Buying and selling cattle is a tough but lucrative business. According to an article by Chron, overall farm profit margins range from 24% to 33% per head of cattle. In addition, cattle ranchers earn two times more than an average American worker.
That said, do not expect that your cattle business will boom just like that. You need to invest your time, effort and money in order for your business to flourish. Here are some things you can do to boost your profit.
Invest in quality cattle
Choosing high-quality cattle is essential to making a good profit. It is the one area of your business that should never be scrimped on. The quality of cattle you choose now will be the determining factor in the next generation of cattle on your farm. Quality cattle will produce offspring that have good genes and desirable traits that can increase the chances of your business remaining profitable during low cattle cycles.
Take into consideration the breed you want to have. Some breeds are more likely to produce high-quality meat, while others are more likely to produce more milk. If you are looking for dairy cows, consider their annual milk production. Cow sellers usually keep a record of the milk their cows produce.
Take care of your cattle
Cows that are well taken care of will yield better products, such as milk or meat. Cows that are not receiving proper nutrition tend to be sickly, produce less milk and low-quality meat. If you feel that your cows are not receiving proper nutrition, give them proper supplements.
Make sure their habitat is livable. Ensure that your cattle stockyards are large enough for your cattle population. Make sure to provide them with proper protection from harsh weather conditions, such as rain, snow or extreme heat. Maintain proper ventilation inside your barns.
Control feeding expenses
Food probably constitutes one of the biggest expenses in your cattle business. You can cut feeding expenses by feeding them hay. Make sure, however, that you select high-quality hay so you don’t compromise your cattle’s nutrition.
Cattle that are not receiving enough nutrients may enter into starvation mode that can affect their reproductive cycle. This will result in them breeding late in the season or not at all.
Manure scoring is an effective way of monitoring if your cow is getting enough nutrition. This process estimates the digestibility of the cow and will help you identify nutritional deficiencies in the cow.
Market your product
Study the industry and know the tricks on how to effectively market your cattle business. Watch sales videos and check the current price of cattle on the market as this will give you an idea of what your buying offers can be.
You can also optimise your business by entering other related businesses, like selling milk or producing dairy products. You can invest in milking equipment so you can have a continuous flow of income while waiting to sell your animal.
Entering the cattle industry requires guts and hard work. However, the rewards of having a cattle business can be great.