What is the True Cost of a Feeding Program?

The cost of feeding cattle and livestock is more than just the feed itself! The cost per unit is a major factor and often the first and only cost consideration. However, there is the cost of the feed AND the cost of feeding the feed. This deeper consideration of feed cost includes time, labor, and equipment in addition to the cost per unit of the feed.

Do these items have value on your operation?

Your Time Trucks Tractors Fuel Feed Bins Feed Troughs

What is the true feed cost?

Feed cost x pounds fed + time to deliver the feed + cost of equipment and fuel to deliver the feed

Which costs less to feed? A 20% CP cube at $16/bag or $150 for a 30% CP Tub?

Let’s assume 2 lb./hd./day is fed for 50 head group of cows. In addition to the feed, we must determine what other costs are associated with delivering the feed.

FEED COST: Bagged 20% cube at $16.00 per bag or $0.32 per lb. X 2 =$0.64 for feed

TIME: 1 hour to deliver at $15/hr. - $15/50 hd. =$0.30 for time

DELIVERY: 20 miles: 2 gallons of fuel – ($3.50/gal X 2)/50 hd. =$0.14 for fuel

EQUIPMENT: Truck, feed shed and trough for $70,000, depreciated over 10 years

($70,000/10 yr.) / 365 days / 50 hd. =$0.38 for equipment

Total Cost =$1.46 / day

Now let’s compare the cost of using a tub program instead. A tub is delivered every 14 days, which is included in the math below.

FEED COST: A 30% Tub weighing 250 lb. at $150 is $0.60 /lb. X 0.75 lb. intake

= $0.45

TIME: 1 hr. X $15 / 50 hd. / 14 days = $0.02

DELIVERY: = $3.50 X 2 / 50 hd. /14 days = $0.01

EQUIPMENT: Truck $50,000 depreciated over 10 yrs. = $0.27

Total Cost =$0.75 / day

A tub program is lower in both the total cost and out-of-pocket cost for the feed when intake and delivery costs are taken into account. Save time, wear and tear on your equipment, and feed cost by using a tub program. In conclusion, it pays to use a tub in your feeding program!