Comparing net returns in the feedlot: Bos Taurus vs. Bos Indicus influenced steers with varying anabolic implant intensity

Abstract

There are two main beef cattle breed types: Bos Taurus (BT) and Bos Indicus (BI). Past research has demonstrated various expected differences in growth, temperament, feeding behavior, and carcass characteristics between these breed types when administered varying levels of anabolic implant. However, little is known about the differences in expected economic returns between these cattle types. The objective of this research is to simulate and compare the expected net returns of BT, Angus (AN) steers and BI influenced, Santa Gertrudis (SG) steers, with moderate or high intensity levels of implants relative to a control with no implant. The animal performance and carcass data for this economic analysis was provided from a recent feeding experiment of AN and SG influenced steers. In the experiment, sixty steers were stratified by weight and breed in a 2 x 3 factorial design examining the two different breeds: AN (n=38) or SG influenced (n=22), and three implant strategies: no implant (n=20), a moderate intensity implant protocol (d0 implant: Revalor-G, d56 implant: Revalor-IS, d112 implant: Revalor-S; n=20), or a high intensity implant protocol (d0 implant: Revalor-IS, d56 implant: Revalor-S, d112 implant: Revalor-200; n=20). The steers performance and carcass data were used together with publicly available price and input costs data in the simulation of net returns per animal for each of the treatment groups. Results demonstrated that both moderate and high intensity implanted BT steers have higher expected net return ($78.70/hd. and $75.84/hd. respectively) compared to BI moderate and high intensity implanted steers ($47.03/hd. and $6.98/hd. respectively). Stochastic efficiency analysis with respect to a function demonstrated when certainty equivalent values are constrained to those ≥$0, only the moderate implanted BT steers would be included in the efficient set.