Getting a better grip on production costs

摘要

COST of gain (dollar/kg gain) drives profitability and determines break-even for cattle purchase and sale. It is therefore critical that cost of gain includes all costs associated with feedlot operation. Capacity to accurately determine these costs allows feedlot to investigate areas in which improvement in operation efficiency are required. The major contributing factors to cost of gain include occupancy, ingredient value at commodity shed, feed delivery operation and operational fixed costs. Before struggling with assigning activity costs, feedlot can begin with recording time (labour, machinery hours) for each activity and then determine cost (dollar/hr).