Influence of variations in biological and economical parameters on beef production net returns

Net returns were defined as a function of the monetary returns (revenue) generated by the outputs less the monetary costs generated by the variable inputs. Outputs included total weaning weights of steers and heifers, weight of cull cows and weight of open heifers. Inputs included both feed and nonfeed costs. The net returns equation was incorporated as the objective function in a linear programming model. By maximizing the objective function, the breeding system that generated the highest net returns could be identified considering certain resource constraints. Breeding systems included purebred Herefords; small rotational dual purpose (SR), utilizing the breeds Angus, Pinzgauer, Gelbvieh and Tarentaise; large rotational (LR), a three-way rotational cross with the breeds Charolais, Simmental and Maine-Anjou; and Angus-sired terminal (AL) utilizing Angus as the sire breed and LR heifers as the maternal breed. Large rotational generally produced the greatest net returns, followed by SR and either AL or HE, depending on specific resource constraints (limited feed supply or herd size), calving rates, management systems, environment, beef to feed price ratios and purchased or farm-produced (inexpensive) feed utilized. Only under the conditions of a herd size constraint and farm-produced feed did AL exceed SR in net returns. Hereford had larger net returns than LR only when the two breeding systems were evaluated in an environment assumed to be reproductively stressful to LR. Ranking of breeding systems were dependent on specific conditions and indicated that one must consider each resource constraint and environment in which cattle are expected to produce before making breeding system recommendations.