API coverage of the 2010 BIF Research Symposium & Annual
Meeting
For more information contact: Shauna Hermel, Angus Productions Inc. editor, at 816-383-5200 or shermel@angusjournal.com
Adding Value to a Weaned
Calf Marketing System
by Barb Baylor Anderson
COLUMBIA,
Mo. (June 29, 2010) — Can beef producers make a
program for preconditioned calves pay?
Mike John with MFA Inc. and John
Ranch Inc. says that depends on a number of factors. As director of Health
Track Operations for MFA in Huntsville, Mo., John has run nearly 400,000 calves
through the program, as well as the calves on his own farm, to gauge
profitability.
“The
factors I have come to understand in terms of profitability both on our own
operation and through the MFA Health Track program are season, genetics,
critical mass, health, condition, shrink and capturing any marketing program
premiums,” says John.
Producers
can benefit from the timing of sales. John observes that the best time to market
an 850-lb. steer in the Midwest is mid-August, barring any exceptional corn
price fluctuation. Since feed costs trend lower through summer and often
through harvest, the ability to profit from added weight on spring-born calves
should be significant.
Genetics
is another important factor. “Calves that are bred to perform well in feedlots
will also do well in preconditioning programs. Crossbreeding with bulls that
have some frame, muscle, feed efficiency and weaning growth accuracies should
pay off in such a program,” he says. “The more consistent the group of calves,
the easier they are to feed. Genetic similarity and a 60-day calving period are
worthwhile goals.”
Having a
truckload of calves to sell increases efficiency and can bring higher prices. But
the average herd size is less than 40 head, so producers tend to ignore the
value of critical mass. John says tighter calving periods, combining loads with
other producers and preconditioning programs that allow pooling are possible
options to capture more value.
“Health
is extremely important in a preconditioning program. Health Track records of
calves that get sick during the 45-day preconditioning period show morbidity
ranges from 0.35% to nearly 5%, based more on when vaccinations are given than
on what brand. Using MLV 4-5-way preweaning as a
first round provides the absolute best protection,” he says. “Adequate
nutrition also plays a key role in developing immunity.”
As for
condition, John says the market seeks medium-fleshed calves that have frame and
muscle and will perform well and stay healthy. Maximizing weight gain into the
appropriate season’s market without getting too fleshy is the best advice, he
adds.
“Preconditioned
calves also shrink less than bawling calves,” he says. “If you do the math, 5%
shrink on a 500-lb. calf is 25 pounds. At $1.25 per pound, that’s $31.25. If
you can save that much shrink, you can save that much
money per head.”
Finally,
John says you may have access to market premiums, but there are no guarantees
you will get them. “There is a cost to value-added programs. You must determine
if you have a chance in your marketing scheme to capture enough premium to pay it,” he says.
John
spoke as part of a producer panel during the first general session of the 2010
Beef Improvement Federation (BIF) symposium. Themed "Gateway to
Profit," the 42nd annual research symposium and annual meeting was hosted
by BIF June 28-July 1 in Columbia, Mo.
Editor’s Note:
This summary was written under contract or by staff of Angus Productions Inc.
(API). To request reprint rights contact Shauna Rose Hermel, editor, at 816-383-5270. PowerPoints are posted with permission of the presenter and
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presenter.