Friday, April 18, 2014

Barzona Barzona Cattle:

Barzona B - Low birth weight, problem free calving
Barzona B - Strong instinctive maternal traits
Barzona B - Low input, graze in drought conditions
Barzona B - Adaptable to any environment, from sea to shining sea
Barzona B - And that's no bull!

Barzona Breeders: Grass Fed Beef, Commercial Beef, Bull Genetics/Seedstock, Heifer Genetics/Seedstock

Spring 2012 Newsletter

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Letter From The President

Greetings from the President’s Corner! Do you remember Fantasy Island with Mr. Roarke (Ricardo Montalban) and his sidekick, Tattoo? The staff awaited the arrival of their new guests to the island; upon its sighting, Tattoo would alert staff, “De plane! De plane!” Then all hands were on deck and everyone would come running to fulfill the fantasies of those deboarding from the plane. The guests paid dearly for their trip to the Island where their fantasy would come true. Through the medium of their fantasy life lessons were learned.

What is our fantasy? Is it a fantasy to have low inputs? Is it a fantasy to have high profits?

Does the BBAA have a vision? Does the BBAA have a mission?What have we learned from the 44 years of our existence? And where do we go from here?

I would like everyone to start thinking about our slogan/motto for Barzona beef. How many of you know what it is? Short, cute and something that can be recognized! In short, what we (our Barzona beef)
stand for. Let’s promote! Let’s become recognized! Let’s talk about advertising!We need a photo of the best of our beef to get recognition, and our slogan/text to go with it that is catchy, so that when people
see it, they will think, Barzona Beef, “The hardy breed!” That’s what beef should be all about!

Bring your favorite cattle magazine that you want us to advertise in. As the Annual BBAA meeting looms ahead, I am getting excited to meet some of you who live out West. I can’t wait to meet you there!

If you have any questions or any items to be discussed, please let me know.

~ Susan Cooper

Lake Oriole Ranch
8485 Croom Rital Rd. • Brooksville, FL 34602
(352) 799-0086
LakeOrioleRanch.com
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Cow Cost Recapture  by Chip Hines

I'm sure by now you have wondered about my slantwise appraisals of the cattle industry.  My views may be "un-normal" (yeah, I know it isn't a recognized word, but it fits me), but as I have said before, my purpose in writing books is to jar people out of the complacent world they inhabit and take control of their management instead of following the path laid out by those selling inputs.

The thoughts I will lay out below are not normally used in year-end accounting, but designed to make you aware of something that has a bearing on how you approach changes in management.  They may seem strange at first because they are not in any book of things to do, and that is my point.  Look at something from a new perspective.

Everyone figures their cow cost at the end of the year, or darn well should.  This number is usually higher than anticipated, causing a head scratching episode wondering how it got so big.  Now I will explain how it is worse than you think.

When you calculate the cost per cow, have you ever given any consideration to how it is paid back?  When going through the year-end figures and deriving a per cow cost, that is as far as most people go in  evaluationg this figure.  Another step can be added that may be vitally important, but will open your eyes to the importance of keeping all costs as low as possible.

This is one of those quick and dirty calculations that are supposed to be 100% accurate, but to get your brain working in a different mode.  To see something in a different light.  To understand other methods of looking at the same problem.

In this example I will begin with 100 bred as 100 is an easy number to work with and I'm also lazy.  First, I will lay out death loss and replacement numbers, then fictitious cow costs and calves sold, ending with cow cost per calf sold.

100 cows - 5 death loss - 15 replacements = 80

80 saleable calves, not 100

Have you ever thought of this?  When adding up possible profits in your head while riding through your cows, this might have been left out.  This explains the next step.  Annual cow cost per saleable calf.  Begin with a $400 yearly cost.

$400 x 100 = $40,000 / 80 = $500

breakeven per calf to pay cow cost

$350 x 100 = $35,000 / 80 = $437.50

cutting $50 lowered breakeven by $62.50!

$300 x 100 = $30,000 / 80 = $375

cutting $100 lowered breakeven by $125!

This throws a different light on breakeven price for calves at the sale barn.

Study these figures, It illustrates how much of a load is put on the number of calves sold by your cow cost, and how important it is to reduce costs.  Cutting $100 per head cow cost is easily attained in nearly all operations (much more in some) by downsizing cows, changing calving dates and eliminating hay feeding.

The exercise also works if you run the calves over as yearlings and/or send them to the feedlot.  Each segment may have fewer numbers to sell because of death loss while still paying the cost of 100 cows.  Savings on the other hand will pass through to the end.  It only takes management.  No inputs required.