Profitability of Preconditioning

Abstract

The objectives of this study were to assess the profitability of preconditioning calves in a commercial beef cow setting, and to determine factors associated with profit from preconditioning. The herd owner identified an overarching goal within the project: to supply a higher quality calf to the feedlot and capture the increased value of that calf to improve profitability. Results indicated that preconditioning was profitable for this example herd, with an average return to labor and management of $80.70 per calf per year for preconditioning. Returns ranged from $26.04 to $116.48 per calf per year, and profitability improved as the manager's experience with managing the preconditioning component of the operation increased. The preconditioning enterprise was profitable in each of the 11 years of the study. Factors related to profit from preconditioning included average daily gain, days-on-feed, cost of gain, and feed cost of gain. Health concerns in this example were minimal; morbidity was 0.09% (1 of 1,103) and mortality was 0.27% (3 of 1,103). Overall, returns to preconditioning were primarily due to added weight sold (63% of return to preconditioning) with the preconditioning health sales price advantage adding the remaining 37%.