As input costs continue to soar, now is a good time to consider improving your management practices to add value to your calf crop and help offset those rising expenses. With ongoing cow liquidation and a relatively high demand for beef, the nearby calf market remains bullish. Combine that with a growing number of certified branded beef products on the market, and premiums are likely to increase as buyers search for calves to fit their programs.
Whether you sell your calves at an auction barn, on a video sale or even private treaty right out of the pen, there is an opportunity to capture top dollar. Three industry professionals weighed in with five tips to add value to your calves and improve your overall bottom line.
Tighten your calving window
Depending on the size of your herd, by tightening your calving window, you may be able to create more uniform load lots of calves to sell on a video auction or even just larger drafts of like kind and size calves that tend to bring more than singles or smaller groups at the auction barn.
Jeremy Anstine, owner of Kingsville Livestock Auction in Kingsville, MO, said when producers are diligent about pulling bulls at a set time, they often get a better weigh-up and more uniformity. Over time, those shorter breeding seasons also help identify the cows that breed early and ultimately wean a bigger calf, which also adds value.
Upgrade your genetics
Proven genetics are an investment, but one that will often pay for itself in improved growth, carcass and even maternal traits. Work with a seedstock producer you know and trust to help find a bull that meets your herd’s needs. Commercial Red Angus producer Celeste Settrini said genetics play a key role in her family’s California operation. They market their fall-born calves through Western Video Market with the lighter end going to Turlock Livestock Auction Yard in Turlock, CA.
“Bull selection is really key for us,” she said. “We select for low birth weight bulls that excel in growth and carcass merit, but because we often retain and market some replacement heifers each year, we also look closely at milk, good feet and leg structure and docility.”
Industry standard health protocols
Anstine said one of the most effective ways to add value to calves is to implement a recognized vaccination program that provides at least two rounds of shots and depending on the time of year and available resources, consider weaning calves for 45 days.
“Compared to unweaned calves with no shots, we’re seeing these spring program calves bring a $15/cwt to $20/cwt premium,” he said. “Because of lighter supply in the spring, the spread is more narrow for fall-born calves but can still be at least $5/cwt.”
The Settrini family gives two rounds of shots—one at branding time in November and then one prior to shipping at the first of May. For many years, they weaned their calves and fed them in a dry lot for 45 days, but Settrini said with modified logistics on their operation and the increasing cost of feed, they successfully started pulling them off the cows the morning of shipping.
“We’ve had a repeat buyer for our calves, and because of our strict vaccination program, they have continued to wean really well for them,” she said. “They typically average 750 pounds right off the cow, so they are ready to move on.”
Consider verification programs
As the demand for certified branded beef grows, third-party verification programs continue to offer opportunities for significant premiums. The Red Angus Feeder Calf Certification Program (FCCP) provides age, source and genetic verification for Red Angus-sired calves and affords access to international markets and exclusive grids. FCCP is verified through IMI Global, which easily opens the door to other value-added programs like non-hormone treated cattle (NHTC), verified natural and grass-fed beef and IMI Global’s newest sustainability program, BeefCARE.
Settrini and her family have successfully been using the FCCP yellow tags for a number of years and recently went through an onsite audit with IMI Global to market their calves NHTC and verified natural.
“We have already been meeting all of the qualifications with the calves, so why not enroll them and make it work for us?” she said. “The audit process was very straightforward and fairly simple to do.”
Mike Bolinger has been a Superior Livestock Auction representative for more than 20 years. He also raises commercial Red Angus cattle on his family’s ranch near Brush, CO. He said whether they’re off the cow, weaned or yearlings, program cattle with some genetic merit pay.
“On the spread between commodity cattle and NHTC or verified natural, we’re talking $8/cwt to $12/cwt,” he said. “If you go through the G.A.P. animal welfare certification, you’re talking $15/cwt to $20/cwt or more.”
Bolinger said G.A.P. (Global Animal Partnership) requires an extensive auditing process and in his experience, is most beneficial for calf crops with at least 200 head. He added that IMI Global’s BeefCARE is a similar sustainability and stewardship program with growing industry recognition and is a bit more producer friendly.
“Either way, if you have strong genetics and good management practices, don’t be afraid to do one of these programs,” he said. “Nearly all of my Superior customers participate at some level because they’re usually doing most of the requirements already and now they’re seeing a return on that investment.”
Build a good reputation
Regardless of where you market your calves, buyers will remember if they got along well with them and are more likely to have an interest in buying them again in the future. As someone who regularly sits in a sale barn and attends numerous video auctions throughout the year, Settrini said it is evident that when quality calves with two rounds of shots and other added programs come through, buyers will pay for them.
“Buyers know what’s up, and if the genetics are not there or you skimp on your vaccine program, they will know after their first round of buying them and they may not come back,” she said. “My thought is why not do all the ‘good stuff’ so they keep bidding year after year?” — Macey Mueller for the Red Angus Magazine
