By John F. Grimes
I find it hard to believe that we will soon turn over the calendar and enter into 2017. 2016 will certainly go down as a year to remember for things that many thought could never happen that actually became reality. If someone told you at the beginning of 2016 that the Cavaliers would finally bring Cleveland a championship, the Chicago Cubs would win the World Series, and Donald Trump would be elected our next President, you probably would have questioned their sanity!
Unfortunately, many beef cattle producers will remember 2016 for less than positive reasons. The industry experienced one of the most significant economic downturns in the history of our business. There are many theories as to whom or what caused this severe price drop to occur including our government, the packing industry, the demise of Country of Origin Labeling, imports, Jim Harbaugh (not really!), etc. I do not believe the primary culprit for the steep price decline lies in this list.
I believe the beef cattle price decline that started in the second half of 2015 and continued into 2016 is a direct result of simple supply and demand economics. Producers aggressively responded to the fact that prices began to rise in 2013 and reached historically high levels in 2014 and the first half of 2015. These prices encouraged producers to retain record numbers of heifers as replacements which was facilitated by the reduction of the amount of acreage across the country that was experiencing drought conditions. Simply put, higher prices combined with more grass and water will build cow herd numbers. Additional pressure on beef cattle prices can be attributed to the fact that our primary competitors in the animal protein market, pork and poultry, have quickly ramped up their production over the past couple of years.
I believe that we must accept that the prices that we saw in 2015 and 2016 for all classes of beef cattle are not returning anytime soon. I also believe that producers who can achieve a positive balance between production levels and costs of production can continue to be profitable in the beef cattle industry. Every operation needs to set aggressive goals for improvement to remain competitive and profitable in today’s challenging economy. The following are a few realistic goals that the typical cow-calf producer in the state of Ohio can set for 2017.
1. Limit the breeding/calving season to no more than 90 days.
There is a great deal of university research that shows the profitability found in the older calves born in a given calving season. There are volumes of documentation on the herd management advantages associated with a relatively short calving season. Remember, calving year-round is not a season!
2. Don’t use a bull unless he has had a Breeding Soundness Examination prior to breeding season.
As logical as this practice may seem, not nearly enough bulls have a Breeding Soundness Examination performed before turnout. A grain farmer utilizes a monitor to determine if his planter is delivering seed to the soil at a targeted rate. A custom operator calibrates his sprayer periodically to make sure he is applying pesticides at a rate to control pests and protect the crop. As expensive as annual cow costs are at this time, every cow needs to deliver a live calf in order to give the producer a chance to make a profit. A herd bull with poor fertility is an easy way to create red ink on a profit/loss statement.
3. Cull aggressively to weed out cows with low fertility and other management problems.
Poor fertility is not limited to the male side of the equation. Cows that have failed to conceive when exposed to highly fertile bulls or bred several times by an experienced Artificial Insemination (A.I.) technician are prime candidates for culling. Additional reasons for culling a female from the herd are long calving intervals (over a year or more), disposition problems, poor udder structure, structural correctness issues (focus on feet and legs), age, etc.
4. Identify all animals within the herd.
Regardless of the size of your production unit, identify all bulls, cows, yearlings, and calves within your herd. It is much easier to make critical management decisions when you are able to identify individual animals. You can’t evaluate or measure it if it isn’t identified.
5. Don’t be afraid to utilize structured crossbreeding programs.
Heterosis is defined as the increase in an animal’s performance on any given trait above the average of the parent’s performance. It is a unique benefit that Mother Nature provides to a cattle producer. This phenomenon can be very dramatic in lowly heritable traits such as fertility. Heterosis is practically maximized when a two-way cross cow (Breed A X Breed B) is mated to a bull from a third breed (Breed C). An optimal crossbred cow would be heavily influenced by breeds strong in maternal traits while growth and carcass traits can be derived from the sire side. Utilize breeds that compliment each other genetically and provide you the best opportunity to meet your production goals in terms of the marketability of the animal and mature size of the cow.
6. Minimize the use of harvested feedstuffs.
Feed costs are the largest expense contained in an annual cow budget. While a certain amount of harvested feeds are necessary for the cow herd in a calendar year, efforts must be made to minimize the use of harvested feed. Any time a four-legged, ruminant-driven harvester is used instead of a piece of machinery, costs are reduced. Take time to learn more about the principles involved with extending the grazing season.
7. If you must make hay, then don’t waste it.
Haymaking is a very expensive practice if you document all of the costs. However, once the hay is made, the work is not done. Many research trials have documented large amounts of hay wasted through poor storage techniques. Investments ranging from extra rock on the ground to temporary covers to a permanent structure can save significant dollars by preventing hay spoilage. Poor feeding techniques can further compound this problem. Feeding devices that limit hay being fed outside on the ground should be utilized. While this practice may not be convenient for a cattleman with an off-the-farm job, more frequent feedings of smaller amounts will help minimize wastage.
8. Improve your facilities to improve herd management.
Objectively evaluate your facilities to determine if they are limiting your ability to manage the herd. Do you have a basic chute and working system that will allow you to safely handle animals and provide adequate herd health practices? Could an extra fenced lot or two allow you to remove the herd bull from the cows or wean calves and precondition them prior to marketing?
9. Critically examine all management decisions and inputs.
Today’s economy dictates that we use a very sharp pencil in the budgeting process. The way that we have always done it may not work today. Should I buy my hay instead of making it myself? Is a lower priced bull the right choice for my herd? Is my herd benefiting from my mineral program? Just how expensive an energy source is a “lick tub?” Does my current calving season provide the best opportunity to maximize calf crop percentage and facilitate optimum marketing opportunities? You get the idea.
10. Get involved in the beef industry and understand the issues.
This resolution may not directly impact the cow herd but it does influence the overall health of your entire operation. Now more than ever, it is important to become a member of your local, state, and national cattle organizations. We cannot expect people outside of our industry to promote our product and fight for the issues that are near and dear to us. It is our duty to the beef industry to understand the issues that threaten our livelihood and speak out individually and through the strength in numbers that a cattlemen’s organization can provide.
Hopefully, this list of potential goals gave you some ideas for improving the overall performance and profitability of your herd. There is no time like the present to get started on the goals for your herd in 2017.
Source: osu.edu