With recent cattle markets causing turmoil and creating significant losses in the feedlot, many producers are looking for answers. The feedlot industry carries significant open market risk as a large share of the cattle on feed remain unhedged. Current finished open market cattle losses in the feedlot according to www.cattlekrush.com as of December 6th are at a $517/ loss per head. Sterling Profit tracker for the week of November 28th is showing a $562 / loss per head.
As I talk to feedlot producers, I am always impressed on how well producers have done on improving the feedlot performance on daily gain and efficiency. These improvements have been the industry's outcome on focusing on cattle genetics and management for optimal performance, but are we overlooking profit performance?