Buyers value feeder cattle on a host of factors including weight, flesh, region, genetics, sex, shrink, and lot size. One of the things most valued by feeders is the health status of the calves. Kansas State University (K-State) has been studying the various factors that affect value in Superior Livestock Auction video sales for a number of years, and recently released the relative value of Superior’s various VAC preconditioning health programs by weight class.
Superior offers a variety of levels of preconditioning called VAC 24, VAC 34, VAC 34+, VAC 45 and VAC 45+. VAC 24 represents a vaccination program at branding when calves are 2 to 4 months of age, and includes one dose of a seven- to nine-way Clostridial vaccine and one dose of a five-way viral respiratory vaccine.
VAC 34 is similar with an added bacterial pneumonia vaccine and the vaccines must also be administered two to four weeks before shipping. VAC 34+ includes a second booster shot. With VAC 45, calves receive two doses of vaccine and must be weaned a minimum 45 days, and VAC 45+ includes a third round of booster shots. At all levels, internal and external parasite control is recommended but not mandatory.
Frank Wedel, who runs a backgrounding yard in Leoti, KS, confirms that cattle given their preconditioning shots result in healthier calves. He emphasizes, “Calves with proper preconditioning shots are not only healthier, but if they do break [get sick], their response to treatment is greatly improved. It’s also important that [preconditioning] shots be done correctly. Producers need to follow the label and not expose the vaccine to undue temperature extremes and sunlight.”
Analyzing the value of vaccination programs, K-State utilized VAC 24 as the base. The table from research on Superior data from 2010 through 2016 demonstrates that all levels add value, but interestingly, there is a significant interaction with calf weight with lighter calves receiving a bigger premium than heavy calves (See Table).
Dr. Ken Odde, Animal Science department head at K-State relates, “The results of our study actually surprised me when I first saw them. It hadn’t occurred to me that the premiums for calf health programs might be influenced by calf weight. After seeing the results and giving it some thought, I think it makes sense. I suspect that what is going on is that as calves get heavier (independent of calf health program) disease risk, particularly respiratory disease, is declining.”
Although the value of health programs is significant, ranging up to $40 per head, they are not as high as many people think, which suggests that buyers have come to expect some level of preconditioning when purchasing calves. The number of head in each category would support this with the vast majority of calves earning status above VAC 24.
The reputation of a producers’ calves is hard to quantify in a university study, but is extremely important. Producers who market calves that are prone to higher-than-normal levels of morbidity and mortality will see their cattle discounted, while producers who market healthy calves will have repeat buyers willing to pay a premium.
When aiming for VAC 45, the weight gained during the weaning period is important to making the program pay. This takes facilities, labor, and feed resources, and if producers have the right setup, weaning helps provide healthier calves.
Most calves fall in the VAC 34 category, meaning the majority of them are being marketed straight off the cow with all their preconditioning shots. This fact has brought backgrounding yards into a more important position in the industry. Backgrounding yards are the bridge between cow-calf producers and large commercial feedlots. They straighten out the cattle from a health standpoint, and it is where the cattle are trained to eat from a bunk, drink from waterers, and get used to being handled before heading to a commercial feedlot for finishing.
Backgrounding yards are becoming more common as more and more small feed yards are specializing in this segment of the industry. Small yards have trouble competing with large commercial feedlots when it comes to finishing cattle, but their size and labor resources make them ideal for straightening out and growing calves.
Preconditioning is an important cog in an efficient beef industry. Sick calves are simply not profitable. The data from K-State’s study demonstrate that the most preconditioning premium per head is on lighter calves, and suggests that some level of preconditioning has become expected by feeder buyers. — Dr. Bob Hough
