Leveraging Gross Margin With Cost-Effective Gain

As much as calf and feeder prices have changed the last several years, Stan Bevers, extension agricultural economist with Texas AgriLife, explains the gross margin remains fairly static. How that margin is utilized to get more gain from cattle remains the choice each producer makes.

Whether it's providing an ionophore, implanting, feeding supplement, or the overall health program, Bevers says management continues to gain value in stocker production. At the same time, Bevers emphasizes getting calves bought right continues to be key to the equation of potential profit. Pay too much on the front end, relative to potential, and he says you're at a an economic disadvantage on anything else you try to accomplish with the cattle.

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