For the life of me I cannot realize anything that may, or may not, befall me remotely. A Day's Ride Charles James Lever British Dictionary definitions for remotely Expand
Step 1. Calculate your average Sell Price per head. In this example we will assume from live averages that you sold out cattle at $720/head (ex GST), as the average exit weight is currently 450kg and they may have sold at $1.60/kg (ex GST) from current website prices (QLD). Step 2. Estimate your Cost of Gain (COG).y using the example above of repurchasing cattle at 250kg, we then know from the average sale weight of 450kg, we can expect a weight gain of 200kg per animal. We then multiply this estimated weight gain by our COG figure from Step 2. Therefore, in this example our real COG would be: $260 ($1.30/kg x 200kg).
If cattle were bought weighing 475 pounds at $160/cwt and expected to sell for $135/cwt when weighing 750 pounds, the value of gain is $0.92/lb. The difference between value of gain and cost of gain is -0.23 and +0.24 for high and low roughage systems, respectively.