Determining the value of Mexican cattle vs. sale barn cattle

Abstract

Feedyard managers are faced with cattle purchasing decisions almost daily. In making these decisions, they must be able to accurately estimate the performance, death loss, and a medicine charges of the cattle being considered. Sale barn cattle and Mexican cattle have very different characteristics with respect to these factors. Sale barn cattle coming directly into the feedyard will normally have a significantly higher medicine bill, cost of gain, and death loss than a Mexican cattle. On the other hand, Mexican cattle will normally have a significantly lower sales price and a lower out-weight. When all of these characteristics are factored in, neither Mexican Cattle or Sale barn cattle have an advantage with respect to purchase price. Producers and feeder buyers and sale barns together can do many things to improve the value of sale barn cattle. Weaning and preconditioning the sale barn cattle before they are sent to the feedyard would drastically reduce the death loss and medicine bill. .Feedyards should be willing to pay a premium for cattle that have been through these types of programs.