Cow-Calf Corner | June 20, 2022
Beef Prices Supported by Other Proteins
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist
The question of beef demand for the remainder of this year is an interesting comparison to exceptionally strong wholesale and retail prices in the second half of 2021. In the first quarter of 2022, retail and wholesale beef prices were sharply higher compared to last year. Retail all-fresh beef prices in May were 9.5 percent higher year over year. However, beef prices rose sharply in the second quarter of 2021 and remained high for the remainder of the year. Retail beef prices reached a record high in October 2021 with an all-fresh price of $7.548/lb. The all-fresh retail price has since decreased slightly to a May 2022 level of $7.374/lb.
Despite higher prices for most all products and record gasoline prices, domestic beef demand appears to be holding quite strong thus far. Wholesale and retail beef prices have moderated slightly from the robust domestic demand and record beef exports in 2021. Most beef wholesale prices are currently below last year’s sharply higher prices. The typical May pre-grilling season boost in beef products was more muted or absent this year, but prices have generally increased in June leading to higher Choice boxed beef prices the past several weeks. Prices for major steak products including tenderloin, ribeye, strip loin and top sirloin are lower compared to last year but do not indicate appreciable demand weakness at this point. Brisket prices are significantly lower year over year and steady in the second quarter, but still high compared to recent years. The increasingly popular sirloin tri-tip has increased sharply the past several weeks and is more than 25 percent above the 2021 average price. The ground beef market has remained consistently strong for the last year with prices for 90 percent lean trimmings holding close to the record high levels achieved one year ago.
Broiler product prices have continued to rise and may be helping to support beef prices. Wholesale chicken breast meat prices rose over 69 percent from the beginning of the year to a peak in late May before pulling back slightly. More recently chicken leg and leg quarter prices have jumped sharply. In contrast, chicken wing prices have decreased to the lowest levels in two years. From 2017-2021, wing prices averaged 1.65 times breast meat prices but in 2022 have averaged about one half of breast meat prices. Retail broiler prices have continued to increase in 2022 in absolute levels and relative to retail beef prices. In May the ratio of retail all-fresh beef price to the retail broiler composite price dropped to the lowest level since early 2019; meaning that broilers are relatively more expensive compared to beef.
Retail pork prices have also risen relative to beef prices with the ratio of retail pork to retail beef prices at the lowest level in a year. Prices are generally higher for all major wholesale pork products including loin, ham, and shoulder products (Boston butt and picnic).
Demand for beef and other proteins will continue to be challenged by higher prices for food, gasoline and everything else. Thus far, however, beef prices indicate continued strong demand. Strong prices for broilers and pork mean that beef continues to be a relative value among proteins.
Managing Heat Stress in Cow-Calf Operations
Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist
Heat stress is caused by a combination of environmental factors including temperature, relative humidity, solar radiation, air movement and precipitation. During the summer we need to assess the heat stress that cattle are under. Cattle on pasture are not as susceptible to heat stress as feedlot cattle because they have the ability to seek shade, water and air movement to cool themselves. In addition, radiant heat from dirt or concrete surface is increased for feedlot cattle. At temperatures above 80 degrees Fahrenheit cattle can endure physiologic stress trying to deal with their heat load. Although cattle at this temperature are not at risk of dying they will have an increased maintenance requirement to cope with the heat.
Compared to other animals, cattle can’t dissipate their heat load very effectively. Cattle do not sweat effectively and rely on respiration to cool themselves. A compounding factor on top of climatic conditions is the fermentation process within the rumen generates additional heat that cattle need to dissipate. Heat production from feed intake peaks 4 to 6 hours after feeding. Since cattle do not dissipate heat effectively they accumulate a heat load during the day and dissipate heat at night when it is cooler. Any time the Temperature-Humidity Index (THI) is above 80 cattle will be under heat stress. Hot weather following precipitation can increase the THI dramatically. Just as importantly, when overnight temperatures are above 70 degrees Fahrenheit cattle will have increased heat stress. During extreme weather conditions with insufficient environmental cooling at night cattle will accumulate heat that they cannot disperse. Therefore, a temperature-humidity index (THI) alone may not predict cattle heat stress because it does not account for accumulated heat load. Another short fall of THI is that it does not account for solar radiation and wind speed which can affect heat load of cattle. During times of increased heat stress cattle should be observed closely to identify if additional strategies need to be implemented. Initially feed intake will drop off and cattle become restless. As heat stress increases cattle will begin to slobber and respiration rates will increase. Eventually, cattle will begin to group together. In severe heat stress cattle will be open mouth breathing with a labored effort.
Actions to Minimize Heat Stress
- In the summer months, cattle should be worked only early in the morning. Working and handling cattle will elevate their body temperature and cattle should not wait in processing areas longer than 30 minutes when it is hot. Do not work cattle in the evening, even if it has cooled off, it is not recommended. Cattle’s core temperature peaks 2 hours after peak environmental temperature. It also takes at least 6 hours for cattle to dissipate their heat load. Therefore, if peak temperature occurred at 4:00 pm cattle will not have recovered from that heat load until after 12:00 am and it will be later than that before cattle have fully recovered from the entire days heat load.
- Provide ample amounts of cool water. The water requirements of cattle increase during heat stress. Cattle lose water from increased respiration and perspiration. Additionally, consumption of water is the quickest method for cattle to reduce their core body temperature. Rule of thumb is that cattle need 3 inches of linear water space per head during the summer. Extra water tanks should be introduced prior to extreme heat events so that cattle become accustomed to them. Multiple cattle need to be able to drink at the same time. Waterers need to be kept clean and cool. Water intake actually decreases when water temperature exceeds 80 degrees Fahrenheit. Ideally water sources should not be exposed directly to the sun.
- Shade is critical, especially for black cattle. To be effective there needs to be 20 to 40 square feet of shade per animal. If using a mechanical shade structure, an east-west orientation will permit the ground under the shade will remain cooler. However, if mud is an issue then a north-south orientation will increase drying as the shade moves across the ground during the day. The height of the shade structure should be greater than 8 feet tall to allow sufficient air movement under the shade.
- Increasing the air flow can help cattle cope with extreme heat events. Wind speed has been shown to be associated with ability of cattle to regulate their heat load. Although we cannot influence wind speed we can ensure that there are no restrictions to air movement such as hay storage, tall vegetation or wind breaks.
- Control flies. Biting flies cause cattle to bunch up which decreases cooling. Minimizing breeding areas for flies and applying insecticides to decrease fly populations prior to heat stress is a valuable management practice.
- The USDA-ARS and NOAA forecasts heat stress that cattlemen can use to make management
decisions.
Reference: Heat Stress In Beef Cattle. Dr. Grant Dewell. ISU Beef Extension Veterinarian. August, 2010.
New Webinar Series Announced about Reducing Cow-Calf Costs
Paul Beck, State Extension Beef Nutrition Specialist
The Oklahoma State University Department of Animal and Food Science beef Extension
team has announced a new webinar series on Reducing Costs in a Cow/Calf Operation.
Experts from OSU and across the region will present on topics ranging from forage
management, deworming protocols, feeding recommendations, and tax strategies. The
series will start on June 23rd at noon with Dave Delaney from the King Ranch Institute
for Ranch Management presenting “Minimizing Cost in a Cow/Calf Enterprise” and the
series will continue every Thursday at noon through August 18th. Be sure to register online
This series is a continuation of the popular Rancher’s Thursday Lunchtime Series.
We have hosted 50 webinars in 11 series with over 2,800 in attendance since May 2020.
Join our Beef Cattle Extension team, experienced ranchers and scientists to learn and share beef cattle production, management and marketing tips.
Please Note: You will need to use the NEW link (provided below and in the flier) to register for this series!
These free webinar session are scheduled for 30-minutes every Thursday at 12:00pm.
The twelfth series is focused on reducing costs in a cow/calf operation.
June 23, 2022 | 12 p.m. Minimizing cost in a cow/calf enterprise - Dave Delaney, King Ranch Institute for Ranch Management
June 30, 2022 | 12 p.m. Meeting vitamin and mineral needs of the cow herd - Jason Banta and David Lalman, Extension Specialists for Beef Cattle
July 7, 2022 | 12 p.m. Managing fescue and bermudagrass pastures to extend fall and winter grazing - Brian Pugh, Northeast Area Agronomy Specialist
July 14, 2022 | 12 p.m. Fall seeding legumes to reduce fertilizer inputs - Mike Trammell, Pottawatomie County Ag Educator | Regional Agronomist
July 21, 2022 | 12 p.m. Should I deworm cows? How do I know? What products? - John Gilliam, Veterinary Clinical Sciences Professor
July 28, 2022 | 12 p.m. Protein sources; what are the options to reduce cost? - Paul Beck, Extension Specialist for Beef Nutrition
August 4, 2022 | 12 p.m. Tax strategies for the cow/calf enterprise - JC Hobbs, Agricultural Economics Extension Specialist
August 11, 2022 | 12 p.m. Controlling brush while increasing revenue with goats - JJ Jones, Ada Area Agricultural Economics Specialist
August 18, 2022 | 12 p.m. Minimizing winter supplement cost - David Lalman, Extension Specialist for Beef Cattle