Cow-Calf Corner | April 1, 2024
Slaughter Cows and Ground Beef
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist
One of the principal ingredients in many ground beef formulations is 90 percent lean
beef trimmings (90s). The wholesale price of 90s reached a record level of $338.56 cwt. the last week of March and appears to still be moving higher. Nonfed beef (cull cows and bulls) is the source of 90s. Fed beef (fed steers and heifers) produce fatty trimmings, commonly reported as 50 percent lean trimmings. The current wholesale price of 50s is $102.84/cwt. A reference formulation of ground beef consists of a 5:1 ratio of 90s to 50s, that is, five pounds of 90s and one pound of 50 percent lean, producing an 83.3 percent lean ground beef product. This wholesale ground beef formulation is currently priced at $299.27/cwt., also a record level.
Cull cows and bulls contribute to nonfed beef production, which is calculated as cow slaughter multiplied by cow carcass weight plus bull slaughter multiplied by bull carcass weight. Monthly average nonfed beef production peaked cyclically in January 2023 and has dropped 8.1 percent in the last 14 months. By contrast, fed beef production has decreased 4.4 percent since the recent cyclical peak in 2022. Thus, the supply of nonfed beef is tightening faster than that of fed beef.
Cull cow prices are increasing in response to the demands of the nonfed beef market. The price of average dressing Boning cows in Oklahoma auctions the last week of March was $133.96/cwt., a new record high. Cull cow prices the same week ranged from $139.02/cwt. for high dressing Breaking cows to $118.08/cwt. for low dressing Lean cows. Total cow slaughter is down 12.8 percent year over year for the first 11 weeks of the year, with dairy cow slaughter down 14.2 percent and beef cow slaughter down 11.3 percent thus far in 2024. Beef cow slaughter is expected to decrease more sharply if herd rebuilding conditions are favorable this year. This will further decrease nonfed beef production and add to the imbalance between 90s and 50s in the ground beef market.
Each fed steer and heifer produces roughly 150 pounds of 50 percent lean trimmings. In average terms, the 5:1 ground beef ratio therefore requires 750 pounds of 90s to produce ground beef from one fed steer or heifer. This is more or less the boneless trimmings from two head of cull cows. Domestic nonfed beef production is only enough lean to match a fraction of the 50s produced in fed beef production. Imported beef trimmings are used to augment domestic lean beef supplies and utilize more 50s to increase the total ground beef supply. Imported beef trimmings are increasing in response to declining lean beef supplies in the U.S. Current prices for 90s (and, indirectly, cull cows) in the U.S reflects the net impact of imported beef on U.S. market values.
Declining total beef production is pushing beef prices generally higher. Ground beef is even more important in this high beef price environment, but ground beef supplies are declining even faster. Beef supplies will continue to decline, led by decreasing nonfed beef supplies and leading to still higher beef prices ahead.
Derrell Peel, OSU Extension livestock marketing, looks at the inventory numbers in the 2022 Ag Census on SunUpTV from March 24, 2024.
Cattlemen’s Conference – Blueprint For The Future – Part 2
Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist
Oklahoma State University will host the Cattlemen’s Conference – Blueprint For The Future – Part 2 at the Totusek Arena on May 22-23, 2024. The conference will provide an educational opportunity for those interested in making use of new ideas, research findings and opportunities to progressively manage their beef cattle business. The beef industry is as complex, dynamic and ever-changing as any industry in the world. Staying informed about topics like gene editing, land stewardship and the impact that your selection and mating decisions have on profit potential, enteric methane emissions and the carbon footprint of beef production is essential. Management decisions impacting the viability of your operation should be based on the most current information, scientific evidence and emerging trends that will shape the future of the beef industry.
Industry leaders from across the nation will address these topics in several panel discussions over the course of the conference. This format facilitates questions and discussion with those in attendance. A CAB steak dinner will be served at the banquet held on Wednesday evening of the conference at the Wes Watkins Center on the OSU campus. There will be a trade show at the Totusek Arena and a drawing for door prizes after the final conference session. The conference is a joint venture between OSU Cooperative Extension, the Cattlemen’s Congress and the Noble Research Institute. The American Angus Association and American Hereford Association are sponsors of this event.
A complete schedule, how to register, the conference headquarters hotel and other useful information is included at the link below. The cost of attendance is $200 which includes all meals. OSU Extension personnel will receive a discounted registration rate of $100 by entering the coupon code: EDUCATOR
Register here for the Cattlemen's Conference.
Crabgrass: A weed can be a forage.
Mike Trammell, Oklahoma State University Southeast Regional Forage Agronomist
Crabgrass is an annual, warm-season grass that is fast growing, easy to establish, and capable of natural and prolific reseeding, all of which allows it to excel as a “weed.”
Despite its bad reputation, crabgrass was originally used in Europe as fodder before being introduced into the United States, likely around the mid-1800s, as a forage for grazing livestock. During the past 30 years or so, there has been an enormous change in the perception of crabgrass with forage and livestock producers. It is now considered a legitimate forage crop.
In 1988, the Noble Research Institute was the first to publicly release a crabgrass cultivar, which was named Red River. During its history, Red River crabgrass became the main commercial cultivar, promoting the use of crabgrass as an important warm-season annual grass for forage and livestock operations. This initially occurred in the southern Great Plains but now has spread throughout the southern United States. Since then a handful of new forage crabgrass cultivars have been developed and released.
These improved crabgrass varieties are not weeds’ but high-producing, high-quality forages that are broadly adapted. The nutritive value of crabgrass is often superior to other warm-season forage options during summer for both haying and grazing. Forage crabgrass has high crude protein (8-14%) and high digestibility, which promotes average daily gains of livestock that can easily reach 2 pounds per head per day. It is also an excellent choice in many double-cropping systems, especially with winter annual forages like wheat, to extend the grazing period.
Crabgrass is widely adapted and can be used in both till and no-till forage production systems and is often managed in many livestock grazing operations as a reseeding crop, thereby reducing the cost of seed and other annual costs. In addition, crabgrass can also be used as a component in warm-season annual and perennial forage systems. It is particularly productive in dryland situations, but it also performs well under irrigation and across a range of soil pH levels (5 to 7.5). It can be used for silage or hay production and is an excellent choice for conservation purposes. It covers critical areas quickly due to its rapid growth and establishment.
Crabgrass seed is light and fluffy which can interfere with its ability to flow through a seed drill. Crabgrass seeds are rough in texture, resulting in individual seeds sticking together to form large clumps. The clumps not only cause problems when drilling but with the broadcasting of seed as well. To overcome these issues, crabgrass seed is sometimes mixed with a carrier, such as a fertilizer, to aid in seed flow through the machine when planting. Planting coated seed is also an option. Coated seed can also improve establishment results by adding bulk and weight to the seed, allowing it to be easily drilled or broadcast.
For best results, plant crabgrass mid-spring to early summer for the best forage production. Since yield is dependent on rainfall, avoid planting after mid-summer. Seeding rates should range from 4 to 6 pounds of pure live seed (PLS) per acre and planting depth should be 1/4-inch deep. Crabgrass’ excellent ability to reseed makes re-establishment each year easy, which can potentially reduce costs; however, it is recommended to add low rates of additional seed annually to the production system. Adequate fertility must be provided for improved forages to be successful, and crabgrass is no exception. Always soil test and apply nitrogen, phosphorus and potassium accordingly.
Crabgrass works well when planted following small grains such as cereal rye or wheat. The small grains provide forage for late fall into spring and the crabgrass fills in during the summer and early fall to provide high-quality forage. Light tillage is recommended when the cereal forage is done being grazed or harvested in the spring. This improves seed germination and promotes better volunteer crabgrass stands for the summer.
In the summer, begin grazing crabgrass stands when plants are 4 to 6 inches tall, which typically occurs 30-40 days after seedling emergence. For hay production, cut crabgrass pastures in the boot to heading stage (normally 18 to 24 inches high), which will allow for at least two harvests per year. Regrowth is supported by remaining leaves and not by stored root and crown reserves, so avoid cutting crabgrass pastures lower than 3 inches.
Crabgrass has been building momentum in the last couple of years, and I suspect that it is due to those producers willing enough to try something “off the wall.” Afterall, this weed has great potential to extend the grazing season and provide nutrient-dense forage to grazing livestock.
Register for the Upcoming Rancher’s Thursday Webinar Series Focusing on Management of Beef on Dairy Crossbreds in Beef Production
Paul Beck, Oklahoma State University Extension Beef Cattle Nutrition Specialist
A new Rancher’s Thursday Lunchtime Webinar Series will run every Thursday at noon from April 4th to May 2nd. This Webinar will cover the management of Dairy Beef crossbreds in the beef production system. There will be presentations on research dealing with the effects of sire selection and early life management on finishing performance as well as management and performance of dairy-beef crosses in commercial feeding operations. Experts from across the nation will cover recent research and real-world experiences in managing and marketing these unique animal resources.