News

Economist says producers shouldn’t focus solely on price per pound

A livestock economist says that at current price levels, cattle producers can become too focused on price per pound. University of Kentucky’s Kenny Burdine tells Brownfield, “If you get too focused on price per pound, sometimes you can miss dollars per head, and that’s an even more important number.”

He says calf prices in Kentucky recently average $3.78 per pound for 450-pound steers, while 550-pound steers averaged $3.35 per pound. “If I get focused on that price per pound and I think I don’t want to add 100 pounds and give up 43 cents, we missed the fact that despite that 43 cent lower price per pound, that animal at 550 pounds is worth over $140.00 more than he was at 450 pounds,” he says.

Burdine says price shifts of this magnitude would have been unheard of three years ago, but have become more of the norm in today’s environment.