Evaluation of Feed Efficiency in Growing Bulls, A 3 Year Summary
Ted Perry, Nutritionist, LandOLakes / Farmland Feed, LLC.

Feed efficiency has always been a key factor in beef cattle profitability. Feed costs represent over half of all production costs. Any increase in production per unit of feed will have a positive effect on profitability. In a recent study at Cornell University investigators demonstrated the relationship between increased feed efficiency on profitability. The following table from that research report shows how dramatic the effect on increased feed efficiency is on feedlot profitability.

In this analysis, a 10% increase in daily gain resulted in a 7% increase in DMI and improved profits by 18% due to lower non-feed costs and decreased feed used for maintenance. However, when feed intake remained constant and efficiency was improved by 10%, the resulting profits were improved by 43%. In short for feedlot profitability, feed efficiency is 6 times more important than daily gain.

Cow-calf operators face the same efficiency opportunities as the feedlots. However, it is much more difficult to get efficiency numbers in a cow-calf operation. The 2000 Iowa Beef Cow Business Record, states that feed cost is the most critical control point for herd profitability. Based on this data, over 50% of the herd-to-herd variation in profitability is accounted for in feed costs. Benchmarked feed costs from 1995-2000 for herds is $195 per cow. Feed costs per cwt. of calf produced was $43.80 of the $72.23 (60.6%) of the total financial cost to produce a calf. A 10% improvement in cow efficiency (10% less feed, with the same amount of weight sold), are summarized in the following table.

High Feed Efficiency Q & A

What kind of effect can utilizing a high feed efficiency bull have on your herd?
Current research shows the results can be immediate. Research from the Maynard Cattle Company in Australia shows that using high efficiency bulls on a 120-day test resulted in a feed savings of 6 percent on their yearling progeny. In the high feed efficiency mature cow herd, there was a feed savings of 5.5 percent, with no adverse effect on weight of calf weaned per cow exposed. These gains were made in just the first generation of selection for feed efficiency.

Why should you select for feed efficiency?
In the past, breeding programs have concentrated on increasing production with little effort directed towards lowering costs of production. However, the cost of feed is the single largest cost in most animal production systems. The cost of feed for beef production not only includes direct feed costs, but also includes all costs associated with pasture and fodder production, as well as the interest and opportunity costs of land used to produce pasture and fodder crops.

How does this affect your net profit?
Based upon data from the Horton Feedyard near Greeley, Colorado, when it comes to impacting next profit, a 20 percent improvement in feed efficiency is six times as important as a 20 percent improvement in average daily gain and nine times as important as a 20 percent improvement in quality grade ($62, $10 and $7 per head respectively).