Dealing with Lower-Valued Livestock Post-BSE

The summer of 2004 furnished very little hope regarding increased movement of beef product for export from Canada. None will argue that the slowest period of price recovery will be with animals older than 30 months of age. Having said that, there is probably not one of us that did not keep back one or two "open" younger cows hoping for better things in the future. At this point in our industry it seems to make more sense than to raise a replacement heifer when there is a possibility that some of these younger cows may rebreed this year. It seems simple: the young open cow is worth $0.20/lb and the replacement heifer is valued at $0.70/lb to $0.80/lb. Is the cost of feeding a cow for one entire year less than developing a bred heifer? Typically we suggest the cost of raising a heifer to calve at two years old to be $1200. On the contrary, the young open cow is worth $200 to $300. If you feed her for a year for $400, she is worth $700, provided she gets bred. Pregnancy diagnosis on the "second chance" cows is therefore absolutely crucial. If they do not breed within the first 45 days of the bull being out this is when you should consider culling them from the herd.

In 2003 many producers kept back more animals then they would have traditionally. With these extra animals on the farm producers also had to procure more reasonably priced feed such as straw to get through the winter. With these extra animals also came the decisions as to what to do with them. There were a few choices:

young open cows – stayed another year
cows with bad feet and udders and/or bad temperament – in calf – stayed another year – just a little extra labour
older cows that are open, had bad feet, bags and/or temperament - sold

In February and March there was an opportunity to sell these older cows for around $0.25/lb to $0.35/lb. Group 1 cows have been either bred to calve with the main herd or some producers have started a second herd to calve in the fall. Group 2 cows have been or will be rebred to calve with the main cow herd and group 3 cows were hopefully sold during the better market conditions in the winter.

Since cull cows have not been worth much since May 2003 producers have been a little more relaxed on their traditional breeding seasons. The normal 65-day breeding season was likely extended, thus making for a longer calving season in 2004 and likely less uniform calf crops. As well, due to the cash flow issues and the drought, many cows were less likely to be in great shape at calving time, making 2004 a very challenging year to keep things trimmed such as breeding and calving seasons in 2005.

So where do we go from here? Below we have made several recommendations that may be useful at this stage.

Keep the breeding season longer and accept the fact that calving may be lengthier. This may ensure a higher calving percentage, thus increasing your overall income even though some calves may be significantly smaller that the earlier born calves at sale day.
Keep the bull power strong. Increase the number of bulls breeding your cows with a minimum of one bull for every 30 cows. Also ensure your bulls are in good breeding condition and monitor their breeding performance on a regular basis.
Don’t skimp on mineral at breeding time. Monitor intakes and provide fresh mineral on a regular basis.
Look into marketing options for cows that are calving outside your normal season. Perhaps you can take advantage of good markets, in which you traditionally do not sell into, such as marketing cow/calf pairs.
Do an early pregnancy diagnosis on your heifers and cows you kept for repeat breeding and sell open stock. Older cows may only be worth $200 to $300 per head but they will cost you more than that in winter feed.

Older cows that are no longer productive or have died must be disposed of properly in order to ensure the responsible image our industry has. If you do not feel that the animals will contribute financially to the operation in the next year, or they are ailing or have died please contact your local MAFRI GO Team Office or Centre for information on disposal options.

Prepared by: John Popp and Melinda German, Manitoba Agriculture, Food and Rural Initiatives

For More Information contact your Local Specialist or MAFRI GO Teams Office or Centre.