Factors Affecting Slaughter Cow Values

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

 

As of mid-September, cull cow prices at Oklahoma auctions are an average of 33.1 percent higher year over year across all grades and dressing percentages.  Higher slaughter cow prices are the result of strong lean beef markets and the related growth in breeding demand for cows.  

 

Beef cow slaughter increased annually from 2015 – 2022 and, after rising sharply the past two years to the highest level since 1996, is declining year over year in 2023.  Beef cow slaughter is falling more sharply in the second half of this year and may end the year down in the range of 15-17 percent from year earlier levels.  The declining supply of lean beef is driving higher processing beef prices.  The current price of 90 percent lean beef is 17.3 percent higher year over year.  

 

With fall culling decisions approaching, producers should be aware of factors affecting cull cow value and consider opportunities to increase cull value.  Table 1 shows the average percent difference in price of slaughter cows compared to a base of average dressing, Boner cows.  The price of average dressing Boner cows in mid-September is $108.38/cwt. which means that the prices would be expected to vary from a high of $120.74/cwt. for high dressing Breaker cows to a low of $91.80/cwt. for low dressing Lean cows.  

 

Table 1. Impact of Grade and Dressing Percentage on Slaughter Cow Value.

 

 

Slaughter cow grade is a function of age, weight, and condition of cows.  The Agricultural Marketing Service (USDA-AMS) uses the following guidelines to grade slaughter cows:

• Breaker: Slaughter cows expected to yield carcasses in the range of 75-80% lean. Typically, a cow with more than .35 inch of backfat at the 12th rib.
• Boner: Slaughter cows expected to yield carcasses in the range of 80-85% lean. Typically, a cow with between .15-.35 inches of backfat at the 12th rib.
• Lean: Slaughter cows expected to yield carcasses in the range of 85+% lean. Typically, a cow with less than .15 inch of backfat at the 12th rib.
   

As a rough guide, cows will be about 100 pounds heavier for increases in each grade from Lean to Boner to Breaker. Each grade increase is roughly equivalent to an increase of one body condition score.  Additionally, the live weight of cows will change by roughly 25-30 pounds above and below the weight of average dressing cows for high and low dressing cows.  Producers can often impact the value of cull cows by managing the weight and condition of cows before marketing. 

 

Cull cows have the most pronounced seasonal price pattern of any class of cattle ranging from highs in June and July to lows in November and December (Figure 1).   Cull cows that are thin (Lean, low dressing) in the fall and are retained and fed until spring may sell as Boner cows at average dressing by March with an increase in value of $400-$600/head due to added weight, grade, and condition. Of course, the feasibility of holding cull cows depends on time and management considerations and the availability of surplus feed.

 

Figure 1. Seasonal Price Index - Slaughter Cows

 

Going forward, many culled cows will likely be screened for the possibility of producing another calf and selling later for slaughter value.  Leaving the cull cows with a bull while adding weight after weaning may produce another increment of added value if she can be sold as a bred cow next spring at seasonally high bred cow prices.  

 

 

Oklahoma Quality Beef Network

Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist and Paul Vining, OQBN Coordinator

 

The Oklahoma Quality Beef Network (OQBN) is a joint project of the Oklahoma Cooperative Extension Service and the Oklahoma Cattlemen’s Association. It is a network of beef producers, educators, veterinarians and industry professionals committed to increasing producers’ access to value added marketing opportunities. Cow-calf operators selling the calves, and buyers alike, benefit from the OQBN program.  The program results in producing heavier, healthier, and higher performing calves. Calves that have been managed according to a Vac-45 program show reduced stress and shrink, an improved immune system, and increased sale weight. As a result, over the last five years OQBN calves have provided average premiums of over $13/cwt for certified weaned and preconditioned calves with over 23,400 enrolled in the program over that time. Average Gross Returns to the producer are calculated to be $76/ calf, a $26 calculated net return on the investment in better calf quality and welfare. 

 

At present, there are nine OQBN sale dates scheduled for calves weaned this fall. The first sale, for calves weaned by September 23, is at OKC West Livestock Market in El Reno on November 7. The complete set of sale dates and weaning dates for each sale can be found at OQBN Certified Sales Information.

 

To enroll calves into the OQBN program, producers should visit the website referenced above to purchase ear tags and initiate the enrollment process. Once the transaction of ear tag purchase is complete you will be contacted by an OQBN representative to schedule a verification. Producers can either complete the enrollment/vaccine records form in the link at the website, or the hard copy of the form included with ear tags purchased. Keep the enrollment/vaccine records form for the OQBN representative that conducts the onsite verification of calves and vaccine records. Certification is complete upon approval from OQBN personnel.

 

Requirements for enrolling calves in the OQBN program include:

All calves must be:

• • • raised on the ranch of origin
    • Weaned a minimum of 45 days
    • Bull calves must be castrated and healed
    • Dehorned and healed
    • Vaccinated with two doses of 5-way respiratory vaccine
    • Vaccinated with two doses of (at least) 7-way clostridial vaccine (blackleg)
    • Vaccinated with one dose of Pasteurella/Haemolytica (shipping fever)
    • Identified with an OQBN ear tag
    • Must follow one of the three vaccination protocols (options on the health protocol sheet)

In addition:

• • • Producers must be Beef Quality Assurance (BQA) certified
    • Calves must be third-party verified by OSU Extension personnel.
       

If you are interested in improving the profit potential of your cow-calf operation by capturing the premiums available through OQBN sales or have questions about the program, contact Paul Vining, OQBN Coordinator at (405) 744–4268 or paul.vining@okstate.edu

 

 

Congestive Heart Failure an Issue in Finishing Cattle

Paul Beck, Oklahoma State University Extension Beef Cattle Nutrition Specialist

 

Congestive heart failure in finishing beef calves is increasing, what used to be known as ‘Brisket Disease’ and only described in cattle populations at higher elevations of over 5,000 to 7,000 feet. Recently deaths from congestive heart failure have been reported in feedlots at low and moderate elevations. It has been estimated that congestive heart failure is responsible for 4% of feedlot mortality causing significant economic losses to the feedlot industry because the majority of these deaths occur late in the finishing period right before slaughter and there appears to be more impact on the highest performing cattle of mostly Angus ancestry.  

 

An analysis in the Journal of the American Veterinary Medical Association of the risk factors and timing of heart failure in feedlots in the US and Canada showed that average heart failure occurred at 179 days on feed. Beef breeds had higher rates than dairy or dairy/beef crosses in each year of the analysis. The impact of risk category for bovine respiratory disease (BRD) was influenced by feedlot elevation, where high risk cattle for BRD had the lowest heart failure rate at low elevation, but risk categories for BRD did not affect rate of heart failure in moderate and high elevation. The authors concluded that risk of heart failure has increased over the last 10-years and that these deaths are occurring later in the feeding period.

 

Another study published in the journal Frontiers in Genetics analyzed a heart scoring system and showed that increasing heart scores were correlated with the percentage of Angus ancestry in commercial finishing cattle and can be used as a selection tool to reduce heart failure risk that would not interfere with selection for carcass and production traits. 

 

Pulmonary arterial pressure (PAP) is also considered a marker for congestive heart failure risk. PAP has been used an and indicator trait for pulmonary hypertension at high altitudes (i.e., brisket disease) and the American Angus Association publishes an EPD for PAP as a selection aid. It is thought that PAP can also be used as a selection tool for heart failure at lower altitudes. The relationship between PAP and feedlot and carcass performance at moderate elevations was examined by Briggs and others at Colorado State. This analysis also shows that PAP is similar in heritability to production traits like feedlot performance and feed intake and will not negatively affect feedlot performance and carcass quality.

 

The increasing incidence of congestive heart failure in feedlot cattle is a challenge to the beef industry for economic reasons like death loss and reduced performance but also because of reduced animal welfare. The genetics of heart failure appear to be unrelated to performance and carcass quality traits, so genetic selection and breeding will reduce heart failure rates without compromising performance and beef quality.