Cow-Calf Corner | April 22, 2024
Fewer Cattle but More in Feedlots
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist
The April cattle on feed report pegs feedlot inventories at 11.82 million head, up 1.49 percent from one year ago. Feedlot inventories continue to be stubbornly slow to decline despite declining cattle numbers. The latest report included the quarterly breakdown of feedlot inventories by gender. The number of steers on feed April 1 was 7.266 million head, up 1.7 percent year over year and the heifers on feed inventory was 4.555 million head, up 1.1 percent from last year. Heifers made up 38.5 percent of total feedlot inventories, down from 39.7 percent in January. While the heifer percentage in feedlots remains above the average of the past ten years, the decline from January to April is an encouraging sign that heifer feeding is perhaps slowing. During rapid herd expansion in 2015-2017, the heifer percentage of feedlot inventories dropped below 34 percent and averaged below 33 percent for ten consecutive quarters, i.e. two and one-half years. Heifer feeding is expected to decrease significantly more in the coming months.
Feedlot placements in March were down 12.3 percent year over year, a larger decrease than expected. In fact, feedlot placements have been declining for many months in response to decreased feeder cattle supplies. Figure 1 shows that average monthly feedlot placements (12 month moving average) in March were at the lowest level since April 2017. Total placements in the last six months (October-March), which would account for the bulk of cattle currently in feedlots, is down 2.3 percent from the same period one year ago.
Figure 1. Feedlot Placements, 1000 head, 12 Month Moving Average
How, then, can feedlot inventories be above year earlier levels as they have been for the last seven months? The answer is that feedlot marketing rates have fallen even faster than placement rates. Fewer cattle are staying in feedlots longer. In the latest cattle on feed report, March marketings were down 13.7 percent year over year, with monthly marketings just 14.4 percent of the March 1 feedlot inventory. Figure 2 shows the average (12 month moving average) feedlot marketings as a percentage of cattle on feed. Average feedlot marketings in March were 15.4 percent of feedlot inventories for the past twelve months, below 15.5 percent for the first time in data back to 1997.
Figure 2. Feedlot Marketings as % of Cattle on Feed, 12 Month Moving Average
Feedlots have an incentive to keep inventories as close to capacity as possible. One way is to slow down the turnover rate effectively making fewer cattle turn into larger inventories. The result is more days on feed and heavier carcass weights. Steer carcass weights have averaged 25 pounds heavier year over year for the past four weeks, with heifer carcasses over 21 pounds heavier. There are limits to how much feedlots can slow marketings, but feedlots are expected to push carcass weights as far as possible in the coming months. Feedlot inventories are expected to decline in the next few months despite feedlot actions to delay the inevitable.
Quantifying the Value of Good Management
Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist
In comparison to the Purebred Seedstock, Stocker or Finishing segments of beef production, the Commercial Cow-calf sector shouldn’t require as much day-to-day management and labor input. Well managed cow-calf operations can concentrate these inputs into short time frames focused on critical control points of production. The critical control points focus on improving herd health, reducing parasites, pregnancy checks to make sure the cost of cow maintenance is rewarded in the form of a weaned calf, and management to improve the value of calves produced.
The April 16, 2024 Oklahoma Market Report shows that 520 pound steers sold at an average value of $315/cwt, translating to a per head value of $1,638. A price which should result in a good profit margin beyond the annual maintenance cost of the cow that produced the calf. Historically low current US cowherd inventories and limited evidence of heifer retention indicates the robust markets we currently enjoy should be sustained for at least the next couple of years. In such times, it can be easy to overlook the critical control points which result in improving the value of calves.
Control What You Can/Manage the Manageable
The value of good management has never been higher. Consider the following:
- The cow that breeds one heat cycle earlier and calves 21 days earlier will yield a calf approximately 40 pounds heavier the day you wean. At current prices, that is an extra $125 per cow.
- Castrated steers bring $5 – 10/cwt more than bulls. The bigger the bull calves get, the larger the discount. The earlier in life bull calves can be castrated, the less stressful it is to the calf. Testosterone production in intact bulls is very low until puberty. Weaning weights of intact bulls are not heavier compared to steers.
- Dehorned or naturally polled calves sell at a $5 – 10/cwt premium over calves with horns.
- Growth implants can increase gains by 10 – 20%. For the expense of approximately $2 per implant resulting in an extra 18 pounds of added pay weight, this equates to over $55 of additional value per head. Weaning weights of growth implanted steers are often heavier than intact bull calves.
- Preconditioning typically bundles the best management practices of castration, dehorning, deworming and bunk training with a nutritional program to accommodate a 45-day on ranch weaning period. Two rounds of vaccinations (respiratory and blackleg) which can be documented as a marketing tool. One such program is the Oklahoma Quality Beef Network (OQBN) which provides producers the opportunity to certify calves and participate in special sales. Information about the OQBN is available at: Oklahoma Quality Beef Network. The premiums for OQBN calves averaged approximately $13/cwt over the value of non-preconditioned calves from 2011 – 2022. The most optimum time for castration, dehorning and the first round of vaccinations in order to meet the specifications for preconditioned calves is two to four months of age.
Lessons Learned After Disaster
Rosslyn Biggs, DVM, Oklahoma State University Cooperative Extension Beef Cattle Specialist
Recently we were reminded of the devasting impacts of Mother Nature during the wildfires that destroyed parts of Oklahoma and Texas. There is a lot to learn from events of this type so that we can be better prepared in the future. Three areas to consider as we reflect include: animal welfare, record keeping, and human health.
Cattlemen and women along with their veterinarians promote animal welfare at all times, but welfare is especially important when considering animals that have been injured in disaster events. During the immediacy of an event, there is often a desire to take extraordinary measures just so an animal can live. However, unbiased health assessment is often the best option before taking on extreme and lengthy treatment. Evaluation should occur quickly to determine if it is truly in the animal’s best interest to undergo treatment or if salvaging the animal is the best option.
During a disaster response, record keeping and documentation is often the last thing people want to think about. However, records are often even more critical during these periods. Records allow producers to justify eligibility if disaster funds from governmental agencies become available. For instance, maintenance of verified cattle inventories is typically necessary for response programs.
Finally, it is important not to forget the mental and physical toll taken on by impacted producers along with emergency responders during the immediate period of the event and well after. In a desire to help, many people place their own health and safety at risk. Mental fatigue and stress can also develop even in those that are seemingly the strongest. Continual exposure to grief and loss can also impact those helping with the response. It is important to support those needing health care by connecting with them and supporting the need for medical interventions.
Conception to Consumption
The Dairy x Beef webinar series will continue through May 2nd every Thursday at noon from April 25th to May 2nd. This Webinar covers the management of Dairy x 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.
Blueprint for the Future
Cattlemen's Conference Part Two Registration