DNA Dialogue – Days on Feed

January 11, 2024

Dr. Galen Erickson, Professor of Ruminant Nutrition at University of Nebraska Lincoln, discusses the cost breakdown of days on feed and different marketing strategies in this DNA Dialogue episode.

 

Video Transcript

[Music]

Narrator: DNA Dialogue is brought to you by Igenity Feeder powered by Neogen.

TITLE CARD: DNA Dialogue — Igenity® Feeder — powered by Neogen®

[The screen shows Dr. Galen Erickson speaking.]

SUPERIMPOSE: Galen E. Erickson, Ph.D.

Dr. Galen Erickson: Well, when most people purchase calves they have a target number of days in mind and it's usually based on incoming weight and the type and class of cattle they purchase.

[The screen cuts to cattle feeding in a feedlot, other scenes from a feedlot, and cuts back to Dr. Erickson.]

Dr. Erickson: But there are other ways to actually try and estimate optimum days on feed and of course our trend is to make cattle bigger and bigger. And, really, that's because cost of gain in general. In other words, the cost that you're putting into that animal per day is generally less than the cost, or price, you're receiving on them cattle per pound.

TITLE CARD: Marginal Cost = Marginal Revenue

Dr. Erickson: So, really, technically speaking, from an economic term, we should feed until our marginal cost, the cost for that day, equals our marginal revenue, which is obviously the price per pound.

[The screen shows Dr. Galen Erickson speaking. The camera cuts to scenes from a feedlot and then back to Dr. Erickson.]

Dr. Erickson: The hard part in that is knowing cost of gain on a daily basis and there's a lot of debate about that in the industry. Many industry experts feel like the cost of gain is going up pretty dramatically at the end of the feeding period. Whereas, I think, the data today show that actually cost of gains fairly level and if anything suggests we should be making cattle bigger and bigger which is why the trend has been to make cattle bigger. The only other thing I'd mention that's really important if you're a feedlot operator is how are your marketing the cattle.

TITLE CARD: Live - 1 price based on live weight

Dr. Erickson: So really there's three general methods. Live. So on a live weight basis one price for all the cattle based on live weight.

TITLE CARD: Carcass - 1 price based on carcass weight

Dr. Erickson: Carcass weight basis, sometimes called dress basis or in the beef, that's again one price on a carcass weight.

TITLE CARD: Grid - based on yield and quality grade

Dr. Erickson: Or a grid which is obviously carcass weight but also premium and discount for yield and quality grade.

[The camera cuts to scenes from a feedlot and then back to Dr. Erickson.]

Dr. Erickson: I bring that up because if you're a live cattle marketer and selling cattle on a live basis, cost of gains are probably going up more dramatically at the end than if you're a dressed basis or grid based marketing program. So how you market cattle influences optimum days on feed but really it's about knowing your cost of gain on a daily basis.

[Music]

TITLE CARD: DNA Dialogue — Igenity® Feeder — powered by Neogen®

TITLE CARD: Neogen logo. Igenity Feeder.

[The screen shows graphics of two cows eating corn from a trough. The camera zooms in on the far cow to reveal the DNA structure of the cells.]

Narrator: Are you a cattle feeder looking to manage for a stronger and more profitable set of cattle? Look no further than Igenity® Feeder. Igenity Feeder utilizes DNA to gain insight into your cattles genomic potential.

SUPERIMPOSE: Performance. Quality. Economic Endpoints.

Narrator: With the information to predict performance, quality, and economic endpoints for cattle feeders. Animals are scored and ranked in a simple format, driving more precise and accurate management decisions.

[The zooms out to show the graphic of two cows eating corn from a trough.]

SUPERIMPOSE: The Power to Predict.

Narrator: Igenity feeder gives you the power to predict days on feed, manage variability within lots, characterize carcass performance, and focus on metrics important to you and your operation. With the data provided you will identify superior animals earlier and maintain high operational efficiency. Maximize your profit and optimize performance with Igenity Feeder.

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[Music]


Category: Beef, Dairy, Igenity® Profiles, FAQs