Listed costs of production were similar in 2009 compared to 2008 but selling prices for the average livestock producer were lower. This information is based on the statistical analysis from the farmers and ranchers enrolled in the Farm/Ranch Business Management Program through the Mitchell Technical Institute.
The hog finishing enterprises showed a loss of $2.57/cwt. of pork produced in 2009 compared to $.68/cwt. profit in 2008.
The cow calf enterprises showed a loss of $23.60/cow in 2009 compared to a loss of $12.59 in 2008. The beef backgrounding was profitable in 2009 with a profit of $9.72/cwt. of beef produced compared to a profit of $10.58/cwt. in 2008. Beef finishing loss was $1.79/cwt in 2009 compared to a profit of $2.71/cwt. in 2008.
The dairy enterprises showed a loss in 2009 as the average price of milk was $12.54/cwt. of milk compared to $18.26 in 2008. The expense per cow in 2009 was $2696/ cow compared to $2816/ cow in 2008. The cost to produce 100 pounds of milk in 2009 was $13.26 compared to $14.79 in 2008. The loss per cow was $224.43 in 2009 compared to $359.70 profit per cow in 2008. The loss per 100 pounds of milk produced was $1.11 in 2009 compared to $1.88 profit in 2008.
A major factor that will affect the profitability will be the death loss in the livestock enterprises and feed costs and selling price. Good management of your livestock enterprises will increase your chances of profitability.
The Farm/Ranch Business Management Program is offered to farmers and ranchers in eastern South Dakota through Mitchell Technical Institute. The purpose of the program is to assist farm and ranch operators in upgrading their management skills.