Breedcow+ Prices

Step 3 - Complete the Breedcow+ Prices worksheet

Open the Prices sheet in Breedcow+. Note that data can only be entered in the cells with a yellow background.

The Prices worksheet from Breedcow+

The Prices worksheet logically follows on from the entry of information in the AECalc worksheet.

It is important to record all of the assumptions underlying the inputs in the Prices sheet through the use of notes in the spaces provided. Note: use traded weights for your final sale weights.

The sale weights specified in the sale weight cells of the AE Calc sheet should be paddock weights and they can now be reduced back to sale weights to allow for shrinkage in transport and the effect of a curfew.

There is a separate section in the Prices worksheet to enter the sale prices and sale weights for females set aside from the breeding herd or spayed. As a default value, these set aside females use the weights allocated to the female herd in the AE Calc worksheet but they can be overridden if sale prices and weights are expected to be different to the remainder of the breeding herd.

Whilst the weights transferred from AE Calc are live weights, which would require Prices entries for selling value to be inserted as price per kilogram live, it is possible to overwrite the weights shown in the Prices worksheet to show expected dressed weights and enter prices on a per kilogram dressed basis. Note that this overwriting breaks the connection between AE Calc and Prices, which would preclude future editing of AE Calc sale weights from flowing through to Prices.

The Prices worksheet calculates net sale prices by multiplying sale weights by price per kilogram, then deducting all selling costs including freight. As long as sale weights and sale prices are entered consistently as either live weight or dressed weight, there should be no error in the final value per head used in the Breedcow worksheet. If values per head shown in the summary tables of the Prices worksheet appear to be either overstated or understated please check all components of the prices calculations.

Selling costs are divided into three columns in the Prices worksheet. The first column collects selling costs that are levied as a percentage of total value. This column is labelled as “commission - % of value” and can include value-based insurance. The second column collects selling costs that are levied on a per head basis. Freight costs associated with selling livestock are also entered on a per head basis but are dealt with in a third column.

Selling costs can be an important factor in the relative level of profit produced by alternative management strategies and need to be entered in the Prices worksheet according to the selling method chosen for the herd management strategy.

Generally, selling costs will depend on the method of sale. The consignment of cattle direct to meatworks will incur freight costs and a transaction levy but there is unlikely to be commission paid. The sale of livestock in the paddock is likely to incur commission and a transaction levy but no freight or other charges unless delivery is at a weighing facility. Livestock sales made through a saleyard are expected to incur freight (usually less than for meatworks sales), commission (usually at a higher rate than paddock sales), transaction levy and saleyard fees including weighing and NLIS reading fees.

A calculator is provided at the bottom of the Prices worksheet to assist with the calculation of the expected costs of freight to different destinations. To assist estimating the number of head per deck for each group, a table based on weights is provided beside the freight cost calculator.

Head per deck table (left) and Transport Calculator (right)

The Prices example

Points to notes:

1. The prices and selling costs entered in the example Prices worksheet are for some sales via liveweight auction while some are direct to works back-calculated to show liveweight at sale. Sale values reflect an expected average for each class of livestock.
2. Wherever stock are sold they are expected to lose 5% of their bodyweight between the property and the point of sale.
3. The costs incurred through selling at saleyards can include fees for handling, weighing, levies, commission, NLIS tags, and yard dues. Sales direct to works incur transport costs and the MLA levy only.
4. The freight cost column indicates the costs per head for transporting the various classes of livestock to sale (calculated using the freight cost calculator at the bottom of the worksheet).
5. Average sale values and weights for all mature breeding herd females are expected to be similar, so the same sale prices and costs have been allocated.
6. The sale values used for steer classes reflect the values achieved at the Roma saleyards or the Dinmore meatworks for the five years to the end of 2105. Generally, the value per kilogram falls as steers increase in age.
7. The net values shown in the rightmost column of the Prices worksheet are the ones transferred to the Breedcow worksheet.

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Once the Prices worksheet has been completed move onto the Huscosts worksheet.

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