I. Producer Perspective
This project begins at the auction yard. Starting with the steer.
To buy a steer at the Escalon Livestock Market on Monday,
September 16th of 2019, ranging from 500-600 pounds is on
average 1.95 a pound. That would make the purchasing price
$1,170 for a 600-pound steer.
After purchasing a steer, the next order of business is to feed it.
For feed, we will need 2,500 pounds of grain. At Melvin T.
Wheelers and Sons, located in Modesto, one 50-pound sack of
the Farmers Best Feed-Beef Grower is $13.75. It would take 50
sacks of grain to raise the steer to market weight so that means
that is would cost $687.50 to cover the grain costs for the
steer. The steer will also need to be fed alfalfa hay 3-4 times a
week, which would require 5 bales to get the steer to market
weight. Also, at Melvin T. Wheelers and Sons feed store, a bale
of #2 quality alfalfa hay costs $13.50 making the total cost of
alfalfa for the steer $67.50. The next necessary item to feed
out the steer is grass hay, after doing some searching, I could
not find a price by the ton of grass hay. The quote that I got
was from Bertuccio Hay service in Merced, the price per bale of
grass hay was $11.00 and each bale weighs about 100 pounds.
To get the necessary 6 tons you would need 120 bales at 100
pounds. The total price for grass hay to feed the steer would be
$1,320. Adding all the feed prices, the grain, alfalfa and the
grass hay, come out to $2,075. There is no labor cost for
raising the steer, our time is donated, but there is an overhead
cost of 150 dollars.