Last year producers experienced falling calf prices and input costs that went through the roof. This year calf prices are still expected to be low but for cow-calf operators these difficult times can be seen as an opportunity.
Prior to 2008, the beef industry had seen several years of profitability with weaned calf prices increasing approximately 50 percent from ‘97 to ’05 leading to significantly increased producer revenues. Covering input costs and padding the producer’s pocket is not too hard to do during the good times, but when the economics of production get a little more difficult, producers must market them more effectively in order to avoid or reduce losses.
The first step for many producers is simply applying some basic, time tested management strategies. Begin by using a good bull, preferably one with some EPDs to back him up. Cow-calf producers will want an easy-calving bull with a superior weaning weight EPD. This can be an easy way to add pounds to your calves at weaning and more pounds means more money. If you are considering retained ownership of calves, yearling weight and carcass characteristics become important.
Producers should not forget the value of a breeding soundness exam on your bull prior to the breeding season and preg-checking for the cow herd after breeding. These practices represent some ‘insurance’ against a bunch of open cows you can’t afford to have this year. Also, consider implementing a controlled breeding season of 60-90 days. This one management practice comes with many advantages but in terms of marketing calves, you should find yourself selling a uniform group in terms of size and age. Lastly, calves that are polled or dehorned, castrated and healed and healthy at the time of sale will consistently bring a few dollars per cwt more than calves that are unworked.
For those producers that have mastered the basics, I recommend investigating some of the verified programs out there today to add additional value to your 2009 calf crop.
The last several years have shown some real promise for value-added marketing to put additional income in producers’ pockets. Several studies indicate significant improvements in the health and performance of preconditioned calves and multiple data sets/studies suggest that, while variable from year to year, producers can expect a net return of about $35/hd for preconditioned calves.
I recommend third party verification and a weaning, feeding and marketing plan to help ensure you get your premium. Other verification programs also exist such as source/age verification, natural and organic programs and breed based programs. Many producers may easily qualify for these programs and simply need to provide the documentation and market calves appropriately to capture the premiums.
Find new ways this year to improve your herd management to reduce losses now and boost profits in the years to come.
Darren Loula, DVM, is a large animal veterinarian at Fair Grove Vet Service in Fair Grove, Mo.
