Calf Genetics & Management Still Matter
By Randy L. Stanko, Ph.D. | Texas A&M University-Kingsville
The national beef herd is the
smallest it has been in most
our lifetimes, and beef consumption
and exports have
supported the highest prices paid
for all classes of cattle. In spite of
these facts, beef calf buyers can still
apply discounts to feeder calves
even when calf supplies are declining.
A recent Arkansas study (Gadberry
and Troxel, 2013) evaluated
the price received for feeder calves
sold in 2000 (62,058 head), 2005
(43,286 head) and 2010 (32,550 head) based upon phenotype
influence as associated with both genetics and management.
Data were collected at 10 weekly sale barn locations
across the state. During this 10-year period, the U.S. calf
crop has declined approximately 293,000 head per year.
Steer and bull calves received the greatest premium in
2010 (8¢ and 1¢ per pound, respectively) and heifer calves
the greatest discount in 2010 (-5.8¢ per pound). Surprisingly,
muscle score premiums and discounts were greatest
in 2005, intermediate in 2010 and lowest in 2000. Heavy
muscled calves (#1s) were always worth $7.00 to $8.00
more per hundredweight than lighter muscled calves (#2s).
The percentage of large-framed calves moderated some (66
percent vs. 60 percent) from 2005 to 2010, but received
the greatest premium in 2010 as compared to 2005 and
2000, although it was very small (less than 1¢ per pound).
Black-hided calves continue to increase in the market, 69
percent more in 2010 vs. 2000, whereas red and red, whiteface
calves have decreased over the 10-year period. Calves
that were spotted and striped received the greatest discount
(-$14.58 per hundredweight) in 2010 as compared to 2005
or 2000. The percentage of horned calves has declined
over the last 10 years, but the greatest discount for horned
calves was seen in 2010 and was approaching a nickel per
pound. These results indicate that calf buyer discounts don’t
decrease among genetically selectable calf phenotypic traits,
even when calf supplies are lower.
The condition in which we send our calves to market also
appears to be more important as calves in very thin condition
were discounted the greatest in 2010 – nearly $9.00 per
hundredweight. The discount received for full and tanked
calves and the discount for fat calves remained similar
between years 2005 and 2010. Calf buyers simply do not
prefer calves in these conditions. This is mainly because
these types of calves will shrink the most (up to 10 percent)
during transport and processing as they make their way into
the next segment of the beef industry. Whether they will be
turned out on grass or wheat, or placed in a backgrounding
facility, they all will shrink and calf buyers discounted these
types of calves up to $17.87 per hundredweight in this study.
The best information reported, in my opinion, was that greater
than 95 percent of the calves evaluated were identified
as healthy, and the discount received for sick or un-thrifty
calves did not change over the 10-year period. Preconditioned
calves received a greater premium in 2010 than 2005
– $6.84 vs. $4.68 per hundredweight, though to some this
may not be a sufficient premium to warrant preconditioning.
One can rather quickly spend $34 per head when feeding,
de-worming, vaccinating and babysitting a set of five-weight
steer calves. One should always do some homework and
work with the local auction market to determine if a preconditioning
program will add value. Let the market know ahead
of time so they can identify and solicit potential buyers prior
to sale day. Preconditioning may not be a sound economic
decision; this is especially true for those of us not able to sell
in truck load lots. Additionally, the information in the Arkansas
report is for comparison only. Results may vary according
to your state and regional cattle markets. The bottom line
is that good cattle, quality genetics and sound management,
will sell for the most money in any market situation. Please
pray for rain!