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<blockquote data-quote="neilo" data-source="post: 3080714" data-attributes="member: 348"><p>Those cattle may make more at sale time, for the reasons you state, but that increased value is built into the calf as soon as it drops out of the cow. The highest sale prices don't necessarily equate to the highest margin for a rearer, with margins on rearing B&W calves (to finish) very often better than at the quality end of the market. Less capital is also tied up in the venture, so less risk.</p><p></p><p>Your friend Bob is doing VERY well to have an average price of £203 on beef X calves at 2-3 weeks old, especially if a dealer has had a cut first. They may well be 'improvers', but I'd be wary about colostrum intakes on those rougher types of calves, which is the key to low mortality and health issues. You will only need one calf coming in with Crypto, Rotovirus or BVD (for example), to blow margins out of the water. Of course, that's not to say taking those increased risks won't necessarily reap greater rewards.</p><p></p><p>Dunbia are doing a contract calf rearing scheme now, where the rearer follows a blueprint and the figures (on paper at least) look attractive. Some of the key points on enterprise performance appear to hinge on low health issues & mortality. Calves are all sourced directly (certainly not from the disease melting pot of a mart) and they come in and out in batches, with thorough cleaning and disinfecting between batches. That batch rearing followed by C&D seems to be common to most large scale calf rearing enterprises, as it is with pigs and poultry. That level of cleanliness and disease control would be very hard to achieve with dribs and drabs coming in, particularly from multiple sources of unknown, maybe dubious, health/colostrum status. </p><p></p><p>Good luck with your venture. It will be interesting to read updates as you proceed, if you are willing to post them.<img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile :)" loading="lazy" data-shortname=":)" /></p></blockquote><p></p>
[QUOTE="neilo, post: 3080714, member: 348"] Those cattle may make more at sale time, for the reasons you state, but that increased value is built into the calf as soon as it drops out of the cow. The highest sale prices don't necessarily equate to the highest margin for a rearer, with margins on rearing B&W calves (to finish) very often better than at the quality end of the market. Less capital is also tied up in the venture, so less risk. Your friend Bob is doing VERY well to have an average price of £203 on beef X calves at 2-3 weeks old, especially if a dealer has had a cut first. They may well be 'improvers', but I'd be wary about colostrum intakes on those rougher types of calves, which is the key to low mortality and health issues. You will only need one calf coming in with Crypto, Rotovirus or BVD (for example), to blow margins out of the water. Of course, that's not to say taking those increased risks won't necessarily reap greater rewards. Dunbia are doing a contract calf rearing scheme now, where the rearer follows a blueprint and the figures (on paper at least) look attractive. Some of the key points on enterprise performance appear to hinge on low health issues & mortality. Calves are all sourced directly (certainly not from the disease melting pot of a mart) and they come in and out in batches, with thorough cleaning and disinfecting between batches. That batch rearing followed by C&D seems to be common to most large scale calf rearing enterprises, as it is with pigs and poultry. That level of cleanliness and disease control would be very hard to achieve with dribs and drabs coming in, particularly from multiple sources of unknown, maybe dubious, health/colostrum status. Good luck with your venture. It will be interesting to read updates as you proceed, if you are willing to post them.:) [/QUOTE]
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