I frequently remind students that Animal Science is a math-based degree. By that same token, production agriculture in general, and specifically beef production is a math-based enterprise. Why? Because the only way to make sound management decisions which will impact future profit potential is based on facts arrived at by mathematical analysis. Management decisions based on emotions and/or tradition seldom lead to the financial outcome we desire.
Efficiency can be defined as the ability to achieve an end goal with little or no waste of effort or inputs. Being efficient means achieving results by utilizing the resources you have in the best possible way. Bottomline: something is efficient when we produce more from less and all processes are optimized. This includes the use of money, human capital, production equipment, land and energy.
The definition leads to several questions which cow-calf operations should answer:
What is my goal? If your goal is living on a ranch as a way of life or ownership of cattle is a family tradition that you enjoy regardless of profitability, this article may not pertain to your operation. If your goal is maximizing profit potential, consider the following. You need to define your goal and identify the purpose of your operation in order to determine the most efficient way to achieve it.
What resources are available and at your disposal? Resources available include land (forages and soil), cattle, equipment, capital to invest and how much time and management expertise you have available to commit to your cattle enterprise. Be specific when listing these resources. For example: all quarter sections of grass are not equal. Does your quarter section include Bermuda grass or native range plants? Is there wheat acreage included? If you have improved grasses (like Bermuda) do you live in an area of high annual rainfall or low annual rainfall? Have you tested to determine the soil pH, N, P & K levels? Keep in mind your customers are a valuable resource. Feedback from customers is essential information which can be used to improve your product. This feedback can lead you to better decisions about improving your management or your genetics. This feedback (in the form of data documenting cattle health, growth, carcass merit and yield) can be used to better market your cattle in the future.
Be thorough in evaluating your resources. All the resources in your production system interact and are relative to each other in determining production levels, efficiency and profit potential. The potential of each resource needs to measured, quantified and optimized.
