1

Production of Meat Animals(95412)

Topic 5: Types of beef cattle production in USA

Dr Jihad AbdallahDepartment of Animal Production

An-najah National University

2

Types of beef production in USA1. Purebred breeders (Seedstock producers)2. Cow-calf producers: produce weaned feeder

calves for further grazing and/or feeding 3. Backgrounding or stocker operations: in which

body weight is added to recently weaned calves, resulting in feedlot-ready yearlings and

4. Cattle feeders: The cattle feeders feed animals for the slaughter market (finishing phase of production in which cattle are fattened for slaughter).

• A farmer may specialize in only one type of operation or combine several kinds of operations. For example, a farmer may produce calves from a cow herd and also feed the calves for slaughter

3

Purebred breeders• Purebred breeders keep herds of purebred breeding

stock (produce seed stock cattle). They provide replacement bulls for cow-calf operations.

• Cow-calf farmers sometimes buy cows or heifers from the purebred breeder to improve the commercial herd.

• Purebred breeders also sell to other purebred breeders.

• The primary goal of purebred breeders is to make genetic improvement. The purebred breeders are mainly responsible for the genetic improvements that have been made in beef breeds.

4

Purebred breeders• A great deal of knowledge and skill are required to

raise purebreds, and it should only be attempted by those with experience.

• Require knowledge in breeding techniques and tools, record keeping and management, collection and preservation and distribution of semen, progeny testing, embryo transfer, cloning, etc.

• The costs are usually higher in this type of cattle business. It takes many years to develop a high-quality herd and achieve success.

5

Purebred breeders

• Pure bred breeders are divided into three categories:

1. Elite herds: herds that direct genetic change in the breed.

2. Primary herds

3. Multiplier herds• The primary and multiplier herds take the genetic

change from the elite herds and expand it into more numbers of breeding animals and units of semen

• Multiplier herds sell to cow-calf producers

6

Cow-calf production system• The cow-calf system of beef production involves

keeping a herd of beef cows. These cows are bred each year to produce calves.

• The calves are then sold to cattle feeders who feed them to slaughter weights.

• Most of this type of beef production is done in the western range states and upper Great Plains. Land is used that is not suitable for growing crops.

• Beef cows are maintained mainly on roughage. Little or no grain is needed for this type of beef production. This type of operation requires less labor and a lower investment in equipment and facilities than other kinds of beef enterprises.

7

Cow-calf production system

• A larger investment in land is usually needed for this type of operation than is necessary for feeding cattle for slaughter.

• It is difficult to expand or reduce the size of operation quickly. The price received for calves tends to be more closely associated with the supply and demand for calves rather than with the cost of producing them.

• Therefore, a producer may not always recover production costs in this type of beef operation.

8

Cow-calf production system• The cows are usually bred to calve in the spring.

Most calves are weaned in the fall (Autumn) and sold as feeders.

• Sometimes the calves are fed roughage through the winter and sold the next year as yearlings.

• In wheat and small-grain producing areas, animals graze green growth in late summer and fall and eat straw after harvesting grains in summer

• In Corn-belt states (states known for production of corn), cows graze cornstalk aftermath.

9

Cow-calf production system

• Most calf producers expect a cow to produce a calf every year.

• Feeder calves are weaned calves that are under 1 year of age and are sold to be fed for more growth.

• Yearling feeders are 1 to 2 years of age and are sold to be fed to finish for slaughter.

10

11

Profitability of Cow-calf production system

• This system requires land investment (increased prices of land result in high-cost investment)

• Costs on per cow basis (500-1000 $ per cow per year)

• The factors that affect the profitability of a cow-calf operation are:

1. Calf crop percentage (% of calves weaned)2. Calf weaning weight3. Annual cow cost (production costs per cow per

year)

12

Profitability of Cow-calf production system

• The first two factors represent the reproductive efficiency of a herd, which is defined as “ the total number of pounds of calf weaned divided by the number of cows exposed during the breeding season”

• Calf crop percentage is affected more by herd management than by individual animal performance traits.

• The failure of cows to become pregnant and the loss of calves at or shortly after birth are the leading causes of low calf crop percentages (account for about 80% in the reduction in net calf crop).

13

14

Profitability of Cow-calf production system

• Proper nutrition during late gestation and during the early postpartum period has large impact on conception and pregnancy rates of cows.

• Close observation and timely intervention and management can greatly reduce the number of calves lost during the calving season.

• Cow-calf producers should target > 90% calf crop• Emphasis should be placed on cows delivering a live

calf every 12 months. Cows that calve at intervals greater than 12 months are usually not profitable.

15

Profitability of Cow-calf production system

• The price needed to cover production costs can be computed as:

100)(%)(

cosx

cropcalfwegightweaning

tcowAnnualpriceBreakeven

Example: % calf crop = 80% Weaning weight: 500 lb Annual cow cost = 400 $

cwtperxpriceBreakeven $10010080.0*500

400

16

• The ideal time of year for calving season in any given cow-calf operation depends on:

- forage and/or feed supply - available labor - and the intended marketing dates.

• More important is a controlled, scheduled calving season (60 to 90 days), as opposed to a year-round calving season.

Management of calvings

17

Management of calvings

• Advantages of a controlled, scheduled calving season:

1. Most herd management practices can be performed at the same time

2. Use of time and labor can be more concentrated and efficient

3. Slow- or non-breeding cows can be more easily identified

4. More uniform calf crop can be produced.

18

• Feeder calves that typically bring a premium price (high price) at cattle auctions are medium- to large-framed, #1 muscled, crossbred calves.

• The following types of calves are usually discounted (have low prices) at the market: light-muscled calves with poor structure and conformation, calves that are too small (early-maturing) or too large (late-maturing), calves with too much flesh, straightbred calves and calves with horns.

19

• Also, steer calves (castrated calves) are usually 10 cents per pound higher than heifer calves (female calves) and 4 to 6 cents per pound higher than bull calves (uncastrated calves).

• The successful cow-calf operation depends on permanent pasture or other low-cost roughage for feed.

• To optimize production, other recommended management strategies such as the use of growth implants, ionophores, dewormers, etc., should be followed.

20

Backgrounding or Stocker cattle production

• Backgrounding is defined as the process of growing and developing calves (steers or heifers) from weaning weights (450 to 600 lb nearly 200-275 kg) to yearling weights of 700 to 850 lb (about 320-385 kg) when the cattle are ready to enter a feedyard for finishing.

• As a rule, starting with lighter, thinner calves is more profitable.

• Average daily gains from 1.5 to 2.25 lb/day (0.7 to 1 kg/day) should be targeted in a backgrounding operations.

21

• Basic principles involved in backgrounding beef cattle are:

1. Adding 200 to 300 pounds (90-135 kg) of weight per calf

2. Extensive and intensive use of high-quality forage rather than the more expensive high-energy feed sources

3. Assembly of calves into more marketable groups – uniformity in breeding, gender, weight and quality

4. More marketing flexibility for calf/yearling owners. The backgrounding phase usually represents a period of

efficient, predominantly lean growth.

Backgrounding or Stocker cattle production

22

• Several variations of production systems exist for producers.

• Some cow-calf producers may choose to sell their heaviest calves at weaning and background their lighter calves (in addition to purchased light calves) to heavier weights before selling them.

• This option spreads out cash flow and market risks.

Backgrounding or Stocker cattle production

23

• Other backgrounding systems besides the more standard fall to spring method include a program in which fall-weaned calves are “roughed” through the winter with minimal inputs and costs, then placed on spring and summer pasture where they achieve efficient, compensatory growth and then marketed in the fall.

• Selling date is delayed with this system, but it makes good use of summer pasture.

24

• While most backgrounding operations utilize grass for feed, some producers (especially in the major cropland areas) develop calves on harvested forages.

• For example, hay or corn silage, when supplemented with the necessary grain and protein supplement for a balanced ration, can be fed to enable calves to grow but not fatten.

• The cost of gain in this type of program is typically higher than when the cattle are allowed to harvest forage; however, when grain prices are low, this approach has some merit.

Backgrounding or Stocker cattle production

25

Cattle Feeders• The cattle feeder feeds animals for the slaughter

market. The objective is to produce finished cattle in the shortest time possible.

• The operator usually buys feeders or yearlings and finishes them in the feedlot.

• Some producers feed cattle on pasture for a time and then finish them in the feedlot. There is a trend toward more confinement feedlot finishing of slaughter cattle.

26

Cattle Feeders• While some roughage can be used in feeder cattle

operations, this enterprise requires more grain than cow-calf or purebred production.

• • It usually takes grain to get the quality of finish that is

in demand in the marketplace. Feeder operations can easily adjust to changes in feed supplies, operating costs, labor supply, and economic outlook.

• The cattle feeder can expect a return on investment in 4 to 6 months.

27

Cattle Feeders• Cattle usually go on feed as yearlings weighing 700

to 850 lb (about 320-385 kg)

• Gaining on average 3 lb (about 1.4 kg) or more per day in the feedlot and finish weighing between 1,000 and 1,300 lb (about 450-600 kg).

• Most cattle feeders strive for a finish sufficient to grade U.S. Choice.

• The feeding period often spans 150 days, although large-framed, late-maturing cattle require a longer period and small-framed, early-maturing cattle finish sooner.

28

Cattle Feeders

• Calves weaned at heavy weights (650 to 750 lb = 295-340 kg) may be placed directly into the feedlot and finished for slaughter over a 180- to 200-day period.

• The finishing ration is usually altered for calves to

include more roughage and less concentrate early in the feeding period, but working up to high concentrate feeding during the last 120 days.

29

Cattle Feeders

• Some producers finish cattle with grain while they are still on pasture (grain on grass).

• This system typically does not achieve the high degree of finish that is attained in the feedlot since roughage consumption is difficult to control and the cattle expend energy during movement within the pasture.

30

Cattle Feeders

• Feed costs comprise most of the expenses in feedlot operations, therefore, the locations of these operations are generally concentrated in the regions where feed (concentrates) is produced (like Colorado, Nebraska, Texas, Kansas, and Iowa).

• The development of cattle feeding industry in the US has closely followed the corn production which is the major feed grain in the US.

31

Cattle Feeders

• Cattle feeding operations are generally classified into two types:

1. Commercial feeder > 1000 heads, typically utilize more professional expertise in nutrition, health, and marketing.

2. Farmer feeder: < 1000 heads, can effectively utilize high roughage feeds in backgrounding, and can utilize homegrown feeds.

32

Sources

• James Gillspie and Lawrence Flander. Modern livestock and Poultry Production. 8th edition (2010). Delmar, Cengage Learning, NY, USA

• Beef cattle production. MP184, University of Arkansas Division of Agriculture

• Robert Taylor. Beef production and the beef industry: a beef producer’s perspective, (1984), Burgess Publishing Company, Minneapolis, MN, USA.