Raising beef cattle for profit can be challenging. But for producers willing to adapt to the rapid changes and ups and downs this industry brings, you can find the recipe for great success. Not sure where to start? We have 10 tips to help you raise beef cattle profitably, whether you're an experienced producer or just starting out.
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With so many moving parts in a livestock operation, it can seem like planning isn't a valuable investment of time. But having a good strategy that includes flexibility to adapt to changes as they occur can increase your profits. Having a resourceful plan to care for your most important asset – your livestock – is possiblehelp your businessthrive.
Here are our 10 tips to maximize your profit-making beef cattle. Every surgery is different, so it is important to evaluate each strategy and decide which is right for you. Ready to start farming for profit? Here are ten strategies to consider:
- Choose the right breed of cattle
- Take care of yoursSoil and feed
- Protect and prioritize animal health
- Maintain and manage your facilities
- Embrace the lifestyle of raising beef cattle
- Improve your marketing skills
- Improve business operations and management
- Develop your financial plan
- Add a contingency plan
- Become a lifelong learner
We've put together some helpful tips for the pros to help you raise beef cattle profitably, and hopefully help you avoid some mistakes along the way! If we missed any important tips, please add them in the comments below.
1. Choose the right breed of cattle
Choosing a breed of beef cattle goes beyond choosing the breed that sells the most.
- Think about your breed of cattle in relation to your climate.
- Different types of cows will do better in different climates. Even businesses living in the same area can experience differences in microclimate, with rain showers or dust storms occurring more frequently than your neighbors.
- Select livestock based on their breed and the weather conditions they can withstand.
- If your region has experiencescold, bitter conditions in winterThen add a breed, such as the Scotch Highland or Galloway, that is used to surviving and foraging in harsh winters.
- In temperate and warm climates, the American Criollo breeds, Senepol, Ankole-Watusi, Sanga and any Zebu breed of cattle will excel.
- Consider crossbreeding and breeding different types of cows as a diversification method. Breeds such as Dexter, Welsh Black and Normande were bred as smaller, more manageable breeds of cattle.
- Consider current and future market trends to maximize your income from producing beef cattle.
- One of the best ways to choose your breed is to explore the trends in the local market. Other ranchers and local industry professionals can provide specific insight into the needs of your market. Understanding the market is essential when breeding for profit.
- Researching the current livestock supply in your area and current industry trends will help you determine the best opportunity to grow or change your livestock breed for your climate and goals, and will make you more viable in the marketplace .
- Evaluate and optimize your breeding system.
- Select the best bull for the cow that will produce the highest quality calf for your market.
Take into account the different breeding technologies available and the associated costs. With this information in mind, you should make an informed decision about breeding for your business.
The successful livestock farmers [are] the best livestock farmers. My tip would therefore be: follow a practical rotational or management-intensive grazing system.
– Eldon Cole, University of Missouri animal husbandry specialist
2. Take care of your soil and food
Once you've assessed your breed of cattle, you'll need to assess your land and feed needs for the livestock you raise. Consider feed production volumes, soil quality and feed management systems.
- The amount of forage your land produces should be sufficient to sustain your livestock. Different types of cows eat more feed.
- This is where your breed evaluation can influence other decisions. Dextere or Normandes may be a better choice if you have limited land or feed production capacity.
- The weather and pregnancy influence nutritional requirements. Budget for feed purchases if necessary and understand how these costs impact your profit margins.
- The soil management system you use improves forage production.
- Grazing techniques can improve forage quality and production.
- Use soil testing to determine if there are changes that will improve feed production and reduce costs.
- Integrate all aspects of your land and feed management into a feed management system for optimal nutritional levels in cattle.
3. Protect and prioritize animal health
Good nutrition is the foundation of healthy and productive livestock, but other health factors must also be addressed. Injury, illness and poor health can cost a lot of money in a livestock business. Prevention is the best solution. Involve your veterinarian in planning and strategy sessions, keep livestock vaccinations up to date, and treat injuries and illnesses promptly.
Vaccinating livestock is good health and good business practice. Your veterinarian can recommend necessary vaccines based on the disease risk and life stage of the livestock. Early treatment of diseases and conditions can reduce overall costs, for example by minimizing the spread of disease with increasing livestock slaughter weight.
Although a lot of money and time must be spent developing and implementing a solid preparation and/or arrival program, this is the best way to achieve your herd's health goals.
– Jake Geis, thecowdocs.com
4. Maintain and manage your facilities
Maintaining and managing your facilities will increase your success in raising beef cattle. Good livestock management facilities are an investment in the success of your business as they can improve efficiency, support safe livestock handling and keep livestock stress low (which improves health!).
Livestock handling systems must protect the animal and its caretakers and keep both safe. Fences, gutters, sheds and stables should all be evaluated regularly with regular maintenance and cleaning schedules. Placing livestock handling systems near access to water and electricity is one way to increase your efficiency. Investing in the maintenance and improvement of your facilities can quickly pay for itself in reduced labor costs, time savings and improved livestock profits due to reduced stress.
5. Embrace the lifestyle of raising beef cattle
Cattle ranching isn't just a way to make a living - it's a way of life!
– Debbie Lyons-Blythe, kidscowsandgrass.com
Raising beef cattle is a lifestyle, whether you do it full-time or alongside your 9-5. It is a challenging and incredibly rewarding profession that can be financially lucrative if you have the right strategy. The dedication to raising beef cattle goes far beyond a traditional full-time job, as do the rewards and satisfaction.
There are many ways you can reduce stress and truly embrace the lifestyle. These include proactively managing and maintaining your facilities, acclimating livestock to your treatment system, and breeding different breeds to diversify your business.
6. Improve your marketing skills
Strategic marketing plans ensure thriving livestock production businesses. Consider adapting your existing marketing plan (or creating one if you haven't already), expanding your network, finding new ways to protect your company's reputation, and using your story in your marketing.
If you are not familiar with creating a marketing plan, your marketing plan should consist of deliberate activities and strategies used to promote your product. It often also contains your prices and information about your sales channels. You should schedule regular reviews of your pricing and sales channels to ensure your operations remain profitable and make changes as necessary.
Networking allows you to make new connections that can lead to market advantages. It is also a good idea to develop strategic partnerships with other livestock operations and related companies. Always protect your personal and professional reputation.
Another option that is not considered often enough is using your story in your marketing. It sets you apart from the competition and helps develop your personal brand and reputation. Breeding for profit can be a challenge. Marketing skills can distinguish a profitable ranch from a struggling one.
7. Improve operations and management
Business and management skills are essential for every livestock farmer. Agriculture is a complex system consisting of many interconnected components. This helps improve efficiency and maximize your resources to produce the best possible product. Conduct ongoing assessments and analysis to ensure you are on the right track with your operation.
Through continuous analysis and evaluation, you will see your ranch's strengths and weaknesses emerge, and you will see opportunities for improvement. Use these assessments as a starting point to make informed decisions that can lead to bigger profits!
The best tip I have for anyone who raises livestock is to never be shy about telling your personal production story every chance you get!
– Bridget Bingham, Executive Director, PA Beef Council
8. Develop your financial plan
In any business, a strong financial plan is essential to ensure profitability. A financial plan can cover many aspects of your business, including day-to-day business expenses and income, planning for financial challenges, and reinvesting in the business. Financial plans for raising beef cattle should include budgets, tax information, insurance, and a business reinvestment strategy.
Budgets are living documents and must be regularly reviewed and adjusted. Include your utilities, feed, facilities, labor, equipment, operations, marketing, fertilizer and all other associated costs in your budget. Use income forecasts to make financial and operational decisions and ensure your budget is on track. Document expenses and income and maintain these records for tax purposes. Look for state and federal tax credits and grant programs that can increase profits and help you invest in equipment upgrades.
With insurance you are insured for your livestock farming against unexpected situations that may arise within your company. Your insurance should be sufficient to cover the land, facilities, livestock and people on the operation. Request multiple quotes and review your coverage regularly so that you are well protected in the event of an unforeseen situation.
Business profits can be reinvested to grow and expand your livestock business. This includes upgrading or updating equipment and facilities, expanding your livestock, diversifying your business or investing in more land. Plan financial investments in advance by deciding where the money can best be spent to further expand profits.
A ranch is a very complex and interconnected system where one management decision affects many other parts of the ranch, sometimes with unintended consequences.
- Burt Rutherford, Senior Editor, BEEF Magazine
9. Add a contingency plan
Contingency planning, like financial planning, is good business practice! A contingency plan should consider who will take over if you are unable to manage operations, financial resources for contingencies and strategies for dealing with difficulties.
Develop a plan for operations management if an unforeseen event occurs. You may have a partner, children, or other family members who can help keep the operation going if necessary. If not, make agreements with neighbors or other producers to support each other in these types of situations.
Many challenges cause financial stress. Plan ahead to avoid these scenarios and keep a cash reserve for emergency expenses. Contingency plans should also take into account market fluctuations and include plans to address animal diseases or injuries.
10. Become a lifelong learner
Continuous learning is the key to continued success in beef cattle breeding. The livestock industry is constantly changing, improving and looking for ways to become more cost-effective while still delivering high-quality products. Your ability to stay informed and continue to learn and implement best practices will ensure a thriving business.
Mentors and a network of livestock producers can keep you informed and help resolve any issues. Trade magazines, websites, newsletters, podcasts and YouTube videos are another source of information. Sign up to learn about different cattle breeds, farming techniques, operational and management practices, marketing ideas and more. When the information comes directly to you, it is easier to maintain the habit of continuous learning.
Agricultural university programs are an excellent source of information and provide unbiased and research-based solutions. Many offer specialists, programs and publications to improve your business.
THE COMPANY THAT breeds beef cattle for a profit
Every company can improve and increase its profitability. Apply these tips and strategies to your activities in the appropriate areas. As a business owner, you need to be confident that you can select the best possible breed for your local market to meet supply and demand.
These insights can be seen in action with Mike and Erin Galloway of Our Wyoming Life in Gillette, Wyoming on theirYoutube Channel. Mike discusses the costs of farming in 2020 and raising beef cattle for profit. He recommends action steps that livestock farmers can take to improve their incomes.
Maintain financial viability through marketing and management best practices. Build your business by consistently delivering high-quality products. Ranching for profit is an achievable goal for any business.
Having solid financial plans, solutions to potential challenges, different types of queues and growth strategies ensure sustainable success. Ultimately, maximizing your profits by increasing beef cattle isn't about one big decision. It is a series of strategies and small decisions that create successful operations.
Visitour blogfor additional information and resources for livestock farming.
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Dana Carban
As a small-town girl in rural Manitoba, Dana Charban grew up farming and raised her...
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