Your SlideShare is downloading. ×
0

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Workshop Internacional – Como Confinar o ano todo Palestra com Dr. Dan Loy: Avaliação econômica dos diferentes tipos de construções sobre o resultado de confinamentos de bovinos de corte

353

Published on

Published in: Education, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
353
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. III. Economic evaluation of different types of buildings on the outcome of finishing beef cattle Dan Loy Professor of Animal Science Director, Iowa Beef Center Iowa State University
  • 2. Five Systems Analyzed • Earthen lot with no shelter…windbreak only • Earthen lot with a shed for shelter • Concrete lot with a shed • Total confinement with solid concrete floor • Total confinement with slatted floor
  • 3. Costs/assumptions • 1 USD $ = 2.32 R$ • 1 R$ = $.43 • Interest rates 10%
  • 4. Assumptions Common to All • Fencing costs are the same for all. Cost = R$76/m. • Site preparation = R$ 4.64 per head • Concrete cost costs = R$ 606/m3 • Concrete depth = 10.2 cm • Earth volumes for settling basin and detention basin construction = volume of liquid to handle
  • 5. Assumptions Common to All • 150 head per pen • .3 m of bunk space per head • 1 gate per pe • 1 waterer per pen • 100% of rainfall runs off • Environmental control facilities designed per DNR regs (for once a year pumping)
  • 6. Earthen Lot with Shed Windbreak fence Open lot (150) head Fenceline bunk Drive alley Open lot (150) head Settling basin Windbreak fence Detention basin 6
  • 7. Earthen Lot Assumptions • 3.66 m concrete apron along length of bunk • 13.9 sq m concrete pad around waterer • 2.72 MT/yr-hd solid manure each year • Lot with windbreak – 23.2 sq m per head lot space – 2.79 sq m per head mound space – Windbreak = R$ 34.80/ head
  • 8. Earthen Lot Assumptions • Lot with shed – 20.9 sq m/head outside, 2.3 inside – No concrete inside building – Building cost = R$388/sq m
  • 9. Concrete Lot with Shed S ettlin g a p ro n Pa ve d lo t Deten tio n b a s in 9
  • 10. Concrete Lot Assumptions • 1.85 sq m/head inside, 2.79 outside • No feed alley • No roof water gets on lot • 4.1 MT/yr/hd solid manure • Weekly scraping or oftener
  • 11. Complete Confinement Building with Solid Floor 11
  • 12. Complete Confinement Building • Total roof means no liquid manure to haul • Total solid concrete floor • 5.5 MT/yr/hd solid manure • Solid hauling cost = R$8.88/MT
  • 13. Complete Confinement Building with Slatted Floor 13
  • 14. Complete Confinement Building with Slatted Floor • No solid manure to haul • Liquid manure = 24.6 l/day/hd • Hauling cost = R$0.06/l
  • 15. Change In Feed Intake Open Lot vs. Confinement 14 12 10 8 6 4 2 0 ISU 70-75 ISU 78-83 MN 70-76 MN 77-78 NB 74-75 MO 74-82 SOI 88-97
  • 16. Change In Feed/Gain Confinement vs. Open Lot 8 7 6 5 4 3 2 1 0 -1 -2 -3 ISU 70-75 ISU 78-83 MN 70-76 MN 77-78 NB 74-75 MO 74-82 SOI 88-97
  • 17. Change In Feed/Gain No Shelter vs Shelter 10 9 8 7 6 5 4 3 2 1 0 ISU 70-75 ISU 78-83 MN 70-76 MN 77-78 H&G SOI 88-97
  • 18. ADG Assumptions 1.50 1.00 0.50 0.00 Yearlings Calves Open 1.41 1.27 OL/S, PC 1.49 1.34 Conf 1.37 1.24
  • 19. F/G Assumptions 7.4 7.2 7 6.8 6.6 6.4 6.2 Yearlings Calves Open 7.4 7 OL/S, PC 7 6.7 Conf 7.2 6.85
  • 20. Rations • Flexible feed storage – Modified distillers grains – Ground hay – Dry corn – Supplement
  • 21. Economic Analysis • Initial investment • Annualized costs • Cost per head • Yardage • Environmental structures costs
  • 22. Other costs • Feed costs ($R per MT) • Bedding cost • Labor, land, etc.
  • 23. Other non-feed costs • Bedding-- $R 127/MT • Land Rent-- $R 1030/hectare • Wage rate $R32/hr Other Non-feed Costs, per Head ($R/head) YEARLINGS Veterinary and health Machinery and equipment 16.25 CALVES 22.30 25.50 Marketing and miscellaneous Total 37.10 71.85 32.50 80.30 18.50
  • 24. Feed Costs • Corn--$R 387/MT • Hay--$R 199/MT • Modified Distillers Grains (50% DM)-- $R 217/MT • Supplement-- $R 1020/MT
  • 25. Initial Investment Per Head by System and Size R$ $2,000 $1,800 $1,600 750 head 1,500 head 5,000 head $1,400 $1,200 $1,000 $800 $600 $400 $200 $Earthen Lot w/Windbreak Earthen Lot w/ Shed Concrete Lot w/ Shed Confinement Solid Floor Confinement Slatted Floor
  • 26. Ownership and Operating Costs (nonfeed) per Head (Two Turns of Yearling Steers), R$ $350 $300 750 head 1,500 head 5,000 head $250 $200 $150 $100 $50 $Earthen Lot w/Windbreak Earthen Lot w/ Shed Concrete Lot w/ Shed Confinement Solid Floor Confinement Slatted Floor
  • 27. Cost of gain with 2 turns of yearlings (days on feed = 152 to 164) R$ $2.04 750 head $2.02 1,500 head $2.00 5,000 head $1.98 $1.96 $1.94 $1.92 $1.90 $1.88 $1.86 $1.84 Earthen Lot w/Windbreak Earthen Lot w/ Shed Concrete Lot w/ Shed Confinement Solid Floor Confinement Slatted Floor
  • 28. Cost of gain with one turn of calves (days on feed = 194 to 207), R$ $1.92 750 head $1.90 1,500 head $1.88 5,000 head $1.86 $1.84 $1.82 $1.80 $1.78 $1.76 $1.74 $1.72 Earthen Lot w/Windbreak Earthen Lot w/ Shed Concrete Lot w/ Shed Confinement Solid Floor Confinement Slatted Floor
  • 29. Breakeven Yardage Charge at 85% Capacity, R$ $2.50 750 head $2.00 1,500 head 5,000 head $1.50 $1.00 $0.50 $Earthen Lot w/Windbreak Earthen Lot w/ Shed Concrete Lot w/ Shed Confinement Solid Floor Confinement Slatted Floor
  • 30. Breakeven Yardage Charge minus Manure Value (85% Capacity), R$ $1.40 750 head $1.20 1,500 head 5,000 head $1.00 $0.80 $0.60 $0.40 $0.20 $Earthen Lot w/Windbreak Earthen Lot w/ Shed Concrete Lot w/ Shed Confinement Solid Floor Confinement Slatted Floor
  • 31. Initial Investment • Earthen lot with windbreak has lowest initial investment • Adding a shed doubles the costs • Concrete with shed comparable to earthen lot with shed when environmental structures included • Confinement highest investment
  • 32. Overhead and Operation • Earthen lot advantage for small lot • Earthen lots without shed or concrete lot were lowest cost for large lot • Confinement had higher costs • Yardage ranges from R$1.23-2.06 /head/day
  • 33. Cost of Gain • Incorporates animal performance • Yearlings and calves similar • Confinement has higher cost of gain
  • 34. Environmental Structures • Not needed on confinement • Lowest for concrete lot with shed – 1/5 to 1/10 the cost of earthen lot structures • Relative cost of structures – $50 was largest initial investment – 15% of pens lose more than $50/head – Maximum annual cost less than $5/head
  • 35. Size of Feedlot • Subject to assumptions – Many costs were linear • 750 head lot – Already capturing most economies of scale – Environmental savings may be short lived • 5000 head lot – Economies of scale – Environmental and overhead
  • 36. ISU Beef Feedlot Systems Manual (PM-1867)
  • 37. Summary Construction and Operational Factors • Confinement systems have the highest initial investment • Economies of size exist for runoff containment • Operational costs are highest with the deep bedded housing mostly due to bedding costs • The cost of shelter is justified in all systems • To capture the value of initial investments in confinement producers must also capture and utilize increased manure nutrient values.
  • 38. Key to Competitiveness with Confinement
  • 39. Questions? Dan Loy Extension Beef Specialist Director, Iowa Beef Center 515-294-BEEF dloy@iastate.edu

×