Farm enterprise Budget Series: June 2010
Enterprise: Growing out steers for feedlot market 240kg-420kg in 12 months
Enterprise Unit: 100 steers
Pasture: Improved pasture
Assumptions
Growing out steers for feedlot market 240kg-420kg in 12 months. Enterprise unit is 100 steers purchased at 9 months of age at 240kg liveweight, held for 12 months and turned off at 400 kg liveweight direct to feedlot.
Mortality rate of adult stock: 2%
The average feed requirement for this enterprise is rated at 7.72 dse’s*. This is an average figure and will vary during the year.
Note that as with breeding enterprises there has been no interest charged on livestock. If an interest charge c@ 10.0% pa for 365 days is charged a further $5,280 should be allowed in the budget.
Marketing Information:
Suited as feeder steers for the premium Japanese 200 days + on feed market. Most common turnoff weights 380kg - 460kg liveweight. Care is needed in purchasing the right type of cattle which are likely to be at the higher value end of the market. This is a specialised operation. Freight costs will vary depending on proximity to major feedlots.
Production Information:
Breeds preferred Murray Grey, Angus, Shorthorn or Wagyu/British crosses when available. Liveweight scales on farm are essential.Growing out enterprises can be risky because of the price variation in both purchases and sales. Producers should consult the table on the previous page that shows gross margin changes due to variation in purchase and sale prices. Producers should determine the maximum purchase price they are prepared to pay before the sale. Liveweight and description buying are recommended methods.
