Industry News Prod. Costs cont. from pg. 7 depreciation. Per cow direct costs tend to stay constant as herd size increases. Direct costs may decrease somewhat if a large producer can negotiate a lower price due to larger volumes of product (feed, mineral, vaccines) being purchased or perhaps negotiate a lower pasture rent because the landowner sees value in getting to deal with less patrons. While herd expansion is a way to reduce per cow costs, it may not always be an option due to limits in access to land, labour and capital. Western Beef recognizes there are over 7,300 beef operations in Saskatchewan and based on the number of beef cows in the province, the average herd size is about 150 cows. Our study looked at 30 operations with an average herd size of 305 cows. While the study’s numbers are from actual operations across the province, the small sample size and wide variation (herd sizes from 50 to 1,000 cows) across study participants means the study average may not be reflective of the average producer in the province. Producers and industry can use our numbers for a starting point in discussions, but we strongly encourage producers to calculate their own cost of production using their operations production and financial details. To learn more about Western Beef’s cost of production study contact Kathy Larson at klarson.wbdc@pami.ca. B
SEPTEMBER 2012
LANE REALTY CORP. For the most VALUE & EXPOSURE that you deserve when selling your farm or ranch property, contact one of our Farm & Ranch Specialists today! BOB LANE - Regina JASON BEUTLER - Yorkton/Estevan ED BEUTLER - Yorkton/Whitewood GARTH HENDRY - Moose Jaw/South Central JEFF HEGLAND - Saskatoon/North Battleford DALE MURDOCH - West Central/Kindersley JASON SELINGER - Qu’Appelle/Weyburn DOUG JENSEN - Melville/Raymore MORLEY FORSYTH - SW Saskatchewan STAN HALL - Davidson/Strasbourg/Humboldt MURRAY MURDOCH - West Central Saskatchewan DARRELL HERAUF - Dairy/Poultry MORWENNA SUTTER - Melfort/Wadena MARK FORSYTH - SW Saskatchewan
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