Is beef cattle farming profitable?
Is Beef Cattle Farming Profitable? If beef cattle farming was not profitable, it would not be the big industry it is today. Cattle farming benefits us in many ways beyond beef. There is absolutely no part in a cow or bull that goes to waste. Even in a beef cattle farm, cows can be milked, their meat is sold, their hide is used for leather and their bones are used for making gelatin. So if you have spent some amount on their food, shelter and water, well, you are getting in back in multiple folds.
But not all the returns you get from beef cattle farming are in the form of money. Making money from beef cattle can be pretty challenging, and if you are not being wise on when to slaughter and when to sell, your cows could easily be eating through your pockets.
Maintaining cattle is expensive.
Cattle are high-maintenance creatures depending on their breed. They require a lot of quality feed, especially if you are marketing 100% grass-fed beef. You also have to put down a lot of capital to buy your cows, their vast grazing lands, sheds or barns for their shelter and, of course, plenty of fresh water. With all the capital laid down, you also cannot expect to see profit immediately. Cattle don’t grow overnight, so it would be quite some time before you begin to see any profit. So, patience is key in cattle farming.
On average, it would cost you more than $520 to raise a calf from its infancy to a mature cow for slaughter. The cost of feed for a beef cow per day is $1.83. This would be $220 per beef cow over the winter feeding period when they are no longer able to graze. The rest of the days, they are less maintenance as they would be grazing in the fields.
Your expenses also depend a lot on your resources. If you have a freshwater supply in your farm in the form of a well or river, you wouldn’t be incurring so much expense on their water too. If not, you may have to add their water intake to your cost as well. A cow can drink up to 50 gallons of water per day or more during hot weather.
Is Beef Cattle Farming Profitable? Profit depends on many factors.
Profit from beef cattle is dependent on many factors like the quality and type of your cows and the number of cows your pasture is able to support. Some beef cattle are excellent converters of fodder to quality beef. Some are not so efficient and require high maintenance.
Selling high-quality marbled beef can be very profitable. Marbled beef is very popular, and if you are able to certify your beef standards, especially if they are 100% grass-fed- too, you can make a big profit because these beef sell at a price premium. Types of cattle that produce premium beef are Hereford cattle, Angus beef cattle and Belgium blue beef.
Facts to consider in the beef cattle business
Buying average or inferior-quality cows will mean that you will sell your beef at a lower price. So going for good quality cows is always a good investment. Joining a cattle marketing alliance will help you to market your beef better. It’s best not to go for high-maintenance cows. High-maintenance cows are usually large in size, so opt for those moderate in size. You should also develop a short and defined breeding season to improve efficiency. Control your feed expenses to prevent wastage.
Is Beef Cattle Farming Profitable? Summary
Raising beef cattle can be quite profitable, depending on how you manage them. If you are wise about your costs and choose high-quality cattle to raise, their carcass is bound to bring in a lot of profit. But if you don’t slaughter them at the correct time and don’t manage your feed well, you may be spending more money on their maintenance than you can get on beef profit. While beef cattle farming can cost you a good amount of capital, it would be a while before you start seeing an adequate amount of profit. If you manage your farm well, there are many profitable parts of cattle, from beef to its hide and their milk.
