Open lots vs. Hoop Beef System
It is always interesting the types of questions I am asked in regards to the Hoop Beef System. For the non ag folks, they always seem a bit confused as to the need for cattle housing. I explain to them how it is important not only for my customers but also on a global standpoint to produce quality, nutritious beef utilizing the least amount of inputs as possible. They can relate to the need for housing when it is put in terms they can understand. Ironically enough some of the most “professional” cattle people have a hard time grasping that there is a better way to feed cattle than fencing off a 50,000 sq. ft. pen per 200 head of cattle and hoping for good weather.
In a recent conversation with a prospect, I walked through this analysis comparing the costs of constructing a new outside feedlot to the Hoop Beef System for 5000 head capacity. We agreed that in both situations we have bunks and waters and fencing to move cattle from their pens to a working facility and load out. The question really becomes can I build the Hoop Beef System building for amount of the additional land costs and cost of a lagoon assuming an equal cost of operation. The Hoop Beef System footprint is 16.3 acres versus 52.6 acres on an outside feedlot. At $10,000.00 per acre there is a $363,000 difference in land cost between the two layouts.
In the land needs assessment 6 acres was allotted for the lagoon. We will assume that this will cost approximately $1.5 million to construct to today’s requirements. With the additional land cost and lagoon totaling $1.863 million difference it means there is $372 dollars per head to build a Hoop Beef System and end with the same cost per head of capacity. It will most take an additional $100 per head of capacity to build the Hoop Beef System. This difference can be paid off in one turn of cattle with the same over $100 per head advantage over the lifetime of the facility when you achieve the 14% improvement in Average Daily Gain and 17% improvement in feed efficiency that we see at our feedlot vs. closeouts in outside yards using a national database.
Contact us and we will do the comparison for your Feedlot. We look forward to hearing from you.
We Got Ya Covered…Don’t Track it in the House.