BEEF COW CALF & SEEDSTOCK INDUSTRY

By

David R. Hawkins

Michigan State University

OVERVIEW

• The cow calf segment of the U.S. beef industry is the largest segment with over 814,000 producers.

• The seedstock industry is a specialized segment of about 120,000 producers who supply herd bulls and replacement females for the commercial cow calf segment.

OVERVIEW

• Average beef cow herd size in the U.S. is about 38 cows.

• Therefore, it is a part-time enterprise for most producers.

• The cow calf industry uses large quantities of pastures and harvested forages.

• Little grain is fed except for replacement heifers and young bulls.

LARGEST U.S. COW CALF HERDS IN 2001

1. Deseret Ranch, Florida - 40,000 cows

2. J.R. Simplot, Idaho - 32,500 cows

3. King Ranch, Texas - 25,000 cows

4. Lykes Brothers, Florida - 20,550 cows

5. Parker Ranch, Hawaii - 18,000 cows

6. Briscoe Ranch, Texas - 17,000 cows

7. Matador Ranch, Kansas - 15,000 cows

8. Silver Spur Ranch, Wyoming - 15,000 cows

LARGEST U.S. SEEDSTOCK HERDS in 2001

1. Leachman Cattle Co., Montana – 3,340 calves

2. Stevenson/Basin Inc., Montana - 2,900 calves

3. Summitcrest Farms, Ohio – 1,939 calves

4. DeBruycker Charolais, Montana - 1,600 calves

5. Express Ranches, Oklahoma - 1,575 calves

6. Sitz Angus Ranch, Montana – 1,450 calves

7. Camp Cooley Ranch, Texas - 1,331 calves

8. BB Cattle Co., Connell, WA – 1,316 calves

BREEDS OF BEEF CATTLE2000 Registrations

• Angus - 260,907• Hereford - 84,989• Limousin – 48,825• Simmental – 43,073• Charolais – 42,738• Red Angus – 39,636• Beefmaster – 32,263• Brangus – 26,898

• Gelbvieh – 26,265• Shorthorn – 18,579• Brahman - 18,000• Maine-Anjou – 12,219• S. Gertrudis - 10,500• Salers - 10,286• Tx. Longhorn – 6,300• Chianina – 6,280

SEEDSTOCK INDUSTRY

• It is a small but highly visible & specialized segment.– Only about 2% to 3% of U.S. beef cattle are

registered purebred cattle.

• In theory, the seedstock industry should be concerned with the same traits that are important to the commercial industry since it is supplying the genetics for commercial herds.

SEEDSTOCK INDUSTRY

• It has a higher investment in cows and bulls, but has the potential to sell breeding stock at a much higher value than slaughter value.

• This segment tends to be an early adopter of new technology.– Artificial insemination and embryo transfer.– National genetic programs to generate EPDs.– Ultrasound and carcass data collection.

SEEDSTOCK INDUSTRY

• Participates in many promotional activities.– Showing and exhibitions.– Advertising in breed and trade publications.– Participation in bull testing & sire evaluation

programs.– Consignment and production sales.– Host and sponsor many youth related activities.

• Average length of time in business is 5 to 7 years.

SEEDSTOCK INDUSTRY

• Cattle produced in these herds are sold to other seedstock breeders, commercial cow calf breeders or enter the normal beef chain.

• Historically, this segment has had wider swings in type than the commercial herds.

• This segment is more likely to have extensive record keeping systems, computers, etc.

• The owners tend to make an above average commitment of time and resources to the industry.

COMMERCIAL COW-CALF

• Primary product is a weaned calf weighing 450 to 500 lbs. at 7 months of age.

• Economics usually dictates that the calf is sold, but we are starting to see some retained ownership.

• Most herds raise their own replacement heifers. • Some of these herds also background cattle,

especially if they have abundant forage.

COMMERCIAL COW-CALF

• Most herds use natural service with bulls.

• Artificial insemination– Less than 5% of cows in commercial herds.– Up to 40% of cows in seedstock herds.

• Calving season may extend over 120 days, but 60 days would be preferred.– Calves are more uniform if similar in age.

CALVING SEASON

• Michigan is a spring calving region.– Jan. & Feb. 7.3% - May 17.1%– March 24.2% - Other 11.8%– April 39.7%

• Southern states may calve in the fall to avoid hot weather. This tends to even out the supply of cattle for feedlots.

BREEDING SYSTEMS

• Straight breeding means mating a bull to cows of the same breed.

• Crossbreeding means using several breeds.– Will increase pounds of calf weaned per cow exposed

to service.• Heterosis or hybrid vigor

• Breed complementarity

• Crossbreeding is most effective when superior purebred cattle are used in a “planned” program.

MICHIGAN COW-CALF NUTRITION

• Feed costs are the largest single component of annual cow costs.

• Pasture (5/15 to 10/30) – 165 days– 1 to 5 acres per cow calf pair.

• Harvested Forage (11/1 to 5/14) – 200 days– Corn stalk residue – 30 to 60 days– Grass legume hay or silage – 140 to 200 days– Fresh water & free choice mineral supplement.

COMMON NUTRITIONAL PROBLEMS of BEEF COWS

• Thin Cows– Body Condition Scores (1 to 9) – 5 to 6 is ideal.– Calving difficulty and delayed rebreeding.

• Fat cows– Calving difficulty and reduced Milk Flow

• Legume Bloat

• Grass Tetany

1995 NATIONAL SPA AVERAGES

• Calf Crop Weaned 84%

• Average Weaning Weight 512 lbs.

• Lbs.weaned/Cow Exposed 431 lbs.

• Annual Cow Cost $ 397

• Breakeven Calf Price $ 93/ cwt.

• Investment Per Cow $ 1,977

• Lbs. of Feed / Cow 2,505 lbs.

HOW TO IMPROVE PROFIT

• Improve Reproductive Rate.

• Wean Heavier Calves.

• Wean Higher Value Calves.

• Develop Alliances & Retain Ownership.

• Reduce Cow Herd Costs.

• Most of the rest of this course will deal with trying to solve the above challenges.