How to Calculate Feedlot Profit
Before you buy weaners or lock in a finishing ration, it pays to run the numbers. Feedlot profit depends on what you pay for animals, how much feed they eat, how fast they grow and what you can sell the carcass for on the day of slaughter.
How do you calculate feedlot profit before buying cattle?
Subtract total cost per head — opening livestock value, feed, vet, transport and mortality — from expected carcass sale value. Work out days on feed from weight gain and average daily gain (ADG), then estimate feed tons and cost. Compare profit per head to break-even carcass price. Use the feedlot calculator to run the full batch in rand.
What you need before you start
Gather figures you can defend — not optimistic guesses. For each batch, you typically need:
- Number of cattle and starting live weight per animal
- Target slaughter or sale weight
- Expected average daily gain over the feeding period
- Feed price per ton and realistic daily feed intake as a percentage of body weight
- Dressing percentage and expected carcass selling price per kilogram
- Purchase or opening value of the animal, plus vet, transport, yard and mortality allowances
On many South African farms, maize price, concentrate blends and transport to the abattoir move month to month. Use current supplier quotes and recent market reports for your area.
The calculation in plain steps
1. Work out weight gain and days on feed
Subtract starting weight from target weight to get total gain per animal. Divide that gain by your expected average daily gain to estimate days on feed. If you already know the feeding period from past batches, use that instead.
2. Estimate total feed required
Multiply average live weight over the period by daily intake (as a percentage of body weight) and by days on feed. Add a wastage allowance for feed dropped in the trough or spoiled in the pen.
3. Calculate feed cost per animal
Convert feed required to tons, multiply by price per ton, and add any per-animal handling or transport cost for feed delivery.
4. Estimate sale value
Apply dressing percentage to live weight at sale to get carcass weight. Multiply by your expected carcass price. This is where small changes in grade or price per kilogram have a large effect on margin.
5. Compare total cost to sale value
Total cost per animal includes opening livestock value, feed, other costs and a share of mortality. Subtract from expected sale value to get projected profit or loss per head, then multiply by batch size.
A simple example
A farmer finishes 20 weaners from 200 kg to 480 kg live weight at 1.4 kg average daily gain — roughly 200 days on feed. Feed costs R5 200 per animal; opening value is R6 800. Expected carcass weight at 56% dressing is about 269 kg. At R52 per kilogram carcass, sale value is near R14 000. Before other costs, gross margin per animal is roughly R1 000 — but a R2 move in carcass price or 10 extra days on feed can wipe that out.
That is why farmers run sensitivity checks when maize or selling price shifts.
Break-even price matters
Break-even carcass price is the price per kilogram you need to cover all costs in the batch. If market price sits below that figure, you are planning a loss unless growth or feed efficiency improves. Always compare break-even to what buyers are actually paying this week, not last season.
Frequently asked questions
What inputs do you need to calculate feedlot profit?
Starting and target live weight, average daily gain, feed price per ton, daily intake as a percentage of body weight, dressing percentage, carcass price per kilogram, purchase or opening value, and allowances for mortality and other costs.
How do you work out days on feed for finishers?
Subtract starting weight from target weight to get total gain, then divide by expected average daily gain. If you know the feeding period from past batches, use that figure instead.
What is break-even carcass price?
It is the carcass price per kilogram needed to cover all batch costs. If market price sits below break-even, you are planning a loss unless growth or feed efficiency improves.
How does average daily gain affect feedlot profit?
Higher average daily gain shortens days on feed and usually reduces total feed cost per animal, but only if feed conversion ratio and carcass grade stay acceptable.
These guides and calculators are planning tools only. Check results against your farm records, feed labels, supplier prices and professional advice from your nutritionist, veterinarian or financial adviser where needed.