LIMOUSIN TODAY April2019_WEB | Page 48

Management Biological Results Calf body weight was on average increased by 44 lbs, verses non-creep fed calves, at the time of weaning. Average conversion rate was about 8.44 lbs of feed to one pound of gain. On average, 3.85 lbs of feed per calf per day disappeared from the feeders for a total of 385 lbs per calf. At slaughter, creep fed animals were not found to statistically vary from non-creep fed calves in marbling. However, the added weight gain due to creep feed did carry over to live weight, increased hot carcass weight (HCW) and back fat. Economic Results The top portion of Table 1, “Feed Intake Summary” breaks down creep feed consumption by year on a per head basis. The total amount of feed used over the course of the study was approximately 56,050 lbs with a total cost of $9,306.58, making the average cost per pound just under $0.17/lb. With the added costs listed towards the bottom of the table in the “Creep Feeding Costs” portion, feed costs averaged $63.49 per head per year. Equipment expenses averaged $10.46 per head per year. Labor and management costs were estimated to average $16.48 per head annually for the period. Added transportation to feed was estimated to be $1.44 per head per year making the averaged total expense for feeding creep per head per year $91.87. Table 1 also shows the costs for each year which notably varies from about $69 to $110 per head per year. Before getting to the final results, it should be noted that the methodology used to calculate the true economic outcome for this decision is deceptive and requires special attention. For instance, it is often tempting to simply compare the value of the feed consumed verses the average expected value per pound of gain. While this simplifies the calculations, it hides several potential pitfalls. For instance, the price slide effect due to differences in calf weight. Looking at the revenue summary in Table 1, it is clear that the price slide is real and varies by year. The 2014 year showed that the creep fed calves were valued $0.26 less per pound than 46 | APRIL 2019 the lighter calves, making the lighter calves more valuable on a per head basis, without considering added difference in the cost invested in creep feed. The price slide had a more significant impact on profitability than expected. Over the three years, there was an average price slide loss of $83.26/ calf. This is a loss in overall value due to a decrease in the change in size of the animal. On the other hand, the average increase in calf value purely due to weight gain was $97.89/calf. The difference between these two averages is the average net effect due to creep feeding, which was $14.63/ calf. This value represents the available money to pay for creep feeding, which was far less than the estimated average total costs of $91.87/calf. These average values do hide some of the important differences between each year. Therefore, we suggest that the price slide would play a key role in making the decision to creep feed or not.