  BeefTalk:
Cow Value Is Important to Create Cash Flow Value
By Kris Ringwall, Extension Beef Specialist,
NDSU Extension Service
A review of this fall’s cow sales provides insight on the need to value cow
sales within the beef operation. In cow/calf country, calf values are the main
focus of discussion at beef meetings, with some discussion of the fat market. In
feedlot country, discussion on fed values take over. In years like the past one,
inventory reductions can have a dramatic impact on total revenue. Monitoring the
sale of cows or bulls is just as critical as the sale of calves.
At the North Dakota State University Dickinson Research Extension Center, cow
income for 2002 has been substantial. For all practical purposes, no cows were
sold during calving and early summer. It’s tempting to load the problem cows
out as soon as possible, however, planned sales are more effective and provide
the opportunity and assurance that producers are actually selling beef not cull
cows.
Dry cows were sorted off and pastured separately until a logical marketing
plan could be put together. This allowed the cows that had calving problems to
cease milk production, get over any calving difficulty and gain weight and
condition. Additionally, this plan also allowed us to meet withdrawal times for
any medication that may have been given to cows. Beef Quality Assurance is not
only a calf program, but involves all cattle that enter the food chain.
The fiscal year for the center is July 1 to June 30 and we sold cows in
August, September, November and December.
Those sold in August were dry cows that had been held since spring calving
and some early weaned cows. The early weaned cows were problem cows, older cows
or poor-performing cows. The prognosis of a continued pasture shortage triggered
the sale of these cows early, before the shortage of feed became a problem.
The 43 cows sold in August were not suitable to be sold as bred cows in the
fall. (Integrity in the beef business means making a choice between those cows
that are not working on your operation but could fit someone else’s production
plan versus those cows that really don’t fit any production plan except beef.)
In this case, these cows needed to go the cull route. The cows went to 11
different buyers, averaged 1,128 pounds and sold for an average of $40.88 per
hundredweight, a total of $19,819 or $460 each.
In September, eight cows went to three different buyers, averaged 1,223
pounds and sold for an average of $35.15 per hundredweight, a total of $3,446 or
$430 each.
In November, 114 cows were sold--16 culls and 98 bred cows. The 16 culls went
to nine buyers, averaged 1,216 pounds and sold for an average of $30 per
hundred-weight, a total of $5,841 or $365 each. The 98 bred cows, consisting of
several ages and calving dates, sold in 17 lots to 10 buyers for a total of
$65,375 or $667 each. They averaged 1,368 pounds and sold for $48.76 per
hundredweight.
The calendar year closed in December as five cull cows went to four buyers.
They averaged 1,273 pounds and sold for $35.32 per hundredweight, a total of
$2248 or $449 apiece.
In total, the Center received $96,729 in the sale of cows. Cull bulls and
cull heifers also need to be added in.
It is important to sketch out a cow marketing program for next year. The
above scenario may not repeat itself, but the cull cows sold in August sold the
highest, and moving cows as productive bred cows, produced more revenue than
culls. These are only pieces of the overall management plan, but important
nevertheless.
May you find all your ear tags.
Your comments are always welcome at www.BeefTalk.com.
For more information, contact the North Dakota Beef Cattle Improvement
Association, 1133 State Avenue, Dickinson, ND 58601 or go to www.CHAPS2000.COM
on the Internet. In correspondence about this column, refer to BT0124.
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Source: Kris Ringwall, (701) 483-2427, kringwal@ndsuext.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu
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Graphic
Cow Sales for the Current Fiscal Year
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Average Value Total
Number Type Weight per Head Income
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72 culls 1167 lbs $ 435 $ 31,354
98 bred 1368 lbs $ 667 $ 65,375
170 total 1283 lbs $ 569 $ 96,729
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NDSU Dickinson Research Extension Center
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