In a recent presentation by Derrell Peel, Oklahoma State University (OSU) livestock marketing specialist, he shared that the projected value of gains for growing calves this winter are in the $1.35-1.40 per pound range, and those values have the potential to go even higher based on projections for available feeder cattle numbers next spring.
This means if we can put gain on calves for less than the projected value of gain, backgrounding our calves to higher weights should be profitable. Pasture is probably not an option, so calves may have to be fed all winter. This may be difficult to do this year with reports of hay sales in the country at $150-170 per bale and feed prices over $400/ton.
Based on these feed prices, our most common feeding program of feeding free-choice hay and a supplement at about 1% of body weight would cost about $2.60 per day and around $1.63 per pound of gain, with gains of around 1.5 lbs. per day.
Other feeding programs may be more profitable but are much more complex and management intensive. Limit feeding a higher concentrate grower diet to about 90% of projected free-choice intake could achieve gains of around 2-2.5 lbs. per day and would cost $1.25-1.30 per pound of gain.
Be sure to feed calves appropriately. Neither excessively thin—body condition score (BCS) 1, 2 or 3—nor excessively fat—BCS 7, 8 or 9—would be considered ideal from a marketing perspective. Excessively fat or fleshy calves will be discounted because of reduced potential for gain. Overly thin cattle may (or may not) receive premiums because of the possibility of compensatory gains, but these premiums are never enough to make up for the reduced pounds of sale weight.
Moderate flesh—BCS of 4 or 5—should be the target condition at marketing. Body fat accretion occurs at different rates depending on the animal’s frame score, sex, postweaning backgrounding gains and growth-promoting technologies used (for instance, implants and beta agonists).
How much gain should we try to put on calves during the backgrounding period? A medium frame steer weighing 450 lbs. with an expected finished weight of 1,200 lbs. and a beginning body fat percentage of 15% (BCS of 4) could gain 2.5 lbs./day and still only reach a BCS of 5 if marketed at 600 lbs. A medium frame heifer should only be pushed to gain 2 lbs./day because fat deposits at a greater rate in heifers, and expected mature weights are 100 lbs. lighter. All targeted rates of gain depend on accurate estimation of mature weights, previous nutrition and the use of growth-promoting technologies.
Backgrounding programs are an important component of adding value to calves postweaning. Cost-effective nutrition programs should be designed to market these calves in the best possible manner. — Paul Beck, OSU Extension beef nutrition specialist
