Cowtrade

The Cowtrade program is used to calculate the prospective profitability of breeder groups (i.e. some of them will have or already have calves) while the Bullocks program is used to calculate the prospective profitability for groups of steers and empty cows or heifers. The Cowtrade and Bullocks programs can also assist with decisions where sales are forced by drought or a variety of other circumstances. It is usual to limit a cow trade or bullocks analysis to the short term, usually for a period up to 12 months.

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Note: The Cowtrade program (and its companion program Bullocks) do not use data from or directly contribute data to any other Breedcow+ and Dynama+ program.

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When buying cattle to fatten or grow out, it is logical that the most profitable options are the ones to choose. The profitability criterion for choosing between fattening or growing opportunities is nearly always the gross margin per adult equivalent after interest. If finance is tight to the degree that the feed cannot be completely stocked, then the gross margin expressed as a percent of herd and expenses capital is a more satisfactory criterion. The Cowtrade and Bullocks programs calculate both these measures of profitability.

If selling stock to reduce grazing pressure or to relieve financial pressure, the object should be to achieve the grazing or financial objective with least damage to future income. If the issue is grazing pressure, sell first those groups with the lowest gross margin per adult equivalent after interest. If the issue is financial, sell first those groups with the lowest percent return on livestock and expenses capital.

Using the Cowtrade program

The program is located with the [Breedcow and Dynama Software], within the Tools tab, which can be accessed after registering or logging in to use the free software.

A new scenario can be created by clicking the Save button beside a blank yellow name bar and can be named by typing in the yellow bar. This scenario or previously created scenarios can be edited by clicking the Open button.

To open an example scenario click the Copy button beside the example scenario and it will be copied into your scenario list where it can be opened as your own scenario.

A scenario can be shared with another user by clicking the Share button then entering in the email address for the user you wish to share it with. Note that this must be the email they have used to register their account with at https://breedcowdynama.com.au the shared scenario will appear in their scenarios list for the relevant program.

Example one: Purchasing PTIC Cows for Trading

Copy the example scenario (Purchase of PTIC cows for trading) from the examples list and open the scenario, this will illustrate how the program may be used in the following example.

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Note: The yellow cells are for inputs and can be adjusted, while the rest are calculated outputs.

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The Cowtrade program allows for the input of Standard weight of one Adult Equivalent and Extra Adult Equivalents for cow weaning a calf, the default values being 455kg and 0.35 respectively. One Adult Equivalent is a non-lactating animal of average 455kg liveweight carried for a year. It is unnecessary to change these values unless the user is using a different Adult Equivalent convention for comparing grazing pressure and they wish to tailor it to their requirements.

Example one describes pregnancy tested in calf (PTIC) cows being purchased early in July and sold in June of the following year. The calves have an average birth date of November and are to be sold as weaners through the local yards. Cows are to be sold to the abattoirs. Figure 1 displays the initial input values for the scenario.

1. Begin by entering the Start date for the analysis (usually the date the stock are purchased), Expected calving date, expected future Sale date for adults, Sale date for progeny, Weight of breeders at start and sale, Weight of progeny at 5 months and sale. Sale can be either a normal sale, or a transfer at valuation of weaner or breeder back into the herd. These dates and weights are used mainly to calculate adult equivalents.
2. When entering the Starting value/head of group for purchased cattle this should be their landed value. For a destocking analysis assessing breeders already in the herd, the net value that would be achieved if that animal were to be sold should be used.
3. Sale values may be entered as per head net values, or may be calculated from weights, price per kilogram and selling and transport costs using the calculators at the bottom of the page.
4. Enter the Interest rate for Gross Margin after interest, this should be viewed as the opportunity cost, especially if using business funds rather than borrowed funds.
5. Enter the appropriate Weaning rate from breeders and Death rate on stock classes.
6. Enter expected Husbandry cost for the stock classes based on the duration of the analysis.