Precision Feeding of Feedlot Calves Based on Phenotypic Production Profiles II. The Economic Value in a Feedlot Model

Incoming feeder calf production potential can be predicted based on phenotypic appearance, and nutrient supply can be optimized to match each animal's specific production profile. Tailoring the supply, quality, and quantity of nutrients to the requirements for maximum profit could further support the economic pillar of sustainable livestock farming. Feeder calves (n = 104) were categorized into the production profiles (PP 1; PP 2; PP 3). Within each PP category, the allocated pens were subsequently randomized into three diets (high-, medium-, and low-production diets). Economic important traits were measured, and a deterministic model was created to evaluate economic implications. There was a significant interaction between the incoming feeder calf production profile and diet on the profit margin, with the PP 2 calves being most profitable when fed on the medium-production diet (profit margin = 4.81%). This was in stark contrast of the profit made by PP 2 calves fed on the low- or high-production diets (profit margin = 0.21% and -2.97%, respectively). PP 3 calves made a loss on all diets; however, this loss was reduced by 14% when fed on the low- compared to the medium-production diet (profit margin = -1.45% and -1.68%, respectively). PP 1 calves were profitable on all three diets although the margin was highest on the medium-production diet. In conclusion, the medium-production diet, representing the current industry norm in South Africa, is financially suitable for feeding calves with average production potential (PP 2), whereas the loss made by calves with low production potential (PP 3) can be reduced by adjusting the feed formulation for low production. More work is required to formulate diets that will maximize the profit made by calves with above average production potential (PP 1).