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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).
Therefore, a $1-per-hundredweight increase in the expected selling price of a finished steer would cause a buyer to bid $2.40 per hundredweight more for a 500-pound feeder calf or $1.60 more for a 750-pound steer.The cost of finishing the calf will also affect the price of the feeder.ach $1 change in the cost of gain will raise or lower the price finishers can pay by $1.40 for a 500-pound calf and $0.64 for a 750-pound feeder. Table 2 shows the break-even purchase prices that could be paid for a 550-pound steer given alternative fed-cattle prices and cost of gain.