Economic analysis of cow-calf operations shows a strong relationship between Profitability and both Percent Calf Crop Weaned per Exposed Female, and Pounds Weaned per Exposed Female.  This “economic analysis” discussion often leads to a debate of what has more value to the profit potential of a commercial cow-calf operation that sells calves at weaning? Is it reproductive efficiency in the form of a higher Percent Calf Crop Weaned? Or is it the Weaning Weight of the calves? 

This week we take a look at the value of an extra 50 pounds of Weaning Weight versus an extra 5% Calf Crop Weaned per Exposed Female relative to current market values. We frame the debate as follows:

Herd A

200 cow operation

Average mature weight = 1,300 pounds

90% Calf Crop Weaned, resulting in 180 calves (90 steers and 90 heifers at an average of 525 pounds). Herd A is averaging 472.5 pounds of weaning weight Per Exposed Female.

Herd B

200 cow operation

Average Mature Weight = 1,300 pounds

85% Calf Crop Weaned, resulting in 170 calves (85 steers and 85 heifers at an average of 575 pounds). Herd B is averaging 488.8 pounds of weaning weight Per Exposed Female.

According to the November 17, 2023 USDA Oklahoma Weekly Cattle Auction Summary:

Herd A’s Calves

525 pound steer calves are worth $294/cwt, or approximately $1,544 per head.

525 pound heifer calves are worth $243/cwt, or approximately $1,276 per head. 

90 steers x $1,544 = $138,960

90 heifers x $1,276 = $114,840

For a total gross value of $253,800

Herd B’s Calves

575 pound steer calves are worth $273/cwt, or approximately $1,570 per head.

575 pound heifer calves are worth $235/cwt, or approximately $1,351 per head.

85 steers x $1,570 = $133,450

85 heifers x $1,351 = $114,835

For a total gross value of $248,285

The Bottomline

Under current market conditions, Herd A’s advantage of 5% more Calf Crop Weaned results in $5,515 in extra revenue over Herd B’s 50 pound advantage in actual Weaning Weight. Reproductive efficiency (in the form of a higher percent calf crop weaned) is a very economically important trait in a cow-calf operation.

References:

Chapter 4, OSU Beef Cattle Manual, Eighth Edition, E-913                

USDA AMS Livestock, Poultry & Grain Market News. OK Dept. of Ag Market News

Dr. Mark Johnson, OSU Extension beef cattle breeding specialist, explains the importance of reproductive efficiency on SunUp TV’s Cow-Calf Corner from October 27, 2023. https://www.youtube.com/watch?v=nlctfVpXhd4&t=59s

SOURCE: Bovine Veterinarian, By Mark Z. Johnson November 29, 2023

PHOTO: Tony Walz UNL