Feedlot Record Keeping

There is common belief amongst businesspeople that "One can only improve what is measured." Therefore, good (i.e., complete and accurate) record keeping is crucial to the success of any business. During times of high-cost inputs, this is particularly important for feedlot managers. Good records are essential to monitor measures of production and allow for informed management decisions and planning.

Cattle feeders use feedlot close-out information for economic evaluation of pens. However, frequently monitoring feedlot performance and costs as cattle are still being fed not only tells you where the feedlot is currently, but also allowing managers to make fast mid-course corrections as feed costs or cattle prices change. Knowing the current cost of production is essential for making timely marketing decisions and decreasing corn use.

Good records help feedlot managers to answer important questions about the operation's financial health, and effective management will depend on accurate measurement of production and financial variables. This data, compared to appropriate industry averages, helps managers to pinpoint both the strong and weak characteristics of the operations. The use of these comparisons is called "benchmarking." Benchmarking records is important to evaluate the competitiveness of a particular operation, and to allow for the comparison of a feedlot to others in the industry. This allows for management decisions and plans based on good historical data.

Information in today's world is generated quickly. Therefore, it can be challenging to manage the volume of information available in ways that make the information understandable and manageable. However, once collected, information is of little value unless it is used to monitor progress, make decisions, and evaluate alternatives. Feedlot managers should continue to invest in methods of managing information. The manager should also communicate the critical importance of accurate information from various input points in the feedlot.