76 BULLETIN NO. 58. 



WHERE DOES THE PROFIT COME FROM? 



In Bulletin 48 it is stated that the profit in feeding the steers 

 we have handled has been due to the difference between the buy- 

 ing and -selling price of the steers, rather than to any profit made 

 on the increase put upon the animals while feeding. 



The above table, No. 4, which gives the cost price of the 

 steers, the selling price, and cost per pound of gain for six years, 

 from 1900 to 1905, inclusive, fully illustrates this point. In only 

 two instances was the cost of the gain less than the selling price of 

 the steers, namely: For lot I, in 1901, and for lot I in 1902. Yet 

 in every year, except for 1903 and 1904, there was a profit over mar~ 

 ket prices made on the steers, and in 1903 the loss was very little, 

 namely, $6.00 on the car lot or 25 cents, on each steer. In 1904 

 the loss was greater. A pertinent question is, what is the least dif- 

 ference between the buying and selling price that will afford a safe 

 margin when feeding for profit? In 1903 the steers practically paid 

 for their feed. The difference between the buying and selling 

 price was 35 cents per hundred. In 1904 the difference between the 

 buying and selling price was only 36 cents per hundred pounds, 

 and the loss on the car load was $40.51, or $1.26 per steer. In 

 1900 the difference between the buying and selling price was 78 

 cents per hundred pounds and the profit on the car load was $77.93, 

 or on each steer $4.87. In 1901 the difference between the buying 

 and selling price was 95 cents and the profit on the car load was 

 $122.59 an d for each steer $3.95. In 1902 the difference between the 

 buying and selling price was $1.17 per hundred pounds and the 

 profit on the car load was $168.68 or $7.66 for each steer. In 1905 

 the difference between the buying and the selling price was 92: 

 cents per hundred pounds, and the profit on the car load was $99.55, 

 or for each steer $4.15. 



While we cannot neglect the commercial factor of buying and 

 selling in considering the profit in feeding steers, yet the cost of 

 the ration may mean very much on the financial returns. In 1900 

 the difference in the cost of 100 pounds of gain, between the 

 cheapest and most expensive ration, was $1.28. In 1901 the differ- 

 ence was 46 cents per hundred pounds. In 1902 it was $1.80 per 

 hundred pounds. In 1903 it was $1.97 per hundred pounds and in 

 1904 the difference was 87 cents per hundred pounds, and in 1905 

 the difference was $2.80 per hundred pounds. 



Jf we estimate that the steers gained 200 pounds each during* 



