Guidelines for Estimating
Beef Feedlot Finishing Costs
2015
in Manitoba
..............................................
Guidelines For Estimating
Beef Feedlot Finishing Costs
For Weight Range of 650 - 1400 lbs.
Based on feeding 500 Steers
Date: September, 2015
(**revised market prices November 6th**)
This guide is designed to provide you with planning information and a format for calculating
costs of production of a beef cattle feedlot finishing enterprise in Manitoba. General Manitoba
Agriculture, Food and Rural Development (MAFRD) recommendations are assumed in using
feed and veterinary inputs. These figures provide an economic evaluation of the livestock and
estimated prices required to cover all costs. Costs include labour, investment and
depreciation, but do not include management costs, nor do they necessarily represent the
average cost of production in Manitoba.
Cattle feeding is a high risk business requiring large amounts of short term capital to buy
feeder cattle and feed. With cyclical price variations for both livestock and feed, successful
management involves careful consideration of costs, projection of markets and sound
judgement.
These budgets may be adjusted by putting in your own figures. As a producer you are
encouraged to calculate your own costs of production. Good management is assumed in that
a balanced ration is being fed, livestock are on a herd health program and handling facilities
are included.
This tool is available as an Excel worksheet at: www.manitoba.ca/agriculture
or at your local MAFRD GO Office. The Farm Machinery Custom and Rental Rate Guide
is also available to help determine machinery costs.
Note: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry.
Interpretation and use of this information is the responsibility of the user. If you need help with a budget, contact your
local MAFRD GO Office.
Guidelines: Feedlot Finishing Cattle Production Costs
2
Feedlot Finishing Cost Summary September, 2015
Based on feeding 500 steers for weight range 650 to 1400 lbs.
A. Operating Costs
1. Feed Costs
1.01 Rolled Barley
1.02 Barley Silage
1.03 Grass Hay
1.04 Supplement
Total Feed Costs
2. Other Operating Costs
2.01 Feeder Cost
2.02 Straw
2.03 Veterinary Medicine & Supplies
2.04 Annual Fuel & Repair Costs
2.05 Utilities
2.06 Marketing & Transportation
2.07 Insurance
2.08 Manure Removal
2.09 Barn & Office Supplies
2.10 Death Loss
Subtotal Operating Costs
2.11 Operating Interest
Total Operating Costs
B. Fixed Costs
3. Depreciation
3.01 Buildings
3.02 Machinery & Equipment
4. Investment
4.01 Buildings
4.02 Machinery & Equipment
Total Fixed Costs
Total Operating and Fixed Costs
C. Labour
TOTAL COST OF PRODUCTION
Cost/Head
Total Cost
$378.38
$56.31
$3.38
$52.38
$490.45
$189,190
$28,155
$1,690
$26,190
$245,225
$1,708.55
$15.00
$18.46
$9.45
$6.80
$101.72
$1.66
$11.20
$1.80
$39.72
$2,404.81
$70.90
$2,475.71
$854,275
$7,500
$9,230
$4,725
$3,400
$50,860
$830
$5,600
$900
$19,860
$1,202,405
$35,450
$1,237,855
$7.46
$17.92
$3,730
$8,960
$2.28
$3.36
$31.02
$2,506.73
$1,140
$1,680
$15,510
$1,253,365
$40.00
$2,546.73
$20,000
$1,273,365
Your Cost
Profitability and Breakeven Analysis
Estimated Farmgate
Gross Revenue @ $165/cwt market price
Breakeven Analysis
Operating Costs
Operating Costs & Labour
Operating & Fixed Costs
Total Costs
Per Head
$2,194.50
Breakeven Purchase
Price ($/cwt) @
$165/cwt market price
$216.74
$210.58
$211.96
$205.81
Cost per lb of
gain sold ($/cwt)
Feed Costs
Operating Costs
Operating Costs & Labour
Operating & Fixed Costs
Total Costs
$72.13
$115.55
$121.43
$120.11
$125.99
Total
$1,097,250
Breakeven Selling
Price ($/cwt) @
$260/cwt feeder price
$186.14
$189.15
$188.48
$191.48
Marginal Returns per head
@ $165 /cwt market price
($281.21)
($321.21)
($312.23)
($352.23)
Note: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry.
Interpretation and utilization of this information is the responsibility of the user. No liability for decisions based on this
publication is assumed.
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
3
Feedlot Finishing Production Cost Worksheet
Assumptions
1. Average daily gain (ADG) was assumed to be 3.25 lbs/day.
2. It was assumed that the feeder steer weighed in at 650 lbs., and finished at 1400 lbs
( 1330 lbs after a 5% shrink.)
3. Days on feed was 231. Hay was fed for 15 days.
4. Investment in feedlot facilities and equipment was assumed to handle 500 head.
A. Operating Costs
Your Cost
1. Feed Costs
1.01 Rolled Barley
231.00
18.50
48.00
$4.25
$378.38
days on grain
lbs/feeder/day
lbs/bushel
/bushel
/feeder
x
÷
x
=
231.00
12.50
2,000.00
$39.00
$56.31
days on silage
lbs/feeder/day
lbs/ton
/ton
/feeder
x
÷
x
=
15.00
5.00
2,000.00
$90.00
$3.38
days on hay
lbs/feeder/day
lbs/ton
/ton
/feeder
x
÷
x
=
1.02 Barley Silage
1.03 Grass Hay
1.04 Supplement (Salt, Vitamins, Minerals, Ionophore)
231.00
days on supplement
x
1.00
lbs/feeder/day
÷
2,205.00
lbs/tonne
x
$500.00
/tonne
=
$52.38
/feeder
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
4
2. Other Operating Costs
2.01 Feeder Cattle Cost
Buying Commission & insurance
$6.50
$1.00
Trucking-in
$1.70
x
650.00
÷
100.00
=
$11.05
Total
commission/feeder
insurance/feeder
/cwt
lbs/feeder
lbs/cwt
/feeder
x
÷
=
650.00
$260.00
100.00
$1,690.00
lbs/feeder
/cwt
lbs/cwt
/feeder
=
$1,708.55
/feeder
x
=
0.50
$30.00
$15.00
2.02 Straw
2.03 Veterinary Medicine & Supplies
Cattle Medication
$4.60
+
$0.56
+
$0.96
+
$1.06
+
$3.42
+
$7.00
=
$17.60
tons/feeder/year
/ton
/feeder
IBR,PI3,BVD,BRSV & Pasteurella
Vitamin A,D & E
External & Internal Parasites
Blackleg & Haemphilus
Implant
Antibiotics
/feeder
Professional Services
x
÷
=
$150.00
2.00
500
$0.60
/hour charge
hours
feeder cattle
/feeder
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
5
Transportation Costs
Total
x
x
÷
=
$0.80
80.00
2.00
500
$0.26
=
$18.46
2.04 Annual Fuel & Repair Costs
$1,725
+
$3,000
÷
500
=
$9.45
/km charge
kilometres
visits
feeder cattle
/feeder
/feeder
repairs
fuel costs
feeder cattle
/feeder
2.05 Utilities
÷
=
$3,400
500
$6.80
2.06 Marketing & Transportation
$3.00
+
$0.00
$0.00
+
=
$3.00
Trucking
Total
x
÷
=
700.00
$5.50
39.00
$98.72
=
$101.72
x
÷
÷
=
$194,890
$0.40
100.00
500
$1.56
x
÷
÷
=
$1,000,000
$0.00
100.00
500
$0.00
utilities
feeder cattle
/feeder
MBP Levy
WLPIP Insurance Premium
commission
/feeder
miles
/loaded mile
head/load
/feeder
/feeder
2.07 Insurance
building & equipment investment
/$100 capital
/$100 capital
feeder cattle
/feeder/year
feeder investment
/$100 capital
/$100
feeder cattle
/feeder/year
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
Total
6
÷
=
$49.00
500
$0.10
=
$1.66
liability premium
feeder cattle
/feeder/year
/feeder
2.08 Manure Removal
$5,600
500
$11.20
÷
=
removal cost
feeder cattle
/feeder
2.09 Barn & Office Supplies
÷
=
$900.00
500
$1.80
total barn expenses
feeder cattle
/feeder
+
÷
x
=
$1,708.55
$2,365.09
$101.72
2.00
2.00
$39.72
feeder cattle cost
maximum value
marketing costs
average value
% mortality rate
/feeder
$1,708.55
$328.27
5.50
231.00
365.00
$70.90
feeder cost
½ of feed & other costs
% operating interest
days on feed
365 days
/feeder
2.10 Death Loss
2.11 Operating Interest
+
x
x
÷
=
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
7
Capital Costs
Buildings,Corrals
& Water System
Windbreak fence
Pens
Handling Facilities
Waterers
Gates
Bunk Feeders
Well & Pressure System
Grain Bin
Landscaping
Total
$7,350
$4,540
$7,500
$6,000
$2,000
$25,000
$8,000
$5,000
$17,500
$82,890
Machinery & Equipment
Tractor & Loader
Miscellaneous
Total
$72,000
$40,000
$112,000
Total Investment
$194,890
B. Fixed Costs
3. Depreciation
Original Cost - Salvage Value
Useful Life
3.01 Buildings
$82,890
$8,289
20.00
500
$7.46
original cost
salvage value
years useful life
feeder cattle
/feeder
3.02 Machinery & Equipment
$112,000
$22,400
÷
10.00
÷
500
=
$17.92
original cost
salvage value
years useful life
feeder cattle
/feeder
÷
÷
=
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
4. Investment
8
Original Cost + Salvage Value x Investment Rate
2
4.01 Buildings
$82,890
$8,289
2.00
2.50
500
$2.28
original cost
salvage value
average
% investment rate
feeder cattle
/feeder
4.02 Machinery & Equipment
$112,000
+
$22,400
÷
2.00
x
2.50
500
÷
=
$3.36
original cost
salvage value
average
% investment rate
feeder cattle
/feeder
+
÷
x
÷
=
C. Labour
x
=
2.00
$20.00
$40.00
hours/feeder/year
/hour
/feeder
Manitoba Agriculture, Food and Rural Development
Guidelines:Feedlot Finishing Cattle Production Costs
9
Breakeven Calculations
Cost per lb of gain sold
Feed Costs
Your Farm
÷
=
$490.45
680.00
$0.72
feed cost
weight gain (lb)
/lb
÷
=
$2,475.71
$1,690.00
680.00
$1.16
operating costs
feeder cost
weight gain (lb)
/lb
Operating & Labour Costs
÷
=
$2,515.71
$1,690.00
680.00
$1.21
operating & labour
feeder cost
weight gain (lb)
/lb
Total Operating & Fixed
÷
=
$2,506.73
$1,690.00
680.00
$1.20
operating & fixed
feeder cost
weight gain (lb)
/lb
Total Costs
÷
=
$2,546.73
$1,690.00
680.00
$1.26
total
feeder cost
weight gain (lb)
/lb
÷
=
$2,475.71
1,330.00
$1.86
operating costs
lbs shrunk weight
/lb
÷
=
$2,515.71
1,330.00
$1.89
operating & labour costs
lbs shrunk weight
/lb
÷
=
$2,506.73
1,330.00
$1.88
operating & fixed costs
lbs shrunk weight
/lb
÷
=
$2,546.73
1,330.00
$1.91
total costs
lbs shrunk weight
/lb
Operating Costs
Breakeven selling price
Operating Costs
Operating & Labour
Operating & Fixed
Total Costs
Manitoba Agriculture, Food and Rural Development
Guidelines:Feedlot Finishing Cattle Production Costs
Breakeven purchase price
Operating Costs
10
x
=
÷
=
1,330.00
$165.00
$2,194.50
$785.71
650.00
$2.17
lbs shrunk weight
$/cwt selling price
income
operating less feeder cost
lbs purchase net weight
/lb
x
=
÷
=
1,330.00
$165.00
$2,194.50
$825.71
650.00
$2.11
lbs shrunk weight
$/cwt selling price
income
op & labour less feeder cost
lbs purchase weight
/lb
x
=
÷
=
1,330.00
$165.00
$2,194.50
$816.73
650.00
$2.12
lbs shrunk weight
$/cwt selling price
income
op & fixed less feeder cost
lbs purchase weight
/lb
x
=
÷
=
1,330.00
$165.00
$2,194.50
$856.73
650.00
$2.06
lbs shrunk weight
$/cwt selling price
income
total less feeder cost
lbs purchase weight
/lb
Operating & Labour
Operating & Fixed
Total Costs
Created and maintained by MAFRD Farm Management
For more information, contact your local MAFRD GO Office or:
September, 2015
Bob Gwyer
Farm Management Specialist
Benjamin Hamm
Farm Management Specialist
Roy Arnott
Farm Management Specialist
Greg Fedak
Farm Management Specialist
Wayne Tomlinson
Extension Veterinarian
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
11
Feedlot Finishing Production Costs - Input
Assumptions
1. This budget outlines the cost of production for a cattle feeder's operation.
2. Buildings and equipment are valued at new cost.
3. All feed is purchased.
Herd Profile
Total
Number of Feeders Purchased
Feeder Cattle Mortality Rate
Feeder Purchased Weight
Feeder Cattle Price
Finish Weight
Finish Selling Price
WLPIP Insurance Premium
Percent Shrink - finished
Percent Shrink - feeder
Average Daily Gain
Days On Feed
500
2.00
650
$260.00
1,400
$165.00
$0.00
5.00
0.00
3.25
231
head
%
lbs
/cwt
lbs
/cwt
/cwt
%
%
lbs/day
days
FOOTNOTE: 1 kilogram (kg) = 2.2046 pounds (lbs)
Feed Costs
Rolled Barley
Barley Silage
Hay
Supplement 32%
Other Feed #2
Salt, Vitamins & Mineral
Feeder Cattle
Requirement
$/unit
$4.25
$39.00
$90.00
$500.00
$0.00
$0.00
/bu
/ton
/ton
/tonne
/lb
18.50
12.50
5.00
1.00
0.00
0.00
Days on
Feed
(lbs/day )
(lbs/day )
(lbs/day )
(lbs/day )
(lbs/day )
(lbs/year)
231
231
15
231
FOOTNOTE: 1 bushel (bu) barley = 48 lbs = 21.8 kg
1 kilogram (kg) = 2.2046 pounds (lbs)
1 tonne (t) = 1,000 kg
Other Operating Costs
Total
Feeder Purchase Costs
Buying Commission
Insurance
Trucking Cost
$1.00
$1.00
$1.70
/cwt
/head
/cwt
Straw
Tons/feeder
Cost
0.50
$30.00
tons
/ton
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
Veterinary Medicine & Supplies
Cattle Medication
Cost/Head(IBR,BVD,PI3,BVD,BRSV, Pasteurella)
Vitamin A-D
External & Internal Parasites
Blackleg & Haemophilus
Growth Implants
Antibiotics
Herd health program
Professional Services
Total Yearly Hours
Charge per Hour
Transportation
Total Kilometres (round trip)
Charge per km
Number of Yearly Visits
12
$4.60
$0.56
$0.96
$1.06
$3.42
$7.00
2.00
$150.00
80.00
$0.80
2
Annual Fuel & Repair Costs
Repairs (Machinery, Equipment & Facilities)
Fuel Costs
$1,725.00
$3,000.00
Utilities
Yearly Telephone & Hydro
$3,400.00
Marketing Costs
Trucking Cost
Distance
Rate
Truck Capacity
Number of head per load
Selling commission
Other Costs
MBP Levy
Manure Removal
Annual Cost for Removal
Insurance
Cost per $100 Capital Invested in:
a) Livestock
b) Building & Equipment
Additional Coverage for Liability
hours
/hour
km
/km
700
$5.50
54,000
39
$0.00
miles
/loaded mile
lbs/load
per load
/head
$3.00
/head
$5,600.00
$0.00
$0.40
$49.00
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
13
Barn & Office Supplies
Total yearly expense relating to barn
$900.00
Operating Interest Rate
Investment Interest Rate
5.50 %
2.50 %
FOOTNOTE: cwt = hundred-weight = 100 lbs
Capital Costs
Buildings,Corrals & Water System
Windbreak fence
Pens
Shelters
Handling Facilities
Waterers
Gates
Bunk Feeders
Well & Pressure System
Grain Bin
Landscaping
Total
Original
Value
$7,350
$4,540
$0
$7,500
$6,000
$2,000
$25,000
$8,000
$5,000
$17,500
$82,890
Machinery & Equipment
Tractors & Loader ($180,000 @ 40%)
Miscellaneous
$72,000
$40,000
Total Investment
Labour Costs
Labour Hours
Labour Rate
Salvage
Value
10 %
10 %
10 %
10 %
10 %
10 %
10 %
10 %
10 %
10 %
20 %
20 %
Useful
Life
20
20
20
20
20
20
20
20
20
20
years
years
years
years
years
years
years
years
years
years
10 years
10 years
$194,890
Total
2.00 hours/head
$20.00 /hour
Manitoba Agriculture, Food and Rural Development
Guidelines: Feedlot Finishing Cattle Production Costs
14
Beef Finishing Feedlot 500 Head
Manitoba Agriculture, Food and Rural Development
For more information
• Contact your local Manitoba Agriculture,
Food and Rural Development (MAFRD)
Growing Opportunities (GO) Office.
• Visit us at manitoba.ca/agriculture.
ESR-016086
January 2014