Help transform nutrition into profit in today’s robust cattle market

LUBBOCK, Texas — Demand for high-quality beef and a tight cattle supply has experts predicting historically high cattle markets for the next several years.

Widespread liquidation, primarily driven by drought, has resulted in the smallest U.S. cowherd since 1962. Tighter supplies of cattle favor strong calf prices at this point in the cattle cycle.

“Progressive cattle producers strive to optimize production efficiency through strategic management and marketing decisions,” said Clay Burson, cattle nutritionist for Purina Animal Nutrition. “These investments can pay dividends now and into the future by providing calves buyers seek.”

Take advantage of the strong cattle markets this year and capture the most value for the calf crop with these three tips.

1. Produce Quality Cattle

Ultimately, the profitability of your calves begins long before you market them. Something as simple as consistently feeding a high-quality mineral throughout the breeding cycle can impact overall performance for your calves.

In a recent study by North Dakota State University, calves gained 36 more pounds by weaning when the dams and calves were consistently fed a high-quality mineral, resulting in more pounds to sell.

“High-value calves start with high-quality, healthy cows,” Burson said. “Cows pass on quality nutrition to calves through fetal programming and continue through their milk supply after calving.”

While it may be tempting during this economy to cut back on input costs, remember the old saying, “You can’t starve the profit out of a cow.” Nutrition is one area where high-return producers don’t cut corners.

As a result of their continued investment in nutrition, along with animal health and genetics, the percentage of calves weaned and pounds of calf weaned per cow exposed favors the high-return producer.

“More calves weaned and more pounds per calf can translate to a significant boost in your bottom line with strong calf prices,” Burson said.

2. Add Value To Your Calves

The excitement of high calf prices can lure you into wanting to sell calves quickly. But as calves approach weaning age, slow down and evaluate the most efficient value of ownership.

Do you want to wean and sell immediately? Wean and take advantage of a 45-day precondition stage? Background calves and market at a heavier weight? Retain ownership through the end?

“Take a hard look at market conditions and the marginal value of weight gain to determine how long you should own your calves and the potential benefits of preconditioning or value-added programs for your calves,” Burson said.

Calf health impacts feedlot performance. According to industry research, calves preconditioned for 45 days before entering the feedlot experience one-third of the morbidity and half of the mortality of non-preconditioned calves.

Preconditioning programs are also designed to reduce losses in weight gain and increase feed efficiency once cattle arrive at their next destination. As a result, buyers are normally willing to pay a premium for preconditioned calves.

Research shows that, conservatively, preconditioning may capture $50 to $75 per head of additional value.

These premiums, on top of already strong calf prices, can potentially provide a good return on investment for your time and money spent on preconditioning.

Purina offers two value-added programs:

• The Purina Wind and Rain Mineral Value-Added Program promotes calves fed Wind and Rain mineral and raised from dams fed Wind and Rain mineral prior to conception through weaning. The high-quality, complete mineral program helps set calves up for optimal health and performance into the next phase.

• The Purina Plus program provides a foundation for optimized performance from research-proven nutrition via starter feeds and calf health strategies, such as dewormers and vaccinations. This program also has the allied support of animal health leaders, like Boehringer Ingelheim, Elanco, Merck, Zinpro and Zoetis.

“Take the extra steps to qualify calves for value-added programs to help ensure you aren’t leaving any additional money on the table,” Burson said.

Value-added programs have shown their ability to generate additional premiums for calves beyond traditional preconditioning programs.

New research shows that by participating in the Purina Wind and Rain Mineral Value-Added Program, cattle producers could see sizable premiums up to $31 per head, Burson said.

“There are several options available, so you can choose the program that best fits your operation,” he said.

“Don’t forget to consider conventional technologies, such as implants and ionophores, and evaluate their potential value compared to the natural programs available.”

To get the most benefit, Burson said, enroll in a program that aligns with your management practices and market to buyers looking for the type of calves you produce.

3. Establish Strong Relationships

Relationships are vital in the cattle industry. Building a relationship with a representative from your local sale barn or video auction team can help ensure your calves are marketed to their full potential, Burson said.

“Their marketing team can help sell the added value from the time and effort you’ve put in,” he said.

Connect with buyers to gather information on how your cattle perform. Share that performance data with potential buyers and use the data to make adjustments that improve the quality and performance of your cattle in the future.

“Reputation cattle are well known. When your cattle consistently do well for buyers, you become a sought-after source for calves,” Burson said. “And when the cattle cycle continues and prices aren’t as strong, that reputation may help you remain profitable.”