 Nevada
County Podcast
October 28, 2008
Profits Still Possible in Today's Cattle Market (2:12 minutes)
Audio/Video Script:
Melissa Beck
County Extension Agent - Staff Chair
[Title Slide] Profits Still Possible In Today’s Cattle Market, Melissa Beck,
University of Arkansas Division of Agriculture Cooperative Extension Service.
[Video of Cow/Calf Herds] Arkansas Cattle Producers have the potential to be
profitable despite increased input costs and today’s unpredictable market
according to Harlan Hughes, Professor Emeritus of North Dakota State University.
[Picture of sign from U of A Livestock and Forestry Branch Station,
Batesville AR] Hello, I’m Melissa Beck Nevada County Extension Agent. At a
recent producer meeting at the University of Arkansas Livestock and Forestry
Branch Station near Batesville, renowned agriculture economist Dr. Hughes spoke
to producers about ways to maintain profitability in today’s unpredictable
markets.
[Video of calves being processed] Keeping accurate and complete herd
performance records is the first step in maintaining profitability in the
cow/calf operation. With declining profit margins producers should maintain herd
performance records and use those to guide production decisions.
[Picture of cow/calf enterprise budget] In today's market "Low-Cost"
producers are profitable. How do you know if you are a high-cost or low-cost
producer? The key is in Enterprise accounting according to Hughes, who made the
point that unless producers monitor expenses in each enterprise separately they
can't be certain which areas of the operation are profitable and which are not.
Dr. Hughes recommends maintaining separate accounting records for each
enterprise, for instance keeping cow/calf and hay production enterprise budgets.
He also recommends producers calculate costs as per hundred pounds of beef
produced rather than per cow. This break-even selling price should guide your
marketing decisions.
[Picture of semi-truck backed up to loading pens] Under current economic
conditions, Dr. Hughes indicated that Arkansas producers should consider
retaining ownership of calves weaned this fall to 850 pounds as his calculations
indicate this is likely the most profitable marketing alternative.
[Video of cow/calf herd ] The current market trends, the cost of feeding
grain-based grower rations and the future's markets, make pasture production
systems essential. The availability of cool-season perennial grasses and the
ability to easily grow high quality cool-season annual grasses and legumes
should make Arkansas producers the envy of producers in neighboring states.
[Slide showing contact information] For more information about herd
performance records, enterprise budgets or forage management contact your local
county Extension Agent.
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