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Replacement Costs

Understanding Ranch Businesses

The cost of raising a breeding replacement female is a critical question for managers of breeding livestock operations, but it is often difficult to answer because many of the costs involved are hidden or not easily identifiable.

Ranch Vision calculates the various costs incurred in raising breeding replacements, including:

  • The opportunity cost of not selling the female animal at weaning

  • The opportunity cost of investment

  • Grazing costs

  • Costs involved in maintaining a breeding male

  • Losses incurred from death, infertility, poor performance and culling

  • Feeding

  • Other Cash and non-cash direct costs such as Veterinary services, vaccines, dewormers, supplies, etc.

Ranch Vision also factors offsets such as:

  • Sales of culled breeding females

  • Wool or mohair sales (for sheep and goats)

With Ranch Vision, ranch managers are able to identify the true net cost involved in raising breeding replacement females.

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