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Excerpts from the report: Record feed grain production in 1967 and the large number of animals available for feeding point to another year of large, red meat supplies and potential downward pressure on prices of slaughter livestock. When feed grain supplies are large and prices are relatively low, livestock feeders in the past have tended to extend the normal feeding period and market animals at heavier weights. Such action in 1968 may materially lower their rate of return, as well as cause some industry wide problems. Feed is one of the major costs in livestock feeding. A feeder's profit is determined to a large extent by his ability to convert feed into meat efficiently. The cheapest weight gains usually are made when animals are young and in their fastest stage of growth. Feeding efficiency generally declines as animals mature and gain weight since more energy is required for body maintenance. Consequently, more feed is needed for each pound of gain, and the cost of gain rises. The following data illustrate changes in feed conversion efficiency for livestock from initial feeder weights to normal slaughter finish. Although detailed information on feeding efficiency of livestock kept beyond normal finish is limited, the data available show that efficiency continues to decline as weights increase, often at an accelerated rate.

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