Value of Gain vs Cost of Gain: When Extra Pounds Actually Pay
A practical explanation of value of gain, price slide, and why ADG alone cannot tell you if a stocker or retained-ownership plan pencils.
Gain can look good and still lose money
Average daily gain tells you how fast cattle grow. Value of gain tells you how much the market pays for each pound added. Cost of gain tells you what those pounds cost. You need all three.
Price slide is the usual surprise: heavier cattle often sell for fewer dollars per hundredweight. That can make VOG lower than COG even when the scale ticket looks impressive.
How to use the calculators together
Run Value of Gain with your expected buy and sell weights/prices, then compare to Cost of Gain and Break-Even. If margin per pound is negative, change the buy, the sale target, the ration, or don’t place the cattle.
Key takeaways
- •VOG = (sale $ − purchase $) ÷ pounds gained.
- •Compare VOG to COG before bidding stockers.
- •Slide and death loss can erase an otherwise “good” ADG.
Educational planning content only — not veterinary, nutrition, or financial advice.