COM 0118.019 2002-2004 - Laserfiche WebLink

Home

Discussion of Gross Revenue Production Per Acre of Pasture Back rg ound The ranching business in Hawaii has over the past decade shifted predominantly to a cow-calf operation producing weaned calves that are shipped to the mainland. The basic annual gross revenue stream for the average rancher is the sales revenue from those shipped calves. There are many highly variable factors which influence that revenue stream. A few of the more significant variables include: 1. Carr~g_CaUacity of the Pasture Land The best of un-irrigated pasture can support one animal unit per year on less than 2.5 acres (i.e. "Good" pasture). "Average" pasture can support one animal unit on 2.5 to 10 acres and in sparse, seasonal, or otherwise "poor" pasture land, it can take from 10 to over 30 acres to support one animal unit on an annual basis. 2. Weather/Feed Conditions Along with market price, this is the biggest variable which impacts the rancher's gross revenue stream. For example, weather and feed conditions impact: (a) Calving rates (or "Calf Crop")- A well managed cow herd on excellent feed conditions might approach a 90% calf crop while a cow herd suffering from poor feed conditions and related stress, particularly if for a prolonged period, can experience a drop in calf crop to below 60%. (b) Weaning/shipping/marketabletyeight of calves - Calves weaned off well nourished cows on good feed can average over 450# while calves during drought periods off of poorer condition cows can drop to under 275#. 3. Market price/sales revenue per calf In the past seven years, we have seen huge swings in the sales value of a weaned 8-month old) calf in Hawaii ranging from a high of over 80¢ per pound to a low under 30¢. The cattle market is typically cyclical and the variations are an expected part of the business. 1M amdmex 1 hMV d~enixann ic.'enne Pei ea~c doa