September 6, 2013
US cattle raising cost rises
Raising cattle in the US is expensive as it takes about US$750 per cow consisting of feed costs, visits to vet and renting land.
"Our cost of operation keeps going up on the cattle all the time. Rent on land has gone up. Feed costs have gone really high," said cattle producer Wayne Nelson.
Feed costs represent about 70% of the total input per cow, according to SDSU Extension Cow/Calf Field Specialist Jim Krantz.
"With US$15 beans and US$8 corn like we had last year it's really more profitable for producers to put in crops than cattle. That's something that's going to continue to stress the cattle sector," said Krantz.
Despite favourable prices at places like the Hub City Livestock Auction, Dennis Hellwig knows feeder cattle producers are spinning their wheels.
"He hasn't been coming out too well because the feed costs are too high. Last year the corn went up and then the feed went up, so they didn't come out very good on the fat cattle," said Hellwig.
But, that's not to say raising cattleisn't profitable anymore.
"The guys that are raising the calves, the cow/calf guy has been getting good prices for his calves for the last two years," said Hellwig.
Added Krantz, "300-400 pound calves bringing over US$2 a pound which is something we haven't seen in history."