Fluctuating cattle prices drive profitability in cattle finishing industry.
Factors like cattle prices, feeding costs, and animal performance greatly impact the profitability of cattle finishing. Prices of fed and feeder cattle play a big role in profit variability, explaining around 70-80% of it. Overall, cattle prices and feeding costs together explain at least 85% of the changes in profitability. Animal performance, on the other hand, only explains about 5-10% of the profit variability.