Don’t Get Discounted
Vaccinated and preconditioned calves are the preferred cattle in the market, says this buyer.
By Larry Stalcup
For years, cow-calf producers have been advised to use a preconditioning program that includes a 45-day weaning period if they expect to sell calves at a premium over market prices. That may not be good enough today.
Without a 60-day weaning program that includes a recommended vaccination protocol, cow-calf operators may face discounts to average market prices, says Surcy Peoples, director of customer services and cattle buyer for Cactus Feeders, headquartered in Amarillo. He says that with today’s increasing cattle numbers, discounts could hit $10 to $12 per hundred pounds (cwt).
Cactus Feeders knows the market. It has been a major buyer of feeder cattle since Paul Engler formed the feeding company in 1975. It includes 9 feedyards in Texas and Kansas. They have a combined 1-time capacity of about 525,000 head. “We will typically finish about 1 million cattle per year,” People says. “That’s about 20,000 animals per week.”
To enhance its animal feeding and production program, Cactus recently diversified into swine production, with facilities in Iowa, South Carolina, North Carolina and Georgia. Employees own 100 percent of the company. Their incentive to produce and finish cattle as efficiently and productively as possible is at its highest.
Cactus operates under strict guidelines to promote sustainability. The Cactus employee motto is, “The animals come first, we don’t go home until they are taken care of.”
The attitude also translates into assurance that young calves receive the best possible care at the ranch. That practice should help them take advantage of their strong genetics, remain healthy when they enter the feedyard and perform at their best while on feed. Peoples says that’s a philosophy that has helped Cactus develop strong working relationships with ranchers across the Southwest.
“About 65 to 70 percent of the cattle we place in our feedyards are from producers in Texas and Oklahoma,” Peoples says. “Good genetics that have been bred into a cow-calf program definitely help them perform. However, the vast majority of the cattle we buy are not purebred.
“They are typically continental and English crosses. Since many are from warmer climates like South Texas, they are often one-quarter Brahman influence and not more than 3/8 ear.”
Cactus and other feedyards often look for cattle that are medium to large frame and have a No. 1 or 2 muscling score. “They have a better chance to perform at the feedyard,” Peoples says. “If you’re selling feeder cattle, you want as much weight as possible and a decent amount of flesh. But you don’t want them too fleshy because of possible decreased performance in the feedyard and a resulting discount.
“For producers who decide to retain ownership and feed-out their calves, they may get by with less flesh on the cattle. And the weight at which those cattle are placed depends on whether it’s cheaper to put on pounds on pasture or on grain.”
Ranching practices that pay
Well more than 95 percent of the cattle bought by Cactus to go on feed come from a good preconditioning program. In monitoring the performance of calves and yearlings from the day they arrive at the feedyard, Cactus Feeders has been able to help cow-calf producers develop preconditioning patterns that promote utmost cattle performance. That includes proven vaccination, weaning and nutritional programs that prepare calves and yearlings for potential stress during shipping and being placed in a confined animal environment.
Peoples says that the value-added calf (VAC) programs that have been promoted for more than 20 years help cow-calf operators have calves better prepared for a stocker or feedyard program. VAC 45 has been very popular. VAC 30 has also been common. But a longer weaning program may pay off more.
“With the 45-day weaning program, the animal initially lost weight. At about day 30, the animal got back to its initial weight. By day 45, it had put on enough weight to cover the cost of preconditioning,” Peoples says, noting that weaning is the most stressful time a calf faces.
“We want them to have been weaned 60 days to insure good health in the cattle. I’ve had very little luck with a 30-day VAC program. And we still see more health problems for cattle weaned 45 days than we do for those weaned 60 days.”
Timely vaccinations are critical in a good preconditioning program, yet some still question whether to vaccinate calves early. Peoples says Cactus has seen fewer health problems with calves that are vaccinated early. Best results are seen when calves are vaccinated at 30 to 60 days old. That helps their immune system develop and enables them to take advantage of their genetics.
Typically, calves receive a modified live vaccine (MLV) combination that helps protect them against bovine viral diarrhea (BVD) as well as bovine respiratory disease (BRD), and that includes protection against IBR, PI3, BRSV and M. haemolytica. “When we’re buying cattle, we want to see a protocol where calves are vaccinated early, then again before they leave the ranch,” Peoples says.
“Like with the 60-day weaning, the vaccination program is critical. We don’t want to be feeding a health problem. For example, a producer may have the cleanest herd possible, but his neighbor may not. If he sends a load to the feedyard and even 1 calf is carrying disease, it can shed and create disease problems for others. So that good vaccination program and proper treatment of sick animals is good for the producer and it helps me, the feedyard operator.”
In addition, all calves should receive a dewormer to control parasites, be dehorned, and all bull calves should be castrated. “Some packers won’t buy cattle with too big of a horn. They can slow down processing,” Peoples points out.
Above all, follow the labeling on vaccines and other animal health products. “If the label says inject in the ear, put it in the ear,” Peoples says. “If not administered properly, the withdrawal time for that particular drug can actually change and have an impact on when that animal is safe to ship to the packer. That is something we are very sensitive to.”
Beef Quality Assurance
The BQA program helps producers implement the best management practices that improve both quality grades and yield grades of beef carcasses. “More and more producers have adopted a BQA program,” Peoples says. “It’s an indication that producers are using animal health products and technology in the proper way. It’s a positive sign that ranchers are conscious about their cattle production and how they will perform at the feedyard and at the packer.”
Of course, good nutrition is vital to a herd’s success. Without the needed protein, energy and micronutrients, calves may not respond as well to a vaccination program. “Having a good mineral program can pay off big,” Peoples says. “Cattle placed on feed often see slower performance if they are mineral deficient. That’s where a good mineral program that supplements grass or feed can really help.”
He advises against using several feeding and animal health practices. “Do not feed chicken litter or ruminant-derived protein,” he stresses. “Do not use any aminoglycoside antibiotics. Also, develop a working relationship with a herd health specialist or a beef cattle veterinarian to help plan a vaccination program and to meet requirements of the Veterinary Feed Directive.
“A good health and nutrition program has an impact on everything from performance at and after weaning, at the stocker level, through the feedyard and in the packing plant.”
It’s about the pounds
Peoples points out that “some cattle are so good they can ‘read and write’ and perform perfectly.” But their carcass weight may be the difference in a profit or loss.
“At the end of the day, the confirmation of the calf is pounds of carcass weight,” he says. “When we sell to the packer, we’re getting paid for pounds of hot carcass. The industry prefers Choice and more cattle grade Choice than in the past. But if the Choice/Select spread is narrow, a Select carcass that yields 66 percent hot weight may provide more return than a Choice carcass that hot yields at 63 percent.”
He says several factors determine hot yield: in weight and days on feed, feed consumption, hide thickness, bone thickness, genetics, technology, feed ingredients, stress and weighing conditions.
Peoples salutes programs such as Certified Angus Beef for promoting higher quality genetics and ultimately higher quality beef. “In many cases, this has helped improve markets for producers using good genetics in their overall program,” he says. “When cattle supplies are tight, genetics and a good animal health program can generate a strong premium for producers.
“But in times like these, when cattle numbers are increasing, cattle that have good genetics and are healthy and don’t threaten others with sickness tend to set the market. So it’s important for ranchers to adopt a good preconditioning program that strives to prevent animal health problems.
“If not, they could see those dreaded discounts.” ❚
“Don’t Get Discounted” is excerpted from the September 2017 issue of The Cattleman magazine.