Value
weber.greg@yahoo.com
According to the United Nations Food and Agriculture Organization:
- The world population will reach 9.1 billion people by 2050.
- It will require a 70% increase in overall food production to feed that many people.
- The world’s arable land is limited.
- To meet future food demand, farmers and ranchers must become more efficient with the land we have.
The East Adirondack Cattle Company feels a responsibility to implement efficient production practices:
- to contribute to a stable food supply for the future
- to wisely use natural resources
- to provide our customers with as much value for their food dollar as possible
Efficient beef production is achieved on various levels and in different forms:
has, as it’s basic purpose, maximization of quality pasture production. Through rotation, pasture plants have sufficient time to rebuild root reserves. Pasture health is improved, increasing the amount of forage – and therefore beef – produced per acre. It not only provides more efficient use of land resources but also means each pound of beef costs less – less overhead cost in total acres, fencing and water systems – per unit of beef.
is key to efficient beef production. The goal is that every cow has a calf every year (Imagine how much less efficient it would be if a cow had a calf every two years instead of every year! – twice the feed and overhead expense per calf!) That means providing cows with adequate nutrition throughout the year so they are fertile for breeding season. Because we use artificial insemination, it means constant vigilance during breeding season so that all cows are bred (and hopefully pregnant!). The long awaited calving season is full of anticipation and anxiety. There typically aren’t problems, but if there are, someone needs to be there to help – day or night, tired or not. Following the steps for excellent reproduction means efficient use of resources and lower cost of production.
is key because we are in the business of turning grass into beef. All cattle have a nutritional maintenance requirement. Whatever they consume over and above this requirement can be dedicated to growth, milk, pregnancy etc. The goal is to dilute the maintenance cost. For example, a steer needs 40 lbs of moderate quality pasture to meet it’s maintenance. It actually eats 60 lbs of that pasture and gains 1 lb. Another steer eating plentiful, top quality pasture, only needs 30 lbs to meet his maintenance. He actually consumes 70 lbs of pasture and gains 2.2 lbs. That means the first steer needed 60 lbs of pasture for 1 lb of gain and the second steer needed approximately 32 lbs of pasture for 1 lb of grain. Rotational grazing provides more, and better, pasture. It let’s us take advantage of the dilution of maintenance principal to maximize the value we get from our grass.
is literally at the root of the beef production system. Our goal is to maximize the production of our pastures which means giving our soil the nutrients it needs.
When was the last time you had an in-depth conversation about Agricultural Economics? We promise not to get “in-depth” but Ag economics do dictate what it costs to feed your family.
Capital investment is substantial for any cattle enterprise and is therefore an important economic consideration. There is a reason we are where we are – land values. There is quite a bit of “agricutural land” that is not well adapted for growing crops – the climate (cold), soil types, and soil fertility means we are less well suited for vegetable, fruit or grain production than many other areas – even some to the north of us! That means land values are not quite as high but we can still grow grass! We do not house cattle indoors. I think they are healthier outside and barns are a big fixed cost, not to mention the variable costs such as manure handling, repairs etc. We need to have functional equipment, but I don’t think you will ever see a new tractor on this ranch! Herd size is also an important factor in ranch economics. Case in point: we have to feed hay in the winter and we need a tractor to do it. I have a tractor older than I am that I payed $4500 for. With that tractor, I can feed hay to 1 cow or 100 cows. The cows have to cover the depreciation on the tractor – because, some day, that old Ford is going to give up the ghost and I’m going to have to buy another one. If I straight line depreciate that tractor over 10 years, it cost $450 per year to own. If I use it to feed 1 cow hay, it cost me $450 per cow per year just for the tractor to feed the hay. If I use that same tractor to feed 100 cows – maybe it only lasts me 8 years, but still, the annual ownership cost of that tractor per cow is then just $5.62. The efficiency of how we use capital can make a big difference to our profitability and therefore our price to you!