by Purina Animal Nutrition LLC
Demand for high-quality beef and a tight cattle supply have experts predicting historically high cattle markets for the next several years.¹ Widespread liquidation, primarily driven by drought, has resulted in the smallest U.S. cow herd since 1962, while tighter supplies of cattle favor strong calf prices at this point in the cattle cycle.

“Progressive cattle producers strive to optimize production efficiency through strategic management and marketing decisions,” says Clay Burson, cattle nutritionist for Purina Animal Nutrition. “These investments can pay dividends now and into the future by providing calves buyers seek.”

Take advantage of the strong cattle markets this year and capture the most value for your calf crop with these three tips:

1. Produce quality cattle

Ultimately, the profitability of your calves begins long before you market them.

Something as simple as consistently feeding a high-quality mineral throughout the breeding cycle can affect overall performance for your calves. In a recent study by North Dakota State University, calves gained 36 more pounds (lb.) by weaning when the dams and calves were consistently fed a high-quality mineral, resulting in more pounds to sell.²

“High-value calves start with high-quality, healthy cows,” says Burson. “Cows pass on quality nutrition to calves through fetal programming and continue through their milk supply after calving.”

While it may be tempting during this economy to cut back on input costs, remember the old saying, “You can’t starve the profit out of a cow.” Nutrition is one area where high-return producers don’t cut corners. As a result of their continued investment in nutrition, along with animal health and genetics, the percentage of calves weaned and pounds of calf weaned per cow exposed favors the high-return producer.³

“More calves weaned and more pounds per calf can translate to a significant boost in your bottom line with strong calf prices,” Burson says.

2. Add value to your calves

The excitement of high calf prices can lure you into wanting to sell calves quickly. But, as calves approach weaning age, slow down and evaluate the most efficient value of ownership. Do you want to wean and sell immediately? Wean and take advantage of a 45-day precondition stage? Background calves and market at a heavier weight? Retain ownership through the end?

“Take a hard look at market conditions and the marginal value of weight gain to determine how long you should own your calves and the potential benefits of preconditioning or value-added programs for your calves,” Burson says.

Calf health affects feedlot performance. According to industry research, calves preconditioned for 45 days before entering the feedlot experience one-third of the morbidity and one-half of the mortality of non-preconditioned calves.⁴ Preconditioning programs are also designed to reduce losses in weight gain and increase feed efficiency once cattle arrive at their next destination.

As a result, buyers are normally willing to pay a premium for preconditioned calves. Research shows that, conservatively, preconditioning may capture $50-$75 per head of additional value.⁵ These premiums, on top of already strong calf prices, can potentially provide a good return on investment for your time and money spent on preconditioning.