Bernard Doré, agronomist Bovi-Expert Advisor
Transcript of Bernard Doré, agronomist Bovi-Expert Advisor
Bernard Doré, agronomist
Bovi-Expert Advisor
West-Montérégie Beef Day
Valleyfield, December 6th 2014
Cattle prices have exploded…
Your situation versus the industry
Beef management 101
My main targets
Winning strategies
Monetary impacts
Your tool box
Take home messages
“ Experts say; plan accordingly when cattle prices are strong. “
Reference : FCC Express, November 14th, 2014, Richard Kamchen
Commercial herd with 50 cows
Selling 40 calves in the fall (20 steers et 20 females)
Selling 5 culled cows
Price reference = Week of November 10 to 17th
Reference : FPBQ
2013 Income Number $ / lb $ / head $ Total
20 steers (647 lb) 1,58 $ 1022 $ 20440 $
20 females (554 lb) 1,40 $ 776 $ 15520 $
5 cows (1500 lb) 0,6022 $ 903 $ 4515 $
40475 $
2014 Income
Number $ / lb $ / head $ Total
20 steers (649 lb) 2,64 $ 1713 $ 34260 $
20 females (559 lb) 2,41 $ 1347 $ 26940 $
5 cows (1500 lb) 1,0068 $ 1510 $ 7550 $
68750 $
Low cattle inventories in North America
Natural disasters (drought, polar vortex…)
Average age of the beef cattle producers
Lack of young & motivated new producers
Strong demand for beef meat
Other meat supply (pork, chicken)
Grain prices, cattle feeding costs
Profit margin
…..
I stay calm and I take time to visit with my advisors
Ask yourself the following questions :
Why is the cattle market suddenly so strong ?
Is it temporary or do we see a new trend happening?
How can I take advantage of that?
What are going to be the long term effects on my farm ?
What is my actual situation ?
What are my needs, my priorities ?
This is when you must be a GOOD MANAGER !
GOOD MANAGERS make a multitude of small decisions to collectively keep costs low relative to the value of the weaned calves they produce.
EXCELLENT MANAGERS do the same, but ALSO understand and find leverage in the production system. These managers make a few strategic changes that have long-standing systematic benefit to the operation.
ALL MANAGERS need a clear view of the financial position of the ranch and the drivers of net income and return on assets.
Clay P. Mathis, King Ranch® Institute for Ranch Management, BIF 2014
What are my actual results (data) ?
Am I going to get some $ from the ASRA program ?
What do I want to improve ?
Do I have the resources (land, feed, $$…) ?
I look at my data and I make comparisons
(« benchmarking »)
I check my farm budget (financing needs)
I work on an action plan with my advisor
I go by order of priority (productive investment)
Lead group Bottom group Variation
Number of farms 18 18
Number of cows, head 140 97 43
Pounds of calves, lb/cow 586 488 98
Total calf sales, lb 79 265 46 972 32 293
Sale weight, lb / calf 687 668 19
Calves born, head / cow 0,97 0,87 0,10
Calves weaned, head/cow 0,90 0,78 0,12
Calves sold, head/cow 0,86 0,73 0,13
Cow replacement rate, % 11 % 16 % - 5 %
Forages (excluding pastures), kg/cow 4 701 5 477 -776
Supplement, kg/cow 242 200 42
Cultivated land, ha/cow 2,20 1,74 0,46
Hay land, ha/cow 1,28 0,83 0,45
Hay yield, t/ha 4,68 4,68 0
Pastures, ha/cow 0,75 0,76 - 0,01
Labor, hours/cow 35,6 39,7 - 4,1
CENTRE D’ÉTUDES SUR LES COÛTS DE PRODUCTION EN AGRICULTURE _CECPA_ MARS 2012
Calves born + 10 %
Calves weaned + 12 %
Calves sold + 13 %
Weight/calf sold + 19 lb
Calf produced/cow + 98 lb
ANALYSE COMPARATIVE, VEAU D’EMBOUCHE - 2010
CENTRE D’ÉTUDES SUR LES COÛTS DE PRODUCTION EN AGRICULTURE _CECPA_ MARS 2012
Beef herd of 100 cows (lead group)
97 calves born (+10 calves)
90 calves weaned (+12 calves)
86 calves sold (+13 calves)
+ 19 lb / calf sold
Calves sold @ 687 lb
Additional 13 calves
Avg price (week of October 27th,2014, m-f, 601-700 lb) :
$ 2,55 / lb
13 x 687 lb x $ 2,55 / lb
+ $ 22 774
All my cows are pregnant
They calve annually by themselves, around the same time
I do lose as less calves as possible (mortality)
My cows are rebred back within normal delay
I get as much calves weaned as possible
My calves are gaining weight rapidly
I ship heavy & uniform calves to the auction
I keep an eye on my operating costs
I write down notes, which help me making decisions
Genetic
Cattle feeding
Reproduction and animal health
Pasture management
Forage production and storage
Soil improvement
Cattle performance
Data & information management
Cattle sales
Financial management
Herd sire with known genetic potential (and / or AI)
Data & qualities; EPD, ABC, indexes, conformation, specific bloodlines, disposition, carcass qualities, genomic…
Crossbreeding (triple, rotation cross)-Commercial herd
Raising/ purchasing F1 females
High-quality genetic = Investment
Please do your homework !
A. Bull’s disposition
B. Price (as cheap as possible)
C. Bull’s EPDs, ABCs, indexes…
D. Bull’s conformation
E. All these answers
Forage testing (adjust ration according to
body condition, temperature…)
Low waste hay feeders
Rations for dry cows, lactating cows,
first calvers, heifers
Heifers should not be fattened
Free choice mineral all year long
Cattle feed by-products (consider price / value)
Creep feeding (figure out costs / benefits)
Get your cattle scored (BC; 1 to 5)
…and don’t forget quality water !
Make sure your herd sire can do the job !
(« breeding soundness evaluation »)
Housing & care of your herd sire (winter)
Records & notes (heat, AI,…)
Pregnancy check
Estrus synchronization (timed AI or others)
Management of the breeding period (60-70 days)
Preventive health cares (vaccines, de-wormers, …)
Cattle chute / corral / scale
Manage stocking rate according to grass availability
Respect a rest period
Consider rotational / stripped
grazing
Make hay if required
(early in the season)
Get the hay field’s re-growth grazed out (fall)
Seed mix recommended for grazing (all-season)
Water in quality & quantity in all paddocks
Frost-seeding
(alternative)
Identify dry hay / silage lots
Protect your dry hay (shelter, plastic…)
Making it or buying ? (pencil that out)
Feed quality to growing cattle
Start earlier !
Get regular soil analysis
Identify / correct drainage problems
Apply lime as per the identified recommendations
Clean ditches
Cattle manure
Weigh your cattle, record performance data
Invest in a cattle scale
Manage your breeding heifer’s growth
Cull cows with problem (age, feet & legs, udder, low performance…)
Review your annual profile (per cow, global, per sire)
Cow age and cow productivity (When is she too old?), The Stock Exchange, November 4, 2014
(Source: Genho, 1984 Proceedings of the Beef Cattle Short Course, University of Florida)
Trait Average Top 25 %
Calving difficulty - %
4,0
5,9
Weaned calves / cow - %
83,6
96,0
Pre-weaning calf mortality - %
7,4
7,0
Average calving interval - days
367
364
Average age at weaning - days
234
248
Average weaning weight - lb
651
719
Birth– weaning ADG - lb / day
2,41
2,54
Up-to-date cattle herd inventory (ATQ)
Specific reading (Bovins du Québec, Cattlemen…)
Beef Days / « Congrès du bœuf » / Lessons
Internet searches
Advisory service (Bovi-Expert)
A. Bovins du Québec
B. Internet (beef cattle related sites)
C. My Bovi-Expert advisor
D. Cattlemen magazine
E. All these answers
“SELL HIGH, BUY LOW”
Follow market trends (Internet, advisors…) www.finviz.com
Plan the sale of your calves
Pre-conditioning
Special auctions /
private-treaty sales ?
Consolidate your loans, reduce interest charges
Cash flow budget (5 years)
Group purchases (lime, fertilizers…)
(Regroupement des achats: www.rda2001.com)
Plan according to a lower ASRA cheque (or no cheque)
A. Discussing once with my banker
B. Reviewing last year’s bills
C. Studying my financial statements & cash flow budget
D. Doing nothing specifically
Spending all your extra cash from your cattle sales
Building a new barn (without needing one)
Buying more land (before improving your own)
Cancelling your ASRA coverage
Buying a 200 HP tractor to make hay !
etc
A 2 % improvement in reproductive efficiency =
Cost of production reduction : $ 16,50 / head
Financial impact on Canadian beef industry (2008 – 2012)
+ $ 176 Millions
Beef Cattle Research Council, Results Report (2009-2013)
A 1 % reduction in pre-weaning calf mortality =
Cost of production reduction : $ 7,50 / head
Financial impact on Canadian beef industry (2003 – 2011)
+ $ 44 Millions
Beef Cattle Research Council, Results Report (2009-2013)
25 % Inférieur Moyenne 25 % Supérieur
CARACTÈRES ÉVALUÉS
Âge au sevrage (j) 220,5 231,9 245,5
GMQ naissance-sevrage (kg/j) 0,968 1,053 1,143
Poids réel moyen au sevrage (kg) 251,0 283,5 321,0
Taux d'efficacité reproductive (%) 73,5 85,6 97,4
Intervalle moyen de vêlage (j) 377,3 372,1 368,1
REVENU
Revenu estimé par veau ($/an) 934,04 1 245,83 1 622,52
COÛT DE PRODUCTION 6,87 6,87 6,87
Frais monétaires par veau ($/an) 1 214,39 1 214,39 1 214,39
Frais non monétaires par veau ($/an) 878,41 878,41 878,41
BÉNÉFICE PAR VEAU
Bénéfice avant charges non monétaires par veau ($/an)
(280,35) 31,44 408,13
Bénéfice après charges non monétaires par veau ($/an)
(1 158,76) (846,97) (470,28)
ÉCART PAR RAPPORT À LA MOYENNE ($) (311,79) 376,69
Economical performances (1996 to 2013)
Profit margin variation / calf / year :
(between bottom 25 % and top 25 %)
+ $ 648 / cow / year
Beef herd with 100 cows :
+ $ 64 800
Bilan au PATBQ de 1996 à 2013, Performance économique, Hervé Herry, 9 octobre 2014
Breeding / crossbreeding plan
AI catalogs / test station reports
Forage, grain, soil analysis
Cattle health prevention program
A rotational grazing plan / crop management plan
Breeding, weigh, ID records
Annual financial statements
A business plan, define objectives
Many ideas all at once !
Go one step at a time
Know your practices, set priorities
Take time to visit with your advisors
Pay debts, payables
Consider advanced purchases (seeds, fertilizers…)
Stay on target with your budget
Get a 5 year cash flow budget
Invest in good genetics (qualified sires, AI, F1…)
Consider new alternatives (custom work, hay purchase, sharing equipments…)
Be better installed (corral, cattle chute, scale)
Herd expansion ? (not at any price, PAEF)
Keep an eye on markets (« futures »)
Be curious and visit other farms
Get our youths motivated
Reduce stress
Enjoy life beside your farm business
Take some rest / vacation
Be proud of being a beef cattle producer !
Beef cattle research council (2009-2013); Results report, January 2014
Bilan au PATBQ de 1996 à 2013, Performance économique,
Hervé Herry, agronome, 9 octobre 2014
“Consider investments in efficiency with extra cattle”, Southeast Cattle Advisor, September 19, 2014
« Enfin de bons prix pour le bœuf », par Martin Matte, agr.,
TCN-Montérégie, 17 septembre 2014
“Economic considerations for profitable cowherds”, Clay P. Mathis, BIF 2014