I’ll bet you, your 10 cents, heavier wins.
Why do people get excited about getting the extra .10 cent premium that comes with owning a black coat? Does this .10 cents actually mean more money in the pocket? The answer relies on weight for age.
The simple truth is we get paid for weight, more weight, quickly, will mean more profit.
The example below shows there is only a 21kg difference in live weight to offset a .10 cent premium on a feeder steer.
So what happens if you gain even more weight (and a premium)?
What about if we take into account the salvage value of the cull females where there can be upwards of $110 per head with only a 75kg increase in body weight.
So, for a herd of 100 cows, with a 90% pregnancy rate, 38 sale heifers (10 retained), 10 cull cows and 47 feeder steers (from table 1) the total difference in profit will be more than $5,342*, and that’s without including a premium.
If you add a premium (table 2) the difference in profit will be greater than $7,318.
Isn’t weight the free lunch?