Marketing Cull Cows

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Marketing Cull Cows
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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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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
Cutter Utility Commercial
Canner 9 14 15
Cutter - 5 6
Utility - - 1
Pritchard, SDSU
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Percentage of Cows in Each Grade Following a
Feeding Program of Shelled Corn and Corn Silage
Days Fed Grades Grades Grades Grades
Days Fed Can Cut Utl Com
0 64 28 8 -
50 18 57 24 1
77 8 21 65 6
105 - 19 74 7
Can Canner Cut Cutter Utl Utility Com Commercial or higher Can Canner Cut Cutter Utl Utility Com Commercial or higher Can Canner Cut Cutter Utl Utility Com Commercial or higher Can Canner Cut Cutter Utl Utility Com Commercial or higher Can Canner Cut Cutter Utl Utility Com Commercial or higher
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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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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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