Management Determines the Selling Price of Feeder Calves
Management Determines the Selling Price of Feeder Calves By Dr. Tom Troxel, Professor, Associate Department Head—Animal Sciences, UofA
Management is the judicious use of means to accomplish an end. For beef cattle operations, the accomplished end is a product that can be sold for a profit. It’s the management applied that determines the price of your feeder calves, not the buyers at the sale barn. Listed are a number of management practices than can reduce the selling price of feeder calves.
• If management sells calves one head at a time,
management can expect a discount of $4.79 per cwt.
compared to calves sold in groups larger than five.
• If management decides not to castrate bull calves,
management can expect a discount of $6.31 per cwt.
compared to the selling price of steer calves.
• If management decides not to dehorn or eliminate
horns due to genetics, management can expect a
discount of $8.03 per cwt.
• If management decides to place calves on long-term
creep feed resulting in a calf that is fleshy or fat management can expect a $6.13 to $13.96 per cwt. discount compared to feeder calves in average body condition.
• If management decides to sell a calf that is full or
tanked, management can expect a discount of $6.86
to $15.95 per cwt. compared to a feeder calf in
average fill.
• If management decides to produce calves that are
small framed, management can expect a discount of
$22.10 per cwt. compared to large- and mediumframed
feeder cattle.
• If management decides to produce calves that are light
muscled (muscle score 3), management can expect a
discount of $32.41 per cwt. compared to muscle score 1 feeder cattle.
Let’s not forget – who is management? Management is
you – the producer. The decision you make and the
management you apply determine the value of your
calves on sale day. The selling price can be reduced due
to discounts or increased due to premiums. The decision
is yours. The data used in this article was collected from
Arkansas sale barns in 2010.
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