Feed Efficiency: Are you Prepared to Cash In?
by Susan Armstrong, Beef Improvement Ontario

The swine and poultry industries have shown us that is possible to make great strides in improving feed conversion of animals. In the past 10-15 years, pigs have gone from a feed conversion of 5.5:1 to 3:1 while chickens are now converting at 1.7:1. The cost of feed is the single largest expense in beef operations yet most genetic selection in beef cattle has focused on growth and carcass traits. In order for the beef industry to compete with the pork and poultry industries, we need to place more emphasis on feed efficiency.

Reducing the amount of feed consumed by each animal without sacrificing other traits will keep more money where we want it, in the farmer’s pocket. Let’s take a look at what you might see at a feedlot. Assume Tom Liskeard runs a feedlot of 100 animals. He likes steers to arrive at the feedlot at about 700 lbs. and ships the cattle at about 1250 lbs. His ration is made up of 25% silage, 5% supplement, 40% high moisture corn and 30% dry corn. Tom’s feed costs are $0.07 lb. feed on a dry matter basis. The following table shows a range in average daily gain (ADG) and feed conversion in Tom’s feedlot.

Table 1: Example of Differences in Feed Conversion and ADG in the Feedlot

Cattle from pen 1, on average, are eating 6 lbs. of feed for every lb. of weight gained. The lower the feed conversion number, the better the feed conversion and the lower the feed costs. The difference between pen 1 and 4 is $57.6/animal. On a 100 head basis, this is a huge difference of $5760. While this difference may seem extreme to some, there are Ontario feeder cattle today that certainly perform very similar to those in pen 1 or in pen 4. Which would you rather have in your feedlot?

ADG is very important in the feedlot but generally feed conversion is more important. It is interesting to note that although pen 2 has a higher ADG than pen 3, the total costs are lower for pen 3 because of the ability of pen 3 to convert feed more efficiently than pen 2.

Studies have shown that faster growing animals tend to convert feed more efficiently than slower growing animals although one can find bulls (that completed evaluation at BIO’s feed efficiency centres in 1999) with similar growth yet different feed conversions. The following table shows differences in some bulls for ADG and feed conversion.

Table 2: Examples of Bulls Evaluated at BIO Feed Efficiency Centres in 1999

Animals with a good feed conversion can have a significant impact on the bottom line for feedlot operators. In order for feeders to make a profit, they need to drive down feed costs and be willing to source cattle from feed efficient sires to make it happen.

Ron Bennett runs a feedlot outside of Walkerton. As a feeder, Bennett makes or breaks a profit on home ground. The difference is how efficient the cattle are utilizing feed. Ron feels the most important factors in operating a feedlot are good growth and carcass genetics and superior feed conversion. Bennett would be interested in sourcing cattle sired by bulls with feed conversions of less than 6:1.

Paul Coultes, who operates a feedlot nears Brussels, is also looking at ways to keep his costs down. Sourcing calves from feed efficient bulls has become more important to the economics of his feedlot as well.

Like the buzz words "Y2K" and "millennium" , the term "5X5" when referring to cattle, is creating excitement in the beef industry. These "5X5" cattle gain 5 lb. per day or better in the feedlot and convert feed at 5:1 or lower. Mark Gardiner, U.S. Premium Beef board member, who spoke at BIO’s annual symposium, believes that these "5X5" cattle will become the norm for the industry.

Genetic evaluations are needed to identify those cattle that are superior converters of feed, resulting in lower feed costs and greater farm profits. Several cattle breeders return year after year to have their bulls evaluated at BIO’s feed efficiency centres at either Arkell or New Liskeard. These are the only commercial bull evaluation centres in Canada that measure feed efficiency. Individual daily feed intakes are measured on each bull and weights are taken every 28 days. There is a wide range in feed conversion for bulls evaluated in 1999 as shown in the following table.

Table 3: Results for all Bulls Evaluated at Feed Efficiency Centres in 1999

* based on ration consumed

**assuming feed costs of $0.07 lb on a dry matter basis

Which bulls would you rather have? Considering that a herd sire passes 50% of his genetics onto the next generation, this can have a significant effect on the next generation of feeder calves. There is tremendous potential within each breed to significantly improve feed conversion. The bull with the poorest feed conversion was the same breed as the bull with the best feed conversion.

Top breeders, such as Chester Patton, have found an increased interest in feed efficiency information from customers. Chester is finding that more and more customers are looking for feed efficiency measurements as part of their criteria for buying a herd sire. Jim Duffin of Triple D Farms sells his bulls evaluated for feed efficiency to interested clients who are looking for a "total package" of information. He also uses some of his feed efficient bulls on his commercial herd. Jim feels that using bulls with good feed conversion presents advantages in his herd development and his finishing program.

Commercial cattlemen such as John Hamilton and Robert Musselman included feed conversion measurements as part of their overall selection when looking for a herd sire. John Hamilton had set his sights on one of two bulls at Arkell this year but after looking at the poor feed conversions on these two bulls, he found another bull of a different breed that met all of his criteria including a good feed conversion.

Robert Musselman was first interested in finding a herd sire with feed conversion measures when corn prices were hitting the roof 4 or 5 years ago. As a cattleman who feeds out his own animals, he wanted to keep feed costs down in the feedlot. This past spring saw his 4^th calf crop sired from feed efficient bulls. Musselman stated, "My end result will be a genetically superior herd with lower feed costs without sacrificing any other traits that are important for me." Future sires for Robert’s herd will come from one of the feed efficiency centres.