Management
BeefTalk : Let the Cow Save you Money and the Bull Make You Money
By Kris Ringwall , NDSU extension service
A recent conversation regarding economic drivers in the cow-calf enterprise left me with a lot to think about .
Let me summarize : The thoroughfare to consumers begins with the conception and birth of a calf that slowly morphs into beef . The beef industry is huge , so reflecting is good as the calf moves from the cow-calf producer to other beef enterprises throughout the beef chain .
Much like the source of a mighty river , at some point , only melting snow or raindrops were present . Mighty rivers do not become majestic if the snow does not melt or the rain does not fall . Everything starts somewhere , albeit small , and needs to grow . The cowcalf industry is no different .
Let us consider some thoughts regarding the cow-calf enterprise . Generally , the cow-calf producer has had some cushion between total expenses and market price ( positive cash flow ). Expenses , however , loom on the horizon as historically high , and given the relative low rates of return on investment , along with the challenges of finding adequate
26 | SEPTEMBER 2018 labor , some cattle producers are giving up the reins .
What steps can producers take to improve probability and , ultimately , return on investment ? Almost anybody can buy a cow and bull , and produce a calf , but that is not the definition of a cow-calf enterprise . The operation needs to have some scale , and I usually review data that involve operations of 50 or more cows . But today , even 100 cows probably are below the threshold of “ economy of scale .”
I will be the first to state loudly that the cow-calf business has many economic drivers , and “ economy of scale ” does not have to be one of them . Why ? Cow producers like cows and enjoy the lifestyle of raising beef . But a positive cash flow will put more smiles on the producers ’ faces .
That being said , how do we do that ? Here are some thoughts .
First , recognize the environment one is in and quit fighting it . Building to beat Mother Nature is futile ; feed the cows , breed the cows and calve the cows when the weather is right .
The weather is right when cool-season grasses are growing actively . As a consequence of calving when the grass grows , a shift occurs when the third trimester of pregnancy starts , creating the opportunity for alternative winter forage programs .
At the Dickinson Research Extension Center , we turn bulls out on Aug . 1 . The third trimester starts Feb . 12 , and calving starts May 7 . Winter feeds costs , which are 70-plus percent of the total cow-calf costs , have the potential to decline significantly , depending on the extent that “ extensive winter forage ” is utilized .
Second , recognize the importance of monitoring cow size . The maintenance of excessively large cows has proven difficult to offset with increased weaning weights . The center has targeted mature cow size at 1,100 to 1,300 pounds . Although individual calf weights will be lighter , total calf weight based on calves produced per acre will be greater , resulting in more total pounds of calf .
Third , recognize the importance of good bull selection using technological advancements that improve accuracy . Generally , keep expected progeny differences ( EPDs ) above the 50th percentile