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March, 2007
The following budget is an estimate of the costs of production associated with pasturing 500 feeder cattle. The purpose of this budget is to assist Manitoba livestock producers in calculating their own costs and take into consideration the factors that should be included when budgeting to determine break-even prices.
Manitoba has an abundance of suitable land for pasturing cattle (ie. PFRA Community pastures, Agricultural Crown Lands, private pastures, etc.). Because of this abundance the cost of raising cattle on pasture in Manitoba is very competitive when compared to other provinces. In this budget it is assumed that feeders are purchased in the spring, put in a feedlot for 60 days prior to going out on pasture for an additional 115 days.
The assumptions on which costs are calculated are clearly defined in the supporting pages. When interpreting these costs for an individual situation, adjustments may be required. Each assumption must be examined and adjustments made, where necessary, to apply to the farmer’s own situation.
Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.
Beef Grasser Cattle Production Costs
ASSUMPTIONS:
1. This Budget outlines the cost of production for raising cattle on grass before finishing.
2. All feed is purchased.
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HERD PROFILE
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Number of Feeders Purchased
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500head
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Feeder Cattle Mortality Rate (%)
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1.50%
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Feeder Purchased Shrunk Weight (lbs)
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550lbs
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Feeder Cattle Price ($/cwt)
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125 $/cwt
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Finish Weight (lbs)
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900lbs
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Percent Shrink (%) – out
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6.0%%
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Shrunk Weight (lbs)
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846lbs
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Average Daily Gain Gross (lbs/day)
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2.00lbs/day
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Average Daily Gain Net (lbs/day)
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1.69lbs/day
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Total Days Fed
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175days
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Days on Feed in Feedlot
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60days
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Days on Pasture
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115days
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(1) FOOTNOTE: 1 kilogram (kg) = 2.2046 pounds (lbs)
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FEED COSTS
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Cost
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Amount
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Ground Barley ($/bu)
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$3.30
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3 lbs/day
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Hay ($/ton)
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$55.00
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14 lbs/day
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Salt, Vit.etc.($/lb)
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$0.35
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7 lbs/year
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Feeder Purchase Costs
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Buying Commission per CWT
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$1.00
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Trucking-in per CWT (short distance)
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$2.00
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Yardage:
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Cost/head/day
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$0.35
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Initial Chute fee $/head
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$3.00
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Veterinary Medicine & Supplies:
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Cattle Medication:
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Tagging – 5% retagging cost
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$0.15
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Vitamin A-D
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$0.65
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External & Internal Parasites
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$1.76
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Blackleg 7 way
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$2.50
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Growth Implants
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$1.71
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Antibiotics
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$4.00
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Vaccine 3 way
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$0.00
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Trucking Cost:
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Average Weight/Head
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900
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Trucking Cost ($/cwt)
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$2.00
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Marketing Cost:
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Commission on Sales ($/head)
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$17.00
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Insurance fee / head
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$0.75
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MCPA Checkoff $/head
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$2.00
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Insurance:
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Cost per $100 Capital Invested in:
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a). Livestock
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$0.60
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b). Building & Equipment
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$0.00
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Additional Coverage for Liability
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$0.00
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Land Value per Acre
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$0.00
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Property Taxes per Acre
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$0.00
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Carrying Capacity per Head (acres/head)
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2.5
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Pasture rental – cost per day
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$0.50
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Pasture checking costs (ie fuel)
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$300
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LABOR COSTS
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Feedlot labour – hours/day
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0
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Pasture Labour – hours/day
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0.4
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Labor Rate/Hour
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$11.00
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Feedlot
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Pasture
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0.0hrs/day
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0.40hrs/day
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60days
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115days
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0total hours
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46 total hours
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0.00hrs/feeder
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0.09hrs/feeder
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Beef Grassing Cost Summary – March, 2007
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A. Operating Costs
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Cost/head
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Cost/CWT
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Your Cost
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1. Feed Costs:
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1.01 Ground Barley
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$12.38
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$1.46
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___________
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1.02 Hay
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$23.10
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$2.73
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___________
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1.03 Salt, Vitamins & Minerals
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$2.45
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$0.29
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___________
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Total Feed Costs
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$37.93
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$4.48
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___________
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2. Other Operating Costs:
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2.01 Feeder Cost
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$704.00
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$83.22
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___________
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2.02 Yardage
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$24.00
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$2.84
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___________
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2.03 Rented Pasture
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$57.50
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$6.80
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___________
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2.04 Pasture Checking
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$0.60
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$0.07
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___________
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2.05 Veterinary Medicine & Supplies
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$10.77
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$1.27
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___________
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2.06 Insurance
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$4.13
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$0.49
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___________
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2.07 Selling Cost
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$37.75
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$4.46
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___________
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2.08 Death Loss
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$11.57
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$1.37
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___________
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Subtotal Operating Costs
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$888.25
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$104.99
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___________
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2.09 Operating Interest
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$22.90
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$2.71
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___________
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Total Operating Costs
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$911.15
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$107.70
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___________
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B. Fixed Costs
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3.01 Own Pasture Costs
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$0.00
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$0.00
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___________
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Total Operating & Fixed Costs
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$911.15
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$107.70
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___________
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C. Labour
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$1.01
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$0.12
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___________
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Total Costs Of Production
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$912.17
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$107.82
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___________
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Cost per lb of gain sold
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$/lb
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Operating costs
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$911.15
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operating
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___________
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$704.00
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feeder cost
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___________
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÷
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296
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weight gain
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___________
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=
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$0.70
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/lb gain sold
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___________
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Total Costs
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$912.17
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total costs
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___________
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$704.00
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feeder cost
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___________
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÷
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296
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weight gain
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___________
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=
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$0.70
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/lb gain sold
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___________
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Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.