Carcass-based measures of cattle performance and feeding profitability

Closeout records for 67,570 lots of commercially fed steers and heifers, together with individual carcass records for animals in each lot, were analyzed, holding prices for feeder cattle, beef carcasses, and feed at constant levels, to characterize relationships of carcass-based measures of cattle performance to feeding profitability. Economic effects of variation in carcass-based cattle performance measures were manifested either as differences in cost per unit of carcass gain or as differences in value added perunit of carcass gain (value of carcass gain). Carcass-based G:F was the primary determinant (P < 0.0001) of cost of carcass-based gain (carcass gain) and the single most important contributor (P < 0.0001) to differences in net return per animal. Also, cost of carcass gain was increased (P < 0.0001) by increased medical expenses and mortality rate. Carcass-based ADG and days on feed, due to their combined effects on total amount of carcass weight gained during finishing, were the 2 most important determinants (P < 0.0001) of value of carcass gain and the second and third most important contributors (P < 0.0001) to net return per animal. Variables associated with carcass grid price also contributed (P < 0.0001) to differences in value of carcass gain; however, amount of value added per unit of carcass gain was more strongly driven by increased weight than by carcass grade performance. Profit was maximized by adding weight until cost of carcass gain exceeded value of carcass gain, which required finishing cattle to comparatively heavy projected HCW endpoints: 422 to 429 kg for steers and 378 to 390 kg for heifers. This study demonstrates methodologies for calculating carcass-based performance and economic metrics that can be used to optimize cattle feeding profitability for lots of cattle marketed on an individual carcass basis using a value-based grid. Additional research is warranted to examine the effects of fluctuations in cattle prices and feed cost on economic relationships and weight endpoints identified in this study.