PR - INCREASE FEEDLOT PROFITABLITY BY DIFFERENTIATING BETWEEN BEEF BREEDS
Feedlots currently feed animals according to a pre-determined feeding period that will result in market acceptable carcass weights. However, feedlots are price takers on the input and output side and the only way they can increase their profitability is to increase the productivity of their inputs. Precision agriculture in the feedlot, through incorporating the unique genetic growth potential of a breed, was identified to increase feedlot profitability and sustainability. This was done through applying production economic theory and calculating the point in time where the value of the marginal product is equal to the marginal factor cost and profit is thus maximized for each breed. The additional gross profit that can be generated through applying the PMFP is 6% according to the specific case study. The study indicates that the differences in the genetic growth potential of breeds can be used as a management tool in order to generate additional profit from any breed.