Beef Trade Reacts as Expected

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

 

Declining cattle numbers has led to a year over year decrease in beef production and higher wholesale and retail beef prices. Under those market conditions, beef exports are expected to decrease and beef imports should increase…exactly the outcome observed thus far in 2023. The U.S. dollar has remained generally strong against most currencies adding additional headwinds to exports and increasing the import incentives.

 

The October livestock trade data showed that total beef exports were down 20.5 percent year over year, leading to a year-to-date total that is down 14.9 percent compared to the January-October period last year. Total beef imports for October were up 17.4 percent over one year ago, pushing beef imports thus far in 2023 up 7.9 percent.

 

South Korea is the largest beef export market in 2023, with total exports down 17.7 percent for the January – October period compared to last year. Japan is a close second place with total beef exports thus far in 2023 down 21.3 percent year over year. China/Hong Kong is the third largest market, only slightly behind Japan, with year-to-date beef exports down 18.8 percent. Taiwan is the other major Asian market for U.S. beef at the number six place, down 5.5 percent so far in 2023. The Asian markets combined account for 69.2 percent of year-to-date U.S. beef exports. Mexico is the number four beef export destination and is the only major market for U.S. beef with higher exports this year. Beef exports to Mexico are up 13.7 percent year over year. This may reflect general recovery in the market for U.S. beef in Mexico, which has been lower since 2020, and may also be partially due to the Mexican Peso being one of the few currencies that has strengthened to the U.S. dollar recently. Canada is the fifth largest market for U.S. beef with the 2023 total unchanged from last year for the first ten months of 2023. The North American markets (Canada and Mexico) account for 19.0 percent of total beef exports thus far in 2023.

 

Canada is the largest source of beef imports, with year-to-date beef imports up 2.5 percent year over year. Mexico is the number two beef import source, with total imports thus far in 2023 down 10.5 percent from last year. These two North American sources account for 44.3 percent of total imports in 2023. Australia is the third largest beef import origin and is up 52.3 percent for the first ten month of the year. Australia has been down sharply the last two years due to reduced production in the country but has recovered significantly in 2023. New Zealand is the number four beef import source and is up 34.2 percent year over year. Australia and New Zealand combined account for 31.4 percent of total beef imports so far this year. Brazil is the fifth largest source of beef imports and is down 9.6 percent from one year ago. Brazil accounts for 12.6 percent of beef imports and combined with Uruguay and Argentina, makes the South American share of beef imports sum to 19.3 percent of total beef imports this year.

How Do We Improve Percent Calf Crop Weaned?

Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist

 

The percent calf-crop weaned is of paramount economic importance in a cow-calf operation. As a follow up to my most recent topic, this week we address selection, mating and management to improve reproductive efficiency. First, take a look at the following chart. It shows the inverse relationship between heritability and heterosis.

 

From a standpoint of genetics and animal breeding, reproductive traits are low in heritability (typically 10% - 20%), but show high levels of heterosis in response to crossbreeding. From a practical standpoint, this means if we are going to take advantage of heterosis in one part of our commercial cow-calf operation, take advantage of maternal heterosis in your cowherd. The crossbred cow has an advantage in “reproductive fitness.”

 

That being said, when selecting seedstock for a well-designed crossbreeding system, consider genetic values. Genetic change is cumulative and permanent. Selecting bulls with strong EPDs for reproductive traits will result in their daughters having high genetic potential for reproductive efficiency. Yes, these traits are low heritability; however, additive genetic merit pays long-term dividends. Each beef registry publishes a sire summary that includes several EPDs that fall under the “Maternal” heading. Applying selection pressure to EPDs such as Heifer Pregnancy, Maternal Calving Ease and Mature Weight or bio-economic indices like Stayability, Maternal Weaned Calf Value, Baldy Maternal Index or Brahman Influence Index enable you to genetically tailor your cowherd to fit your production environment and thereby maximize reproductive efficiency. This is by no means a complete listing of all the maternal EPDs that could be considered.

 

From a standpoint of management, herd health and proper nutrition are essential to maximize reproductive performance. A good working relationship with your veterinarian enables you to tailor a herd health plan best suited to your production environment and cow herd. When it comes to a proper vaccination program and parasite control an ounce of prevention is worth a pound of cure.

 

Past articles have stressed the importance of nutritional management and the critically important role it plays in reproductive efficiency. Cows and heifers that go into the calving season at a body condition score of 5.5 – 6.0 are optimum. This ensures they have the energy reserves to deal with the spike in nutritional requirements once lactation starts and have timely breed back. Optimum reproductive efficiency is getting ALL our cows to raise a calf to weaning in a 365 day window of time. That means the rebreeding interval needs to stay within 80-85 days of calving. Parasite control, a good vaccination program and proper nutrition all play a vital role in maintaining an optimum rebreeding interval and keeping cows bred.

 

What are the Benefits of Compensatory Gains in the Feedlot Following Grazing?

 

Paul Beck, Department of Animal and Food Sciences

Supplementation programs for stocker cattle on pasture to improve animal performance and overall productivity and profitability of stocker programs is a common management practice. Nevertheless, it is generally perceived that increased weight gains during the stocker/backgrounder phase are negatively related to performance and efficiency during finishing, and therefore can reduce feeder calf sales price. Alternatively, reduced gains during the stocker period is perceived to allow for compensatory gains during finishing, increasing performance and efficiency.

 

A paper coming out in the December edition of the Applied Animal Science journal from the Oklahoma State University Department of Animal and Food Sciences (Adams and others; Applied Animal Science, volume 39, issue 6 December 2023; is adding to our understanding of stocker cattle nutrition programs and its effect on finishing performance. objectives of this research were to evaluate the effects of pre-finishing plane of nutrition of stocker steers on subsequent feedlot performance and carcass characteristics over two years. Crossbred steers (140 head each year) grazed tall fescue/bermudagrass pastures at the OSU Eastern Research Station near Haskell without supplementation on fertilized pastures; supplemented with 2.5 lbs/day of a distiller’s grains cube on fertilized pastures, or were supplemented with 0.75% of BW/day of supplemental distiller’s grains cubes on unfertilized pastures to replace fertilizer and increase performance. Across years, supplemented steers gained more rapidly and were heavier at the end of the grazing season than non-supplemented steers. It was determined that extruded distiller’s grains cubes are a suitable supplement for steers grazing introduced pastures, and higher supplementation rates could effectively replace N fertilization.

 

Steers were followed through the finishing phase in a commercial feedyard (Buffalo Feeders LLC at Buffalo, OK) to evaluate carryover effects on performance. Steers were finished in commercial scale pens with steers from treatments comingled. Steer weights were collected at feedlot entry and reimplanting. Bodyweight at slaughter were based on carcass adjusted bodyweight and was calculated based onas hot carcass weight pen average dressing percentage.

 

Supplementation on pasture increased initial feedlot bodyweight. Although control steers gained faster before re-implanting in both years, control steers only compensated for 40% of the difference in initial bodyweight from high supplement rate steers and had no compensatory gain compared with steers fed the low rate of supplement on fertilized pastures. Steers fed the low rate of supplement on fertilized pastures compensated for 150% of the difference in initial finishing bodyweight from steers fed the high supplement rate on unfertilized pastures. Performance from re-implant to the end of finishing were similar for all treatments. Steer harvest weight did not differ, but non-supplemented controls required more days on feed and more total feed than steers supplemented on pasture. Overall, steers supplemented on pasture consumed less feed and had lower feed costs. Total system net returns were greater for steers supplemented on pasture than controls.

 

Overall, our results implied that extruded DDG cube supplementation during grazing did not negatively affect subsequent feedlot performance and tended to result in higher carcass quality grade. With fewer days on feed in the feedlot positively related to profitability, supplementing extruded DDG cubes may be a beneficial management strategy when implemented during the grazing season to maximize total system profitability. The relatively short period of compensatory gain for FC steers at the beginning of the finishing phase in both years did not elicit overall improved performance in the feedlot.