Cattle Cycle

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Cattle Cycle Cull Cows

• Cattle Cycle
• Long as 15 years short as 7
• 8-10 years of profitability
• Counter Cyclically
• Cost of production
• Ability to purchase and sell at lows and highs
• Different attitude toward risk

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Livestock Marketing Information Center Data
Source USDA/NASS
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Cattle Cycle Cull Cows

• Rules of Thumb
• What do these numbers Mean?
• Cow slaughter less than 13 of Inventory
  indicates herd buildup
• Greater than 15 indicates decline
• Heifer Slaughter less than 37 of Cow herd
  considered growth

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Marketing Cull Cows
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Importance of Understanding Cow Slaughter

• 15-20 of a producers revenue comes from the sale
  of cull cows and bulls
• Cow slaughter generates 70-75 of domestic non
  fed beef
• A high percentage of ground beef comes form cows
• Ground beef accounts for 44 of all beef consumed

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Importance of Understanding Cow Slaughter

• Approximately one half of all cows slaughtered
  are dairy cows
• About 1/3 of of domestic non-fed beef production
  comes from dairy cows.

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Economic Importance

• Approximately 7million pounds of Non-Fed Beef.
• 50 slaughter cows
• 9 from bulls
• 13 from non fed steers and heifers
• 28 from imported
• Equates to 20 of total
• beef production

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Processors

• Rosen Diversified 5 plants
• Yankton, SD Cimpl Meats 400 /day
• St. Paul MN
• Long Prairie, MN 1,000 / day
• Omaha, NE 950 /day
• Gibbon, NE 1,000 /day
• Swift 2 plants
• Omaha, NE and Idaho
• Iowa Producers
• Tama Ia. Plant 30 cows 500 / day
• Privately held Plants
• Lovett Pack, NE Host of ones in WI

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Marketing Cull Cows

• Questions
• When are most cull cows sold
• When is the greatest demand for cull cow meat

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Marketing Cull Cows

• Questions
• When are most cull cows sold
• When is the greatest demand for cull cow meat
• Most sold from October December
• Pregnancy checked off grass, old poor performance
• Greatest demand for Ground Beef
• Summer Months can be frozen for storage

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Livestock Marketing Information Center Data
Source USDA/NASS
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Sioux Falls Cow Prices October 22, 2003
Cows Percent Lean Weight
Price Lean Premium White 65-75 1404-1534 lbs
56.00-59.50 Breakers 75-80 1305-1710 lbs
50.50-55.50 Boners 80-85 1162-1479 lbs
45.00-50.00 High Dressing 52.00
Lean 85-90 975-1490 lbs 44.00-48.50
High Dressing 50.00 Low Dressing
42.50-43.00
USDA, Market News
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Sioux Falls Cow Prices October 20, 2004
Cows Percent Lean Weight
Price Lean Premium White 65-75 1404-1534 lbs
58.00-66.00 Breakers 75-80 1305-1710 lbs
54.00-56.00 Boners 80-85 1162-1479 lbs
52.00-54.00 High Dressing 58.00
Lean 85-90 975-1490 lbs 49.00-52.00
High Dressing 56.00 Low Dressing
45.00-46.00
USDA, Market News
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Marketing Cull Cows

• Questions to be asked
• What season of the market are you in?
• The price difference between grades of cows?
• Cost of feeding?
• Select cows that will gain and obtain higher
  grades
• Consider market place.

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Percentage Price Increases Between Cull Cow Grades
Pritchard, SDSU
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Percentage of Cows in Each Grade Following a
Feeding Program of Shelled Corn and Corn Silage
Pritchard, SDSU
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Marketing Cull Cows

• Iowa State Data
• - Feed 60 90 days to obtain White Fat
• Average daily gain 3.8 lbs
• Feed costs were 52.23/cwt
• Conversions were 10 to 1

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Economic Importance of Non-Fed Slaughter Cattle

• Sale of cows and bull for slaughter account for
  15-20 of producer revenue
• When marketing cull cattle Quicker the Better
• Prolapse 6) Cancer
• Sheath Damage 7) Lump Jaw
• Disease 8) Abscesses
• Lameness 9) Incorrect Condition
• 5) Buck Shoot

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Cancer Eye
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Bruising
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Bruising

• Tim Loss (26.8 mil lbs) 23.0 mil
• Loss of Primal 52.0 mil
• Avg loss per head 11.75 / hd
• Producer controlled 4.00 / hd

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Downer Cows

• Only 1 But.
• Causes problems when animal right activist get a
  hold of pictures

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Proper Condition
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Proper Condition
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Proper Condition
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Quality Losses Per Head

• Carcass condemnation 11.99
• Trim dirt/ Bruises 12.00
• Loss of offal 4.00
• Hide devalued 7.00
• Injection Site Lesions .75
• Yellow Fat 2.30
• Poor Muscling 14.50
• Excessive Fat 17.75
• Light Carcasses 4.00
• Other 1.20
• Total 76.00

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Strategies to Improve Quality

• Monitor herd health
• Monitor Condition Scores
• Decreased hide damage Insects
• Reduce Bruising
• Reduce Injection site lesions
• Market clean cattle
• Euthanasia disabled cattle
• Market in a Timely Manner!!!

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Marketing

• Live
• Auction markets
• Live basis
• Risks???
• Packer Direct
• Delivery
• Carcass basis
• Risks??

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Marketing

• Live
• Auction markets
• Live basis
• Risks??? NO Risk
• Packer Direct
• Delivery
• Carcass basis
• Risks?? Great Risk condemned carcasses trim ect

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Marketing

• Where to sell
• Local Auction Markets
• Ask how many cow buyers and who they represent
• How to sell
• Do Auctions use sorting
• How many do the sell (large groups or Small)

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Marketing

• Maximizing Price
• Time of year
• Dressing percent
• Condition
• Quality, Fatness, Structural soundness and Age

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Importance of Understanding Cow Slaughter

• 15-20 of a producers revenue comes from the sale
  of cull cows and bulls
• Cow slaughter generates 70-75 of domestic non
  fed beef
• A high percentage of ground beef comes form cows
• Ground beef accounts for 44 of all beef consumed
• Approximately one half of all cows slaughtered
  are dairy cows
• About 1/3 of domestic non-fed beef production
  comes from dairy cows.

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Marketing Cull Cows

• Questions
• When are most cull cows sold
• When is the greatest demand for cull cow meat
• Most sold from October December
• Pregnancy checked off grass, old poor performance
• Greatest demand for Ground Beef
• Summer Months can be frozen for storage

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Sioux Falls Cow Prices October 20, 2004
Cows Percent Lean Weight
Price Lean Premium White 65-75 1404-1534 lbs
58.00-66.00 Breakers 75-80 1305-1710 lbs
54.00-56.00 Boners 80-85 1162-1479 lbs
52.00-54.00 High Dressing 58.00
Lean 85-90 975-1490 lbs 49.00-52.00
High Dressing 56.00 Low Dressing
45.00-46.00
USDA, Market News
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Marketing Cull Cows

• Questions to be asked
• What season of the market are you in?
• The price difference between grades of cows?
• Cost of feeding?
• Select cows that will gain and obtain higher
  grades
• Consider market place.

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Percentage of Cows in Each Grade Following a
Feeding Program of Shelled Corn and Corn Silage
Pritchard, SDSU
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Marketing Cull Cows

• Iowa State Data
• - Feed 60 90 days to obtain White Fat
• Average daily gain 3.8 lbs
• Feed costs were 52.23/cwt
• Conversions were 10 to 1

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Economic Importance of Non-Fed Slaughter Cattle

• Sale of cows and bull for slaughter account for
  15-20 of producer revenue
• When marketing cull cattle Quicker the Better
• Prolapse 6) Cancer
• Sheath Damage 7) Lump Jaw
• Disease 8) Abscesses
• Lameness 9) Incorrect Condition
• 5) Buck Shoot

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Quality Losses Per Head

• Carcass condemnation 11.99
• Trim dirt/ Bruises 12.00
• Loss of offal 4.00
• Hide devalued 7.00
• Injection Site Lesions .75
• Yellow Fat 2.30
• Poor Muscling 14.50
• Excessive Fat 17.75
• Light Carcasses 4.00
• Other 1.20
• Total 76.00

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Strategies to Improve Quality

• Monitor herd health
• Monitor Condition Scores
• Decreased hide damage Insects
• Reduce Bruising
• Reduce Injection site lesions
• Market clean cattle
• Euthanasia disabled cattle
• Market in a Timely Manner!!!

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Marketing

• Live
• Auction markets
• Live basis
• Risks??? NO Risk
• Packer Direct
• Delivery
• Carcass basis
• Risks?? Great Risk condemned carcasses trim ect