Instructions
Design and build facilities that will be used in the daily operation. A custom feedlot typically has a number of pens so that the cattle can be separated by producer. The pens should be set up for good drainage and easy cleaning with windbreaks for the animals. Build feed bunks that can be accessed by a feed truck to reduce labor costs. The feedlot also needs to have office space, weigh scales, feed storage facilities and cattle handling facilities including squeezes, chutes and pens for administering drugs, ear tagging and performing other health-related tasks.
Hire trained staff to run the feedlot. Depending on the size of the custom feedlot, a number of administrative staff, animal-health technicians, pen riders, feed and maintenance workers may need to be hired if there is too much available work to consolidate positions.
Establish a method of maintaining records. Keep detailed health and growth records for incoming and outgoing cattle to help determine feed performance, average weight gain, and health issues. Some ranchers will use the data collected to help make breeding decisions. A variety of feedlot-tracking software is available for purchase by various software companies.
Set up a program to market the cattle that are fed at the feedlot. Many custom feedlots offer their customers marketing services for cross-border, overseas and domestic markets that the individual producer may not have easy access to.
Attain business licenses and any other paperwork required by the municipality to conduct business. Purchase insurance that will cover the feedlot for general liability or cattle mortality in the case of fires, floods, tornadoes and other natural disasters. Establish a bookkeeping system to keep track the feedlot's income and expenses and other accounting requirements such as taxes. Connect with contractors who can supply feed, health services and supplies and other services that the feedlot will require on a regular basis.
How to Start a Custom Feedlot
Feedlots are cost-effective because they feed a large number of animals a high volume of feed that produces higher weight gain in a much shorter period of time than most producers can generate in their own operation. When a potential customer considers what feedlot to utilize, a number of factors are considered including weight-gain efficiency and cost, animal health and wellness, the marketing opportunities and support available to them. Having the infrastructure and resources in place can help get a new custom feedlot off to a good start.