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Determining the Costs of Creep Feeding

Last Updated: February 18, 2008 Related resource areas: Beef Cattle


As calf weight increases, their value is less on a $/pound or $/cwt basis. In other words, there is a price slide down for calves that weigh 500 pounds compared to calves that weigh 400 pounds. This is important to understand because the added calf weight from creep feeding can not be priced at market value, but should be priced at something less than market price. As an example a calf price for a 500 pound calf at $1.00 per pound or $500 total and a $5.00/cwt price slide for a 560 or $0.95 per pound or $532 total. Therefore the extra 60 pounds returns an extra $32. The value of each added pound was worth $0.53 ($32/60 lb = $0.53). In 1995 with poorer calf prices, a 500 pound calf would bring about $68.00 per hundred pounds or $340 total. There was a less severe price slide and the heavier 560 pound calf sold for $66.42 per hundred or $372 total (560 x $0.6642 = 371.95). Again the extra 60 pounds brought $32 and the value of each pound of added gain was $0.53. Obviously not all situations result in exactly $0.53 per pound of added gain.

The dollar return for implementing creep feeding as a management tool can also be calculated. If the cost of the creep feed is $10/cwt and a calf eats on average 3.5 pounds daily, in a 90 day creep feeding period, the calf will eat 315 pounds. Using these numbers, the cost of feed for the 90 day creep feeding period is $31.50. In this scenario, the net return from creep feeding is $0.50 ($32 income - $31.50 feed costs = $0.50) per calf. The return from creep feeding in these calculations only includes the feed and no labor and equipment. Do the calculations with your numbers.


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