Feedlot: efficiency is the key tool to maintain profitability
The profitability of Argentina's beef production depends on achieving daily weight gains of at least 1.3 kg per head and maintaining a feed conversion efficiency close to 6.6 kilos of feed per kilo produced.
Argentina's beef sector is undergoing significant changes influenced by both domestic and international demand fluctuations. Producers face the challenge of maximizing their business profitability amidst these new paradigms, with feedlot finishing of cattle emerging as a viable strategy. Setting optimal benchmarks for production costs and feed conversion rates is essential for producers to thrive in this competitive environment.
In this technical analysis, the focus is on the example of fattening a 300 kg live weight steer, achieving a minimal daily weight gain of 1.3 kg per head. Efficiency indicators such as conversion rates and production costs are essential metrics that producers must closely monitor to ensure their operation is sustainable and profitable. With production costs not exceeding $1.2 per kilo, producers need to strategize effectively to remain competitive.
The profitability of the cattle business also depends on cash flow and sales distribution throughout the year, as well as the net income from the system. By optimizing feed conversion and reducing costs, producers can create a more robust business model that aligns with changing market demands while ensuring sustainability in their operations.