Preliminary Results: 2008 Beef Cattle Enterprise Study

By Jonathan Shepherd, KFBM

In this study, two beef cattle enterprises are analyzed- calves sold at weaning (calves sold) and calves retained for at least 45 days after weaning (backgrounded).

Kentucky beef producers realized negative net returns (over all costs) for 2008 in both enterprise categories. However, both categories did realize positive returns above feed costs with an average of $6,347.38 and $12,052.40 for calves sold and calves backgrounded, respectively. Total feed costs associated with the calves sold group increased over 77% since 2003 and almost 40% for the backgrounding group. Non-feed cash costs increased for both groups from 2003 to 2008 by 51% for calves sold and 45% for backgrounding. Returns per $100 feed fed was $120.86 for calves sold in 2008, a decrease of over 31%. For calves backgrounded, this decrease was even more significant at 46.5% of returns per $100 feed fed of $126.20. For the calves sold enterprise, price received per CWT for market animals increased 7.8% from $85.50 in 2003 to $92.21 in 2008.

Prices received per CWT for breeding animals for this enterprise decreased from $45.87 in 2003 to $42.13 in 2008. For the calves backgrounded enterprise, price received per CWT for market animals increased 15.8% to $96.41 and for breeding animals an increase of 2% was realized to $47.67. Herd size increased on average since 2003 for calves sold, up approximately 32% to 104 cows and decreased 5.8% for the backgrounded group to 108.4 cows. Total pounds of beef produced increased for the calves sold enterprise: up 41.7% to 58,105 pounds for 2008. However, the calves backgrounded group showed a decrease in total pounds produced by 12% to 66,230 pounds. Pounds of beef per cow increased between 2003 and 2008 to 560.2 for the calves sold enterprise (increase of 7.9% from 2003) and decreased to 610.98 pounds for the backgrounded group (decrease of 7.3%) for 2008.