FC are those costs that occur regardless of the number of head produced. TotalĬosts (TC) include not only VC but also fixed costs (FC) such as depreciation, cost of capital, management, taxes,Įtc. Returns above total costs (ROTC) is the measure of the long-term economic sustainability of an enterprise. It is also critical to cover variable costs because any returns above variable costs (ROVC) go toward
These are the costs that must be covered each year because they are the measure of Variable costs (VC) are also called Direct, "Out of Pocket" or Operating Costs and include items such as feed, In the example budgets shown, there are two numbers highlighted - the first one being variable cost in $/Cwt. Used because it captures not only total herd costs but also calf crop percentage and weaning weights. Note that while the cost per cow is shown, the emphasis is placed on $/Cwt. Less: Value of cull cows, bulls and heifersĪnnual Buildings & Facilities Fixed Costs Example summary budget for a cow-calf enterprise in Georgia. The best way to make this determination is to begin with a budget similar to the one shown in Table 1. Regardless of the size of the herd, for cow-calf producers this means knowing the cost per pound of calf sold. Small or medium-size cow herds, the cost of production is a larger profit determinant than the marketing method. The first step in any successful marketing plan is to know the unit cost of production (UCOP). Market structure, the type of calf to produce, market outlets and seasonal price considerations. This publication addresses several issues associated with marketing calves - most notably, cost considerations, Light of potential cost and returns, selecting the most profitable rather than the most convenient alternative. The first step in becoming an effective cattle marketer is to recognize all your alternatives and evaluate each in Marketing means making choices about how or what product to produce, where to market it and when to price.Īs a result, marketers have some control over the price they receive. Market outlet and sell at the most convenient time. They produce calves that are the easiest to raise, sell at the most convenient The market desires, marketing that calf through the best outlet and at the best time. Profitable cattle marketing involves more than just getting the highest price. How much profit you makeĭepends largely on your ability to market your calves. With cow-calf operations, as with otherįarm enterprises, making a profit is the only thing that will keep you in business.
Most cattle produced in Georgia come from cow-calf farms and ranches. Mckissick, Professor Emeritus-Livestock Economics & Marketing Curt Lacy, Extension Economist-LivestockĬarole Hicks Knight, UGA Cooperative Extension
0 kommentar(er)
