation with replacements bred on the farm, a beef feedlot for steers and surplus heifers, cropping, and the labor and capital required for livestock and cropping. Farm gross margin was the criterion for comparing the 450 combinations of factors, as this was considered the most relevant criterion for the farmer. Comparisons were made only within farm sizes. Optimal plans did not always correspond in ranking for gross margin/cow, gross margin/kg and farm gross margin. In general, the larger cows produced larger farm gross margins. The most important exceptions were under conditions of high feed prices relative to beef prices, where intermediate or small-sized cows were most profitable, depending on the farm size. With high beef prices, economic values (as defined in the text) for mature cow weights ranged from 33 to 51 % of the market price for beef. At intermediate feed and beef prices, economic values were smaller, averaging $0.083/kg or 11.6% of the market price for beef. Because of the assumption in the model of proportionality in growth, the economic values for weaning weight and daily gain could be derived from those for mature weight, giving average values of $0.181/kg and $4.51 per 0.1 kg/day, respectively. With high feed prices (relative to beef prices), economic values were negative under most conditions.