Let’s Talk Efficiency!!!

Taken from – http://www.midlandbulltest.com/blog/

Welcome back to the “Final Sort Blog!”  We need to talk efficiency folks! It’s all about getting MORE for LESS…working SMARTER…not HARDER!

In spite of the work done here at MBT, efficiency STILL seems to be elusive to some folks.  We recently communicated about the efficiency of an unnamed herd.  A tremendous number of assertions were being made, but there was no measurement of INPUTS!  Now it is true that they had a great understanding who the “apparent” easy do-ers were in their herd, but they moved them right into the category of “efficient bulls.” Now we must agree!  It is certainly nice to see those nice, soft, round sided calves at weaning.  Those shiny buggers that pair growth and gain into a beautiful package that knocks your eyes out!  We’ll take that any day, but we’ve said it once, and we’ll re-assert!  The margin is in the middle…lodged right between the money you get and the money you give!

The whole conversation makes me think of two geldings Gus and Sam standing out under the big cottonwood tree swatting flies.  Gus and Sam are nearly a matched pair, both golden in the summer sun, fat and a bit sassy.  The only thing that separates Gus and Sam is a board fence that runs between the grass pasture that Gus stands in and the dry lot corral Sam lives in.  Gus grazes nearly all day long until the summer sun blazes down when he finds relief under the big oak tree.  Sam gets about three flakes of grass hay every morning and evening spending the majority of his day coveting Gus’s knee deep luscious green grass!  Now I assure you, we think the world of Gus, but he’s just an easy keeper. Sam is able to maintain the same body condition on less!  Hands down, Sam is the most efficient specimen in the herd!  Efficiency happens when each pound gained requires less than average input and ‘ol Sam nails it!

The fallacy happens when folks only focus on the gross.  It doesn’t matter if you gross your first million but you spent two million to make it happen.  The same is true when we feed cattle.  Here at Midland, we search out those individuals who require less feed (and therefore money) to gain each and every pound.  That trait must be paired by the same animal with the ability to also out gain their contemporaries!  That’s the combination we are looking for!  Simply spoken, it’s doing more with less!

It is mighty hard to refocus our priorities when we’ve programed ourselves for years to seek those 650 pound weaning weights.  Many a shiny bragging rights have accompanied those plump weaning weights here in our Big Sky country.  Those plump shiny calves do paint a pretty picture as they trot across the scale.  But!  Consider this….here at Midland, we focus on achieving those same goals, all the while minimizing your feed costs.

For Example…

Two bulls were tested at Midland and both came off the efficiency test at 1,100 lbs.  Their stats are as follows:

Bull A – ADG 3.47, Dry Matter Intake 28.73 lbs/day, Feed to Gain Ratio 8.28 lbs of feed/lb of gain, RFI 3.90

Bull B – ADG 3.26, Dry Matter Intake 22.45 lbs/day, Feed to Gain Ratio 6.90 lbs of feed/lb of gain, RFI 2.77

Without measuring their inputs, it appears that the bulls performed almost identically with Bull A showing a slight advantage in the raw ADG.  When the inputs are added to the equation, the picture changes radically!  Bull B consumed 6.28 pounds per day less than Bull A marking a 21% difference!  When we put the dollars and cents to it, that’s an $80-$120/head savings in the feedlot and $60-$80/year savings on daughters retained in the cow herd without impacting any weights of their calves!

We’re in a dog eat dog business and we can’t afford to have inefficiency unnecessarily inflating our costs by 21%; and we can’t afford to waste 21% of our grass, hay and silage!  The dirt needed to produce that grass is simply too expensive to throw away 21% of the crop!  And folks!  That’s just the cost side!  These savings create growth opportunity as that 21% is an unrealized opportunity allowing us to increase our carrying capacity and incremental revenue!   Imagine if your retirement planner explained that you could earn an additional 21% return on your investments!  We certainly wouldn’t leave that opportunity on the table!

Let me say that one more time!  You have a choice!  Efficient cattle will cut your incremental cost thereby increasing your margins.  At the very same time, in a static environment, you will find that you are able to INCREASE your carrying capacity!  Wow!

Long story short….fat does not equal efficiency and you can’t select for a trait unless you measure it! AND!!! EFFICIENCY PAYS!