May 28, 2007

US study shows cow-calf feed costs high and rising

Cow-calf producers will continue to face rising feed costs this year which will force them to look for other ways to remain profitable, according to a study conducted by American Angus Association (AAA).

Sally Northcutt, AAA's genetic research director, said the association's study indicates that combined pasture, harvested forages and other feed costs have been increasing at the rate of US$5 per cow per year since 2000.

Northcutt stressed the typical US cow-calf operation will spend a sizeable increase of US$35 more per cow in 2007 than it did at the beginning of the decade which underscores the need for producers to optimize their cow size and milk genetics according to feed costs and feed availability within individual operations.

In 2000, annual feed costs were estimated at US$209 per cow and has jumped to US$239 in 2006. Cow-calf operators can expect to add another US$6 in 2007.

Northcutt said producers cannot simply ignore the upward trend of feed costs as lactation requires large amounts of feed energy. She further stated that producers should seek ways to contend with the "inflationary trends" and part of the solution is making certain that cows have the right mature size and milking ability for the environment.