Profit per animal: calculate what each one earns

Profit per animal is sale income minus purchase price, feed, treatment and other expenses. Bring these four figures together for each animal, then divide the profit by its days on the farm. You can then compare animals of different ages fairly, even when they stayed on the farm for different lengths of time.

Rangpur, Bangladesh: Beef steers at a weighing scale beside a farm ledger.
Beef steers at a weighing scale beside a farm ledger. The scale and ledger provide context for costs and results per animal.

Compiled from open-access scientific sources.

Reference values and basis

Catalog reference values with their stated units
Parameter and basisValue
Sale incomeTotal received for the animal
Purchase costWhat you paid when you bought the animal
Feed costDaily feed cost multiplied by days on the farm
Treatment and other costsOther costs for the animal
Days on the farmDays from purchase or birth to sale
Profit per dayProfit divided by days on the farm

How do you work out profit per animal?

Subtract purchase, feed, treatment and other costs from the animal's sale income. You need four figures: what the animal sold for, what you paid for it, its feed bill, and treatment and other expenses combined. For feed, multiply the group's daily cost per head by the animal's days on the farm. Bring those figures together for each animal and subtract the three costs from the income. You can then see which animals earned their keep and which left little or no profit.

How do you calculate feed cost per animal?

Multiply the ration cost per head per day by the days from arrival to sale. If the ration changed, calculate each period separately and add the costs. For animals fed as a group, divide the group's total feed bill by its total animal-days: the days each animal was fed, added together. Feed is usually the biggest expense. A figure based on actual feeding costs gives you a firmer starting point, and regular notes make the calculation more accurate.

Compare each animal

Work out each animal's income, purchase cost, feed, treatment and other expenses, profit and days on the farm. Compare the results, starting with the animals that earned the most.

Farm-grown feed

Price your own forage at what it would cost to buy, so you can compare results fairly across farms and seasons.

Why compare profit per day?

Profit per day helps you compare animals kept for different lengths of time. A finishing animal sold after 120 days may earn less overall than one sold after 200 days, yet make better use of housing and labour. Compare results over several seasons to see which sale age, purchase weight and time of year work best on your farm.

How can you use the results?

Review profit per animal twice a year. Start with the best earners and look for what they shared: breed, purchase weight, season or buyer. Then check the least profitable animals. Did you pay too much, keep them too long, spend more on treatment or use expensive feed? Use the answers when choosing your next animals and planning their sale. Each season gives you a clearer idea of what pays on your farm.

Questions from the farm

Which costs should I include?

Include purchase price, feed, treatment and every other expense for the animal. Feed is usually the largest cost.

How do I divide group feed costs?

Divide the group's feed bill by its total animal-days, then multiply by each animal's days in the group.

Why use profit per day?

Profit per day lets you fairly compare animals kept for different lengths of time.

Does this work for dairy cows?

Yes. For each period, use milk income per cow instead of income from selling the animal.

How HerdMobile helps

Bring your animals, feed stocks and farm accounts together on your Android phone. HerdMobile keeps your daily work moving offline: record events, compare feed quantities and follow sales and payments in one place. Use your own feeds and herd information to prepare a ration, then keep a backup file under your control.

HerdMobile keeps animal sales, purchase expenses and your farm's income and spending together on your phone, so you can find the figures you need to calculate profit. It also shows ration cost per head per day, helping you include feed when comparing what each animal earned.

See how many kilos of each feed to give
Keep the day’s work in view: open your animal records, plan feeding, follow farm accounts and manage your backup in HerdMobile.
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Sources

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