The 5 Profit Drivers In A Cattle Enterprise

Five important factors generally determine the profitability of a cattle herd. According to well-known cattle consultant, Barry Symons of Estcourt in KwaZulu-Natal, managing these factors can either mean extra profit in the farmer’s pocket, or it can render the farming enterprise unsustainable. He recently discussed the profit drivers in a cattle herd during a farmers’ day held at Elmic Beefmasters.

- Izak Hofmeyr

“The five factors that determine profitability are conception, productive female animals, weaning percentage (which essentially reflects herd health), marketing and cost reduction.”

He says reducing costs is a function of good management and an integral part of each of the other four factors. “Expenditure must be weighed against the potential increase in revenue it can generate.”

Higher conception rate

Barry emphasizes that an increased conception rate almost directly correlates with nutrition. “As such, nutrition is by far the most important factor when it comes to profitability.”

As an example of the impact a conception rate of 90% or more has on a farming enterprise, he pointed out that a herd of 1 000 cows (with 750 followers) with an annual conception rate of 80% will increase by only 48 animals in three years – provided that all dry cows and surplus weaner calves are sold and 80% of the weaned heifers are retained for breeding purposes.

In contrast, a similar herd with a conception rate of 90% would increase by 757 animals within three years if the same culling policy is followed. This means an additional 757 animals that can be sold if the herd is unable to grow any further.

Correcting nutritional deficiencies

According to Barry, the key to obtaining a 90% conception rate lies in correcting nutritional deficiencies.

The following factors affect nutrition:

• The correct carrying capacity on the veld to ensure the availability of enough roughage year-round.

• Optimal veld production through long rest periods and short grazing periods.

• Building-up of root reserves.

• Correcting nutritional deficiencies such as protein, by supplying the correct licks.

• Roughage reserves for seasonal shortages.

• Veld as the cheapest source of roughage.