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How to make creep feeding profitable

Creep feeding can be an excellent tool for improving the overall weaning weight of your calves. Thus it can be a good management and economic option for improving your bottom line.

There are many factors to consider when looking at creep feeding such as calf prices, the price of the feed itself, and the labor you are able to commit to it. Since this is not a one-and-done type of thing it is something that you will have to look at every year. This is because the factors involved, such as market prices, will change from one year to the next.

It is important to look at the factors that will matter to you because, like many other things that are involved with raising beef cattle, it is not a blanket option. What works for one operation will not always work for another.

So what are the options that you should look at when deciding to start creep feeding? Well here are some things that you can look at to decide if it is right for you.

What is creep feeding?

Creep feeding is providing a highly digestible supplement that is specifically for beef calves. This can come in the form of a pellet feed or just in a ground-up form. The key thing here is that it is provided in a way that the older cows cannot get to it.

This is done by putting it in a feeder with a cage around it that has an opening that is only a couple of feet wide so the smaller calves are the only ones that can get to it. As with any supplement, you will want to place the feeder near where they congregate such as a water source or loafing area.

As calves reach weaning age their nutritional requirements also will increase with them. They will need to consume more nutritionally rich foods in order to meet their demands for growth. The problem with this is that usually during this time their mother’s milking ability and the quality of the forages will go down. So in order to fill the nutrition gaps providing a creep feed may be necessary.

Do not think that creep feeding only benefits the calf, it can also benefit the mother as well. With the calf getting its nutrition elsewhere there will be less of an energy demand on her as well. With this lower demand, she can utilize the feed she consumes to do things like putting weight back on to prepare for the breeding season.

Here are some pros and cons associated with creep feeding:

   Pros

   Cons

If you would like to read more about the pros and cons of creep feeding I go into more detail in a previous article “Pros and Cons of Creep Feeding”.

Considerations for Creep Feeding

One of the main things to look at before deciding to do this is the overall condition of your pastures. Creep feeding has been shown to be most beneficial when pasture conditions are poor. In those conditions, average feed conversion has been shown to be 4-6:1 or 4 to 6 lbs. of creep feed for 1 pound of gain. If the pasture conditions are excellent then average feed conversion drops to 14-18:1.

Another thing to consider is the time of year that you will be putting this feed out. There have been many studies that have shown the benefit to provide creep feed 60 days prior to weaning. When you do this it gives the calves time to get used to eating out of a bunk and will make weaning less stressful for them. It will also be a benefit to them if they are put in a feedlot situation after because they will already know how to find food.

Ultimately you will have to decide if the cost of creep feeding will actually provide more profit for you. Speaking of determining if it will be profitable for you….

Will it be profitable?

Now we will get a little bit into the nuts and bolts of making this choice. When you are calculating the cost of creep feeding there are some more things to consider than just the cost of the feed.

When you are looking at the total costs you will also need to include the depreciation of the equipment that will be used as well as the cost of delivery. Since you do not want to work for free you will need to include the labor costs associated with doing this as well.

Now that you have the overall cost of doing this you will need to look at if it will be lower than the expected revenue that you will be getting for those calves. If you are not sure how to do this may I suggest going to Beef Basis. It is a website that will allow you to predict what price you will be getting at sale time.

The price slide is another financial term to consider when comparing profit and cost. There is a noticeable difference between creep-fed calves and non-creep calves. The creep-fed calves make fetch a higher price overall. However, on a $/lbs. basis they will be lower than the non-creep-fed.

Example

Let us say that you are looking to sell some calves that are in 2 different groups you are thinking of creep feeding. In one group you decide not to and they come out to be in the 550lbs area. For the second group, you do creep feed to the tune of putting on an extra 60 lbs to bring them up to the 610 lbs region.

The 550lbs steer may be worth $1.10 per pound and the creep-fed one could be $1.05. Now initially it may seem to not be worth it but let’s finish the math up first. The 550lbs one would be worth $605 (550x $1.10/pound) and the creep-fed ones would generate $641 (619x $1.05). The additional 60 pounds of the gain would make an additional $36 or $0.60 per pound of gain. This would mean that whatever creep feed that you used could not cost more than $0.60 to add 1 pound of gain.

In this example, we will be using a feed conversion of 6 lbs of feed per 1 lb of gain. (this is not set in stone just what I am using to make a point). If we have a feed price of $120 per ton that would equal $0.36 per pound of added gain. So by this figure, it would be profitable to creep feed.

What types to use

Now that we have crunched the numbers and you have decided creep feeding is for you let’s look at options. There are many different options that you choose to go with.

Creep feed generally falls into 2 certain categories:

Now both of these types of feed will include some type of salt in the mix. The amount of salt that you will use will depend on if you want to increase or decrease the overall consumption.

No matter what type you go with the rations will contain between 13%-16% crude protein. You will want to look at the gaps you are needing to fill to determine which one will be best for you.

If you are capable and have the equipment then mixing your own creep feed may be a more economical option. What people typically do with this is mix a couple of grains such as corn and oats along with a type of mineral mix into a grinder/mixer. With this option then you will need to include the price of the mixer if you buy it new. Or the depreciation of it when you are determining the overall profitability of creep feeding.

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