An economic evaluation of the differences between intensive and extensive beef production systems.

A model to evaluate economic criteria involved when cattle are raised on high-forage diets prior to finishing or finished directly after weaning was developed using data from two experiments. In Exp. 1, each year for 3 yr, 136 Charolais-cross calves were weaned and allotted to either an intensive system, in which they were immediately finished on a high-grain diet, or an extensive system, in which they were wintered on crop residues, grazed on summer pasture and finished on a high-grain diet. In Exp. 2, 160 British breed steers were wintered, in one of eight different wintering systems utilizing crop residues, using supplemental protein and(or) alfalfa hay. After wintering, the steers grazed summer pasture and then were finished on a high-grain diet. Overall cost of gain and final "break-even" price were lower for cattle finished through the extensive system except when the price of corn was very low in relationship to other inputs. Interest costs were higher for cattle in the extensive system. Increasing the feeder calf purchase price had almost no effect on differences between the systems. Corn price and purchase price affected both systems similarly, whereas interest rate, wintering yardage and finishing yardage affected each system differently. Because of the additional weight produced through the extensive system, it yielded lower final "break-even" prices in most situations.