While the country is buzzing every single day with new records for all classes of cattle, by no means was anyone surprised by the latest annual Cattle inventory report. It’s still very frustrating we couldn’t have a report during the summer months as we’ve had in the past several years, but the January report was a “look and move on” release.
This being said, the national cow herd is down an additional 1% over last year’s published numbers. Estimated at 27.9 million beef cows, the national cow herd is still declining. For reference, the 2020 report estimated the herd size at 31.3 million beef cows, a 3.4 million decrease in five years showing an annual decrease of 680,000 cows each year. This really isn’t newsworthy since it’s been reported on so heavily over the last several years. The latest data shows the cow herd being the smallest size in 64 years.
The calf crop size followed suit, down slightly, but the point to remember is the added poundage of carcass weights the previous calf crop is producing. While placements have held somewhat steady through these mind-boggling herd size decrease trends, beef production has been offset with carcass weights increasing, which has bumped up overall beef production by almost 2%. The genetic packages that are being sent off to the feedyards are so commendable and is the focal point that sticks out in my mind. For reference, carcass weights from the 1960s have increased by over 260 pounds. They’ve jumped almost 25 lbs. in the last year alone.
The cow-calf sector has been so resilient and adaptive to market signals. We all remember what cattle looked like in the ’80s, and they don’t compare in any form to the cattle being raised today, and this holds true when the hide is pulled. In my opinion, cattle perform, convert and grade on a scale that isn’t comparable to the products being raised just a few decades ago. This is why the conversation is surfacing about revamping the grading system.
From my perspective, market signals being sent downward from the packer and consumer level have told the producer to raise cattle that meet a different standard. When larger ribeyes were needed, breeders produced cattle that had bigger ribeyes. When the larger ribeyes didn’t support marbling density, the message was sent for carcasses to hold more marbling. While ribeye size and marbling were traditionally antagonistic traits, today’s cattle are quite the opposite. Rarely do you find cattle leaning drastically one way or the other and those cattle are becoming a thing of the past. On top of this, yield grade scores of 4 or higher have continually decreased. So, larger ribeyes with added marbling without the extra fat cover have become the carcass norm, all while producers have added muscle, performance and conversion while reducing overall frame and skeleton.
Clearly, I think of the cow-calf producer as extraordinary in their abilities. Do you remember milking out bad-uddered cows in a snowstorm? Many of us do. Today, most of us don’t touch an udder, assist calves very rarely and continue to build a cow herd that carries functional traits that make management a much easier task. I say this knowing there are always chores to do and cows needing assistance during the heart of calving season, but the frequency is much, much less.
In a conversation last week during the National Cattlemen’s Beef Assocation convention, I had the opportunity to speak to a cattle buyer who handles several hundred thousand head each year. In this, he revealed to me the emphasis they are now placing on genetics that cattle have. By tracking the performance of the cattle they buy, genetic makeup is now being looked at as a major risk management tool. Genetics, according to him, are more important to them than they ever have before.
The genetic component is also becoming the story that is following the cattle and the story that is being relayed to the consumer. On top of value-added programs, genetics is a key component and will continue to be looked at with more and more scrutiny.
Right now, the heifer calf crop that is being fed out and was not retained by the rancher has continued to show that the production level is still being driven by input costs and financial incentive to sell a higher valued feeder calf. The economic pressure to sell heifer calves still outweighs retention, which means retention still isn’t fully on the mind of producers. While the bred female market has taken a jump in value this fall, the number of females going back into the production system’s needle hasn’t moved. The national cowherd is taking a much slower approach to retention, and with economic pressure remains high, this will continue to curb replacement heifer retention. This will continue to drive a replacement heifer that carries a genetic punch that sets up the producer for continued marketability and reward. — LOGAN IPSEN
