April 2018 Articles

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Is Preconditioned Marketing Right for Me?

Is Preconditioned Marketing Right for Me? Shane Gadberry, Professor - Ruminant Nutrition, U of A What Is a ‘High Risk Calf’? ■ Sold in single head or small group lots through livestock market auctions. These are high risk because these calves will be comingled with many unfamiliar calves in a new environment, adding stress to the calf. It’s like sending a child off to daycare or kindergarten. ■ Truck weaned. Not only are weaned calves stressed by a new environment, truck weaned calves have the added stress of being removed from the most familiar thing they know, their mother. ■ Bull calf. Since bull beef is tougher and sexually mature bulls can become aggressive toward one another, which can result in injury and bruising, the U.S. beef industry relies on castrating males as early in life as possible. When bull calves are castrated after purchase through a livestock auction market and comingled with unfamiliar cattle, they are more than twice as likely to become sick than steers experiencing the same stress. ■ Not vaccinated or improperly vaccinated. Vaccines build immunity against disease. Calves that are not vaccinated don’t have this extra protection. Calves given one shot of a vaccine but never receiving a booster shot aren’t protected either. ■ Not bunk broke. Calves that leave the farm don’t always go to someone else’s pasture. They may go to a dry lot. In a dry lot, they are usually given something familiar, hay, but also are exposed to unfamiliar feed that has to be eaten from a trough and water that comes from a tank instead of a pond. Calves that know how to eat from a trough can adjust more quickly to their new environment. How Can I Reduce Post Marketing Health Risk With My Calves? ■ Castrate and dehorn calves as early in life as possible. ■ Vaccinate and booster calves for blackleg by 3 months of age ■ Deworm and vaccinate calves for IBR, BVD, PI3 and BRSV 4 weeks prior to weaning. ■ Give booster shots at weaning. ■ Wean calves using fenceline contact with dams, providing a high quality diet as either pasture or high quality hay and a small amount of feed supplement if needed. ■ Hold weaned calves on farm for 21 to 45 days before marketing. Are Buyers Willing to Pay for Added Protection? ■ Marketplace premiums historically average $5 to $8/cwt. ■ In 2005 and 2010, preconditioned calves sold through normal auction markets in Arkansas sold for $4.68 and $6.84/cwt above average price. ■ An analysis of Arkansas Livestock Market News data collected from 2012 through 2016 indicated VALUE ADDED received an average $5.76/cwt premium. Where Does Preconditioning Increase Cost and Add Value? ■ Vaccinating and ear tagging will cost $12 to $15 per calf. Basically, the premium buyers are willing to pay should at least cover the extra cost for vaccines you have invested in cattle. Specialized tags are often used to identify cattle for market that were enrolled and verified through organized preconditioned calf programs. ■ Deworming using an injectable dewormer will cost approximately $4 per calf. Calves only need to gain an extra 4 pounds over 21 days to break even on the investment. ■ Castration mostly involves labor. Bands, surgical knives and wound spray will add some minor direct cost. Historical sale data shows that steers sell for $5 to $7/cwt more than bulls. Despite common belief, bull calves managed similarly to steer calves don’t weigh more at weaning. Plus, growth implants can be used in steer calves, which can add $15 in value from added weight gain. ■ Feeding risk associated with feed cost and livestock market price volatility are the greatest direct risk to preconditioning. Fenceline weaning calves to extra pasture is usually most cost effective. Whether fenceline weaning to pasture or dry lot weaning, supplementing with a small quantity of feed in a trough will help train calves to eat from a feed bunk. Learning how to calculate breakeven price and value of gain can help assess risk. To be profitable, the input costs of pasture, hay and supplement can’t exceed the value attributed to additional market weight and management. Why Should I Bother? This question may shock some readers, but “shouldn’t practices we’re calling premium be the base and every - thing else considered discounted?” So, instead of discussing a $5 to $7/cwt premium for implementing VALUE ADDED practices, maybe cattle not vac - cinated, castrated and properly weaned before entering into a comingled market environment should be categorized as VALUE LESSENED. Proactive animal husbandry should look beyond the farm gate and consider the long-term well-being and produc - tivity of the marketed calf crop. Reduced calf health is linked to increased anti - biotic use, reduced growth rates and lessened carcass quality. Preconditioned marketing is right for everyone. Now is a good time to start developing a management plan for 2018 markets. This may include starting by becoming a BQA certified producer. Training is available online at https://www.bqa.org/ or visit with your county Extension agent about in-person training sessions. ■