Cow-Calf Corner | May 9, 2022
Grilling Season Approaching
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist
With Mother’s Day behind us, attention now shifts to Memorial Day and the kickoff of summer grilling season. The last year has been characterized by exceptionally strong beef demand that began about a year ago. It appears this demand was driven by post-pandemic pent-up demand combined with surging beef exports. Boxed beef prices have come down from this period of extremely strong demand and adjusted down from a counter-seasonal January peak to current levels, 11.2 percent lower compared to the last week of January. In the last three weeks, Choice boxed beef values have dropped below year ago levels, which were surging higher at this time in 2021 (see figure below). Beef demand is not likely to repeat last year’s levels, but current levels are still relatively high compared to recent years. Comparisons to last year will look weaker for boxed beef and many wholesale cut values but that is not really a valid comparison to judge beef demand in 2022.
There are plenty of reasons to be concerned about beef demand going forward. Beef prices are near record levels and consumers will face tightening discretionary income as cash reserves and savings are depleted along with reduced purchasing power due to inflation. However, all proteins are higher priced and the ratio of retail beef price to retail broiler chicken and pork prices is actually lower now compared to six months ago. Still, we watch for indications that consumers are “trading down” the from the most expensive beef cuts to cheaper value cuts.
Across a range of wholesale beef cuts, there are mixed signals. There are growing indications in the past couple of weeks of some weakness in beef demand. Wholesale ribeye prices have decreased the past four weeks at a time when they are typically increasing seasonally. Conversely, beef tenderloin prices increased strongly ahead of Mother’s Day. Tenderloin prices declined the first week of May and typically drop a bit into the summer as steakhouse traffic slows when folks are outside and doing more grilling. Wholesale brisket prices have adjusted down the past three months from the exceptional levels of the previous year, holding generally steady heading into summer. The increasingly popular beef tri-tip has maintained strong prices so far this year and is increasing seasonally, though nowhere nearly as strong of an increase as this time last year.
A bellwether indicator of summer grilling demand is strip loin prices, which typically and reliably increase seasonally going into summer. So far this year, strip loin prices have increased only modestly and have actually weakened since mid-April. This may indicate some demand weakness and bears watching in the coming weeks. Relative weakness in some chuck product prices may be related to slower growth in export demand. The ground beef market continues very strong due to fundamental demand.
In general, while there are some red flags, there is no broad-based indications of weaker beef demand and consumers trading down from high value beef products. A sunny, warm Memorial Day weekend may provide a better indication of beef demand for the summer.
Benefits of Estrus Synchronization and Artificial Insemination
Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist
There are several benefits of estrus synchronization of beef cows. Regardless of when your calving season occurs, manipulating the reproductive process of your cow herd can result in shorter breeding and calving seasons. Accordingly, more calves born earlier in the calving season result in an older, heavier, more uniform calf crop when you wean. Shortened calving seasons permit improvements in herd health and management such as timing of vaccinations and practices that add to calf value with less labor requirements (or at the very least concentrating labor efforts into a shorter time frame). Cows that are closer to the same stage of gestation can also be fed and grouped accordingly which facilitates a higher level of management.
Estrus synchronization can be used for natural mating or breeding by Artificial Insemination (AI). Synchronization protocols permit us to concentrate the labor needed for heat detection to a few days, and in some cases eliminate the need for heat detection when cows can be bred on a timed basis.
Use of AI permits us to get more cows bred to genetically superior sires for traits of economic importance to our operation’s production and marketing goals. Synchronization at the onset of breeding season, results in more cows having heats in the first 18 – 25 days of breeding season. Female’s return heats will remain synchronized to a degree, which gives a second chance to AI each female in the early part of breeding season. Without any synchronization, herd managers are faced with a 21 days of continual estrus detection and typically only one opportunity for AI in most females.
Bottomline: estrus synchronization can be an important management tool to get cows settled as early in the breeding season as possible and get cows bred to bulls with highest possible genetic value. A defined breeding season is important to permit meaningful record keeping, timely management and profit potential. Maintaining a 60 to 75 day breeding and calving season can be one of the most important management tools for cow calf producers.
Total Quality Management – A Foundational Approach of the Beef Quality Assurance Program
Bob LeValley, Oklahoma Beef Quality Assurance Coordinator
One aspect of “quality” is providing products that meet or exceed expectations and established requirements. Established product requirements in the beef industry may differ somewhat from one segment of the industry to the next, but there are some common expectations fundamental to each.
The commercial cow/calf operator sells weaned calves, cull cows and bulls. Weaned calves should possess performance, health and potential carcass characteristics that satisfy stocker operators and cattle feeders, while meeting food safety requirements. Culled breeding stock must meet the food safety and carcass characteristic requirement of market cow and market bull processors.
As products of stocker operations, feeder cattle should meet the requirements of cattle feeders for performance, health, potential carcass characteristics and food safety. Fed cattle must meet the expectations of beef processors for health, carcass attributes and food safety. Commodity beef products must meet requirements of beef purveyors for fat cover, marbling, carcass size, safety, and lack of defects such as injection site blemishes, dark cutters, etc. Beef sold to the consumer, must meet expectations for both food safety and eating satisfaction.
The common theme is that quality in the beef industry includes and goes well beyond food safety. Animal performance, health, carcass characteristics and eating satisfaction, are often the result of various and cumulative management decisions, many of which go all the way back to the cow/calf operation.
The Beef Quality Assurance program focuses on many of the “quality” factors that producers will influence in each production segment of the industry. By doing so, it helps to assure consumers that cattle shipped from a beef production unit are healthy, wholesome, and safe. To become a BQA certified producer, complete the on-line certification program at www.BQA.org or contact your OSU Extension educator, or the Oklahoma Beef Council for information on an in-person certification program near you.
OQBN Offering Meetings on Preparing for Pre-weaning Vaccinations
Jeff Robe, Oklahoma Quality Beef Network Coordinator
Spring branding is right around the corner, and now is the time to start planning for calf vaccinations. The Oklahoma Quality Beef Network (OQBN) in conjunction with several Oklahoma State County Extension offices are offering Spring Calf Health Workshops. Some of the topics discussed will include vaccinating for VAC-45 programs, recent research looking at BRD vaccine type and timing of use, vaccine handling, and needle size and selection. Guest speakers from the animal health industry will also be on hand to discuss vaccine products. Programs will also include “Make and Take Vaccine Coolers” and Beef Quality Assurance training. Vaccine coolers are by RSVP only. Please contact your local County Extension Educator for more details about a specific meeting as some content varies.
Meeting Schedule:
May 12th - Pawnee County Spring Calf Health Workshop
Location: Pawnee County Fairgrounds, Women’s Building
Time: 11am-2pm (Lunch provided)
Contact: Rick Clovis (918) 762-2735
May 18th – Comanche/Tilman County Spring Calf Health Workshop
Location: Chattanooga Civic Center, Chattanooga, OK
Time: 11:30AM – 1:30PM (Lunch provided)
Contact: Trevor Vaughn (580) 355-1176 or Aaron Henson (580) 335-2515
May 19th - Kay County Spring Calf Health Workshop
Location: Southern Plains Livestock Market, 606 N. 29th St. Blackwell, OK 74631
Time: 10:30am – 1:30pm (Lunch provided)
Contact: Kay County Extension (580) 362-3194