Lamb Feedlot Cost Calculators

Farm Table says:

Lamb feedlotting can be a profitable enterprise for Australian sheep producers, but success hinges on accurate cost projections. With profit margins often slim and significant resources required, having reliable tools to estimate profitability is essential before committing to this intensive production system.

Understanding the main cost components is crucial for accurate feedlot budgeting:-

Store lamb costs: Typically the largest expense, representing 55-65% of total costs when finishing to trade weights
Feed costs: Generally 25-30% of total expenses, but can increase to 31-37% when targeting heavier export weights
Labor costs: Usually calculated at a per-head-per-day rate (e.g., 5c/lamb/day for self-feeders)
Infrastructure: From basic pens to sophisticated covered systems costing $350,000-$1,000,000
Machinery running costs: Typically calculated per tonne of feed
Animal health treatments: Including drenches and vaccines
Transport and selling costs: Including freight and commission

Calculating Profitability

Profit margins in lamb feedlotting depend on several key metrics

1. Store lamb relativity: The calculator helps determine if store lamb prices represent good value relative to finished prices. Values at or below 85% of finished lamb prices generally offer better profit potential

2. Growth rates: Lambs typically need to gain >300g/day to be profitable

3. Feed conversion ratio: Usually around 5:1 (5kg feed per 1kg gain)

4. Time on feed: Directly impacts total costs

Making Informed Decisions

The Sheep Feedlot Calculators allows producers to test multiple scenarios with different variables. Before committing to feedlotting, consider:

– Securing forward contracts to reduce price risk

– Developing a clear per-head budget covering all costs and potential returns

– Evaluating seasonal price variations and store lamb price

– Assessing feed availability and prices

With tight margins in lamb feedlotting, these calculators have become essential management tools for Australian producers seeking to maximize returns and minimize risks in an increasingly competitive industry.