THE ECONOMICS OF SHRINKAGE

Comparing prices with varying allow-ances for shrink is sometimes neces-sary to determine the best bid for your cattle. The simplest way to do this is with a calculator. For example if a buyer offers you $80/cwt for your 500 lb. steers and wants a 4 % pencil shrink, 35 % to 50 % (St. Clair, 1976) (Self and Gay, 1972) (W. Gordon Kerl, 1987). Shrinkage depends on handling methods, weather, time off feed and other factors. General estimates of expected shrinkage expressed as a function of the distance that cattle are shipped are displayed in Figure 1. Gross shrinkage is the total shrinkage and net shrinkage is that part of the shrinkage which cannot easily and quickly be regained by the animals