Consumption is also normally higher on thin cattle than on fleshy cattle. However, on medium plus to fleshy calves the cost of gain can easily cost 3-4 cents per pound of gain more. Most of the factors that affect profitability in cattle feeding can be assessed and to some degree protected with a well-designed risk management program. The wild card remains the weather. Cattle gains will be optimal when the weather is mild and dry.
Cattle can tolerate cold weather if they can stay dry and have dry lay down areas.
Muddy conditions affect performance in many ways including increased health issues, appetite reduction and increased energy demands due to cattle having to wade through the mud to get to feed and water. Obviously, the weather cannot be predicted or controlled. However, a good feedlot manager can take actions that minimize the effects that weather have on the cost of gain. Economics of Cattle Feeding and Getting Started as An Investor Feeding cattle as an investment is generally thought of as a risky venture. The cattle markets are cyclical just like the stock market and there is a possibility of making or losing money each time a pen is put on feed.