Boleman, Larry L.

English

Texas A&M University

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Texas Agricultural Extension
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MANAGEMENT TIPS FOR
BETTER FEEDER CATTLE PRICES
Larry L. Soleman*
Cow-calf producers can control some of the price
variation received for calves at auction markets by
following good, sound market-management practices.
Cattlemen cannot influence or reshape supply and
demand market prices, but management expertise in
breeding programs, calf crop management and mar-
keting strategy can affect the price received over and
above normal sale averages.
Prices received for similar cattle can vary greatly
over extended periods of time while price relation-
ships between premiums and discounts remain con-
stant. Successful producers manage away discounts
and develop total management programs to insure
premiums for their calf crop.
Breeding Herd Management
A cow-calf producer begins to affect the eventual
market value of a calf simply by selecting cattle type,
breed and calving season. Once the bull is placed with
the cow herd, the breeding, calving and marketing
season are defined and marketable 7-month old
offspring should be available in 16 to 19 months.
Market acceptance is important when choosing
breeds. The production of additional weight is point-
less if poor market acceptance or desirability, in the
form of price discounts, results in reduced total
income. Prices received for cattle based upon breed,
breed combinations or type are not always logical.
Some price discounts may be unwarranted, but the
beef industry is traditionally highly conservative and
slow to adopt needed changes. Breeds and mating
programs should be considered carefully because
short-term market preferences may be rapid and
severe and breeding programs cannot be changed so
quickly.
*Extension beef cattle specialist, The Texas A&M University
System.
Calving Season
Calving season and length of breeding season de-
termines when to sell a 7-month-old-calf. These sea-
sons also determine the cost associated with produc-
tion of the calf. In Texas, there are basically two
calving seasons - fall and spring. It generally costs $40
to $75 less per calf to produce a calf born in the spring
season (January through March). Spring calves will
wean about 25 to 50 pounds heavier than fall calves.
Although these calves are heavier and produced more
economically, they do not sell on the highest market.
Spring calves are generally sold at 7 months of age in
July, August or September. This market is $5 to $10
per cwt lower than the spring market for fall-born
calves.
In most areas, the spring market (February through
April) offers the year's best prices because the
demand for calves to finish winter grazing or to start
early summer grass is usually strong. To sell in spring
markets, cows should calve in the fall (Septembe~
through November) or the producers should hold late
spring or summer calves over on winter pasture. Fall
calves cost slightly more per head to produce and
weigh slightly less than spring-born calves unless
winter pastures are provided.
Breed, Type, Condition, Weight and Sex
Stocker and feeder calf buyers use their knowledge
and experience to determine which calves will ulti-
mately excel in feed efficiency, average daily gain and
quality and cutability grades (USDA Choice No.2).
Visual evaluation of breed, type, condition, weight and
sex help determine the economic outcome of the calf.
Frame. Feeder cattle are divided into three frame
scores: USDA Small (S), Medium (M), or Large (L).
Research indicates large- and medium-framed cattle
Texas Agricultural Extension Service. Zerle L. Carpenter, Director. The Texas A&M University System. College Station, Texas
outperform small-framed cattle. At market, small-
framed cattle generally suffe'r a $4 to $8 per cwt reduc-
tion in price.
Muscling. The USDA's feeder cattle muscle
scores are USDA No.1, 2, and 3 or slightly thick, thin
and very thin. Number 1's receive $0.50 to $2.00 per
cwt more than 2's and the No. 3's are discounted $8 to
$12 per cwt.
Condition. Cattle ranging from thin to medium
flesh receive little variation in price, but very thin or fat
cattle may be discounted up to $10 per cwt. Fat feed-
ers are discounted because of the expected poor effi-
ciency of gain and thin feeders because of possible
health problems.
Breed Effects. Recognizable breeds and crosses
with trait characteristics reflecting differences in per-
formance such as maturity, frame size, muscling,
condition and ultimate USDA grading standards
generally follow, pricing patterns similar to those
described. At one time crossbreeds were discounted
as compared to straightbreds. This situation has
almost completely reversed with the highest prices
now being received for desirable crossbreeds con-
taining traditional, exotic and Brahman breeding and
combinations common to a particular market area.
Cattle with a high percentage of dairy breeding, ex-
tremes of any kind and most straightbreds, unless
purchased for specialized markets, are penalized.
Regional preferences can be highly variable, but favor-
able prices for any cattle type can be obtained if con-
sistent, adequate numbers are made available.
Sex and Weight. Heifers weighing 400 to 500
pounds usually bring $7 to $10 per cwt less than
steers. Bulls are discounted in almost direct relation-
ship to weight, against steers. This can range from less
than $3 per cwtfor bulls under 400 pounds to over $10
per cwt for over 800 pounds. Under usual marketing
conditions, weight ranges affect the price per pound.
Among medium-framed, No. 1 steers, for every 100
pounds of increased weight there is an average reduc-
tion of $5 per ·cwt, or a 7 to 8 percent drop. Another
way to evaluate this is for every 100-pound weight
increase, there is an increase of $30 to $40 total value
per head.
Successful breeding herd management is aimed at
high quality, seasonally available, growthy, high-per-
forming, carcass-desirable cattle. Increased weight is
justified if it can be accomplished for less than $.45 to
$.50 per pound. This should be possible on the ranch
because fixed cost are present regardless of weight
produced. If producing more weight requires too
much increased cost or reduced reproductive per-
formance, then the extra weight isn't worth it.
The most severe price discounts are for extremes
of condition, weight, sex, breed, etc. The logical
means of increasing weight is to make genetic selec-
tions for individuals which are capable of reproducing
and producing extra weight efficiently under the
producer's production conditions.
Calf Crop Management
Producers must first produce top-quality, market-
acceptable calves, then care must be taken to manage
away any possible discounts to insure top prices.
Buyers look for well-managed, healthy, thrifty cattle
that have been dehorned, castrated, vaccinated and
branded. Prudent producers do all that is cost-effec-
tive in calf crop management to reduce discounts and
sustain premium prices.
Health and Thriftiness
The calf's health is the most important factor to
buyers. Discounts for sick cattle can be as high as $25
per cwt. Specific vaccinations are necessary to reduce
morbidity and mortality. A preconditioning program
consists 'of several vaccinations and a feeding
program that generally will not pay unless the pro-
ducer works through a program that will reward him
for the added expense.
Thriftiness and bloom are important. Discounts
range from $2.75 to $7.50 per cwt for listless, unthrifty
calves. To maintain thriftiness and bloom, calves
should be sold when they peak. "Peaking" is when
calves have made all the growth they can from milk
and pasture. A higher plane of nutrition is necessary
to continue gaining. It generally pays to sell a calf off
the cow because calves lose their bloom and attract-
iveness to buyers if they are held for a week or two
after weaning. Calves must be fed 60 to 90 days to
regain their bloom.
Dehorning
The discount for horns on calves is minimal but it
increases severely for yearlings. In the feedlot, horn
cattle require more bunk space, prevent other cattle
from feeding properly and may cause bruises that
lower carcass values. Dehorned cattle look more uni-
form, feed better and bring a higher market price.
Dehorn cattle as soon as possible. The operation is
easier to do and less severe on calves. Methods and
devices used to dehorn calves include dehorning
liquid, dehorning paste, electronic dehorner, tube de-
horner, spoon dehorner and dehorning saw.
Castration
Producers should castrate bull calves because,
depending on weight, steers are worth from $2.75 to
$10 more per cwt. Although bulls are competitive with
steers in feedlot and carcass performance, the mar-
ketplace does not reward this performance and dis-
counts bull calves as they get older and heavier to
allow for weight shrink and possible death loss from
castrating. Castrate calves as early as possible, pre-
ferably before they are eight months old to minimize
risk and prevent a staggy appearance which results in
a lower price. Removal of the scrotal sack and testi-
cles is the best method to insure castration and leave
little question the animal is indeed a steer.
Official U.S. Standards for Grades of Thrifty Feeder Cattle
Frame Size
Large
Medium
Small
Thickness
No.1
No.2
No.3
Implants
When nursing calves are castrated they should be
given a growth implant. Studies indicate growth stim-
ulants implanted in nursing steer calves increase
weight gains 10 to 20 percent and increase actual
value per head $10 to $20.
Branding
Brands are a permanent form of identification
which should be registered to provide proof of owner-
ship. The brand provides a trademark and label of the
origin herd of the calf. A good brand on good calves is
the owner's best advertisement. Calves are usually
branded before weaning time. The hot iron branding
method is the most common, but electrical branding
irons are becoming popular. The use of branding li-
quids is discouraged because of blurred brands and
wounds that are difficult to heal.
Creepfeeding
Creepfeeding is designed to add weight to nursing
calves under pasture situations. In thrifty cattle, under
optimal management systems, the cost is too high to
put on the additional gain because the producer loses
money even though the calves gain additional weight.
Stress on cows and calves caused by drought,
extreme temperatures or other adverse environmen-
tal conditions reduce performance. Under these
conditions, creepfeeding could be advantageous.
Occasionally, producers over-fatten calves with
additional protein and energy from creepfeed. These
calves may be discounted $5 to $9 per cwt even
though the calf's weight increased. Severely thin cattle
are discounted by the same amount. Creepfeeding
thin calves increases weight and condition which
increases market value.
Fill
A small amount of fill variation is tolerated by order
buyers, but extremes are discounted. Cattle fill is
classified as gaunt, shrunk, average, full, tanked or
over-filled. Gaunt or severely shrunken cattle are dis-
counted up to $8 per cwt, whil~ tanked or over-filled
cattle may be discounted up to $12 per cwt. Within the
shrunk-average-full range, discounts average less
than $1.50 per cwt.
Group Size and Uniform Weight
Buyers prefer feeders bred alike, managed alike and
sold in groups of 20 to 40 head. Singles bring $3.50 to
$4.50 per cwt less than larger groups. Groups of 2 to 5
head bring $2to $2.50per cwt less. Uniform weights of
group-marketed cattle are not as important as once
believed and with the exception of extreme variations
(150 pounds or over), no discounts are generally
noticed. Sorting cattle into smaller groups with
narrow weight ranges is not necessarily helpful. In
fact, group size premiums of $3 to $4 per cwt are so
prevalent, producers should not sort for uniform
weight if it breaks a large group of feeders into small
lots.
Market Strategy
Successful producers study market opportunities
and develop a market strategy months or weeks in
advance. Producers should study market timing, the
cattle market and market trends. They need to guard
against market discounts from calves stressed by
loading and hauling on the sale day.
Auction Markets
Markets differ in appearance, facilities, number of
cattle handled, types of buyers that attend, etc. Some
markets may sell larger numbers of certain types of
cattle such as stock cows, baby calves or crossbreds
of a specific type. Prices may vary from one market to
another on certain classes of cattle due to the hauling
distances. Producers should alert the market mana-
ger in advance if cattle being sold are out of the
ordinary. This gives the manager the opportunity to
prepare for the cattle and contact potential buyers.
Market Trends
Producers should stay informed by reading or
listening to market reports on a regular basis. A good
market manager encourages his customers to call him
regularly for price trends. Good cattlemen check
prices of yearlings and fat cattle because they reflect
what calves will bring now and in the future.
Weather Conditions
Adverse weather conditions. can change the value
of calves substantially. Cattle numbers moving to
market can be severely cut because of prolonged
snow, ice or rainfall. This increases prices in other
regions. Drought is another variable price factor
which causes too many cattle to be marketed during a
short time span. Some weather conditions may block
transportation to final destinations which depresses
prices at local markets.
Good facilities are a must to take advantage of
weather-related marketing conditions. Have corrals
built with good drainage, keep cattle out of the mud
and maintain good, hard-surfaced roads so trucks can
get to cattle.
Day of Sale
Producers should wean calves, move them directly
to sales and avoid letting calves stand in the hot sun
for long periods. The overall health, thriftiness and
bloom of a calf is severely reduced when he is rained
on, covered with mud and drained of energy. Keep
calves calm and provide dry pens or solid pastures to
hold cattle until loading. Load calves with as little
excitement as possible. Do not crowd too many
calves onto a single truck or trailer and be sure they
have solid footing.
There is no way to guarantee your cattle will always
top the market, but with proper market-management
procedures, discounts can be prevented. Increase
your cattle's selling value by utilizing a market strategy
and using good common sense.
ASl
Educational programs conducted by the Texas Agricultural Extension Service serve people of all ages regardless of socioeconomic level,
race, color, sex, religion, handicap or national origin.
Issued in furtherance of Cooperative Extension Work in Agriculture and Home Economics, Acts of Congress of May 8, 1914, as amended, and
June 30, 1914, in cooperation with the United States Department of Agriculture. Zerle L. Carpenter, Director, Texas Agricultural Extension
Service, The Texas A&M University System.
10M-2-86, New


Management Tips for Better Feeder Cattle Prices.

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Management Tips for Better Feeder Cattle Prices.

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