The Rural Voice, 1986-10, Page 53ADVICE
of the finished steer must equal or
be greater than the purchase price
of that steer and the cost for
finishing it. Let's presume that this
steer goes to market at 1,100
pounds at a price of 84 cents. This
gives a gross return of $924. If we
bought this steer at 500 pounds
and the cost of gain was 70 cents
per pound, then the total is $420.
In order to break even, one cannot
pay over $504 for this 500 -pound
replacement steer. This means that
the most you can pay for this
replacement steer in order to break
even is SI per pound for a
500 -pound animal.
Before anyone says that SI per
pound is what I've said you can
pay for a replacement steer, keep
in mind that many of the assump-
tions made here have been op-
timistic. Your costs of production
are unique to your situation.
Perhaps a few suggestions tor
this fall's feeder sales would be in
order.
1. Do calculate your cost of pro-
duction.
2. Don't feel you must outbid
the person you think is bidding too
high.
3. Do have a ceiling price in
mind when purchasing replace-
ments.
4. Don't lose sight of the fact
that you are feeding cattle to make
a profit.
5. Do study the market trends of
previous years in order to predict
next year's price.
6. Don't think low feed prices
mean that you can feed cattle for
nothing.
7. Do keep your feeding costs as
low as possible, regardless of the
source of that feed.
8. Don't think that cattle prices
w ill follow the rise in pork prices
automatically.
The task of a feedlot operator
obtaining replacements at a
reasonable price this fall is not an
enviable one. The market for these
replacements seems to be very
buoyant. However, if you as a
feedlot operator can calculate your
costs of production and your ex-
pected return, you will be better
prepared for the feeder sales.
Calculation sheets and feed -
estimate tables are available from
O\1:\1-. Stratford.-_
Bill Olan
Red Meat Advisor
WOOD SPLITTERS
• 5 H.P. Honda Motor
• 11 Gal. 2 -Stage
Pump
• 4" x 24" Cylinder
• 2 Way Valve
• Hardened Cutting
Edge
• 8" Heavy
I -Beam
• Hardened
Cutting
Edge
• 3 Point
Hitch
• 2 Way Valve
• 4"x 16"
Cylinder
George Smyth Welding
And Machine Shop
R.R. #2, AUBURN, ONTARIO NOM 1E0
519-529-7212
WHY WAIT? DO IT NOW! SPECIAL FALL
PURCHASE PROGRAM FOR NEW CENTURY
BULK MILK COOLERS
Flat tank ends permit
setting tank against
wall to save space.
Tank may be bulk -
headed through
milkhouse wall.
Polished stainless
steel is easy to keep
clean, neat.
FIVE YEAR WARRANTY
on stainless steel tank
and refrigeration plate
(evaporator)
Thermostat position
ed for faster response
cooing
ALFA -LAVAL AGRI
WORLD'S LEADER - THANKS TO YOU
Polyurethane
insulation.
• Low 7.9% financing
• No payments until Jan. 21, 1987
Offer expires Oct. 20. 1986
LENCO
DAIRY SUPPLY LTD.
RR1 Atwood — Phone 356-2282
A complete range of dairy equipment
Toll Free
1-800-285-2384
OCTOBER 1986 51