by Jessica Sperber, University of Nebraska

As we near the feedlot fall run and cow-calf producers market their calves at the highest prices received to date, every additional pound (lb.) of gain has greater profit potential.

Profitability and feasibility vary from operation to operation. Producers should invest in management and nutritional strategies that will work for their specific operation. Developing a marketing plan that evaluates different management decisions, health protocols and programs is essential to identifying what is most profitable for each independent operation.

How can cow-calf producers add additional value to their future calf crops?

Merck Animal Health, in conjunction with Superior Livestock Auction, along with Glynn Tonsor and David Renter of Kansas State University, compiled data on 898,500 calves averaging 571 lb. at time of sale from January to December 2023, consisting of 7,612 lots with an average price received of $2.63 per lb. The Superior Auctions data set explores the effect of genetics, health and management factors that affect the price received on five-weight calves at time of sale.

Steers consistently receive a higher dollar value compared to heifers, with five-weight steers receiving an additional $26.33 per hundredweight (cwt.) than heifers. Much of the spread is driven by the historical reluctance of the feedyard sector to feed heifers; although, with the tightened feeder-cattle supply in the United States, heifers are currently receiving equal live and dressed pricing as steers in the fat-cattle market.… with the tightened feeder-cattle supply in the United States, heifers are currently receiving equal live and dressed pricing as steers in the fat-cattle market.

It is evident from pricing data that cattle buyers prefer polled calves that are medium to medium-large in frame. Polled calves/no horns consistently bring a premium in the ring, returning an additional $17 per head than calves with horns. Medium- to medium-large-frame calves returned $22 per head more than small-frame calves.

Genetic merit affects a buyer’s willingness to pay. For example, for five-weight calves marketed through Superior Livestock Auctions, calves that were marketed with the Superior Progressive Genetics Program claim returned $20 per head more than calves marketed without the claim. The program identifies load lots of calves sired by top genetics in the U.S. beef industry.

Those premiums are consistent with what Troy Marshall, director of commercial relations for the American Angus Association, has documented through the AngusLink^SM program. Last year, he says, cattle enrolled in AngusLink saw premiums average more than $70 per head.

With reduced beef cow numbers tightening supply, every additional pound of gain on the calf at time of sale matters. The use of one suckling calf implant administered after 2 months of age results in 23 lb. of additional gain at time of sale. Using the 2023 national average price received of $2.63 per lb., implanting with one suckling calf implant that costs about $1.50 per dose returns $59 per head, or $10.33 cwt.

If producers forgo the use of a suckling calf implant to enroll in a Non-Hormone Treated Cattle (NHTC) program or Global Animal Partnership (G.A.P.) program, the average return for NHTC and G.A.P. calves, compared to calves not enrolled in either program, was $37 per head for NHTC and $25 per head for G.A.P.

How can cow-calf producers add additional value to their calves when marketing this fall?

A healthy calf is a profitable calf, and proper nutrition and supplementation are important for calf performance. An additional 30 lb.-60 lb. can be gained prior to time of sale via creep-feeding. There are various types of creep-feed systems, including grain-based high-energy, limit-fed high-protein and high-quality forage creep. Producers should calculate their cost of gain when analyzing the profitability of creep-feeding, to ensure that the value received for additional pounds of gain overcome the cost of the feed. Producers can utilize https://beef.unl.edu/calculating-value-of-gain to better understand value of gain. With calf prices being exceptionally high for the 2024 fall run, there is a greater likelihood that management strategies, like creep-feeding, return a profit.

Value-added health programs influence calf profitability, and producers should inquire with their veterinarian about programs available. Preconditioned calves consistently top the market, and implementing weaning prior to shipping is favored.

As feeder-calf prices increase, don’t forget about best management practices — every additional pound gained comes with increased value.

Additional resources:

• Hutcheson, J. 2024. What practices pay off at the auction block?
• Wilke, K. H. and H. Clark. 2022. Management, health and nutritional considerations for weaning calves.

Editor’s note: Jessica Sperber is a feedlot specialist for University of Nebraska Extension, which provided this article. [Lead photo by Matt Caldwell.]

Angus Beef Bulletin EXTRA, Vol. 16, No. 8-A