This is traditionally the time of year cattle producers will bring cattle to market, including culled cows. These cows have been culled for a variety of reasons, but the base reason is a producer feels they will no longer be a profitable animal. This focus by one producer on their profitability may provide an opportunity for another producer to take an animal of low value, increase their value and turn a profit.
Cull Cow Buyers
The lowest prices for cull cows typically come in October through December due to an increase in the number of cows brought to market. Prices paid for market cows during this time can be 60% less than during the high seasonal prices in the late spring and early summer. Taking advantage of buying cows at the low price and selling at a higher price is possible if a few things are kept in mind.
The focus for increasing value should be on increasing BCS and weight gain will follow. BCS can run from a low of 1 (extremely thin) to a high of 9 (extremely obese). A producer would like to sell a cull cow in BCS 4 to 6 to receive the highest price with cows providing good muscling and appropriate finish. Identifying cows who are BCS 2 or 3 and feeding them to increase to BCS 4 gives a producer the best possibility to turn a profit. Most cows can average a rate of gain of 2 or more pounds per day. Feeding them for 45 to 90 days can result in a weight gain of 100 to 200 pounds. A rule of thumb says for every 75 to 80 pounds of weight gain, a cow will increase one body condition score. Therefore, a gain of 150 pounds on a cow with a BCS of 2 should show an increase to a BCS of 4.
Determining the price to pay for cull cows is based on two main factors: predicted cow prices and feed costs. Data from the Livestock Marketing Information Center (LMIC) shows the price difference from November lows of under $55/cwt. to over $65 cwt. in January is a change of $10 to $15/cwt. in a 60 day period. As an example, calculating for a 1000 pound cow purchased at $53/cwt. ($530), that gains a minimum of 2 pounds per day (120 pounds) and is sold at $65/cwt., she could have an estimate end value of $728 (1120 pounds X $65/cwt. = $728).
Not uncommon to see pens of cows getting fed before slaughter. Cow buyers understand and sort accordingly. Know of lots that commercial feed them. (Have seen the buyer own the cows) Very easy to do with the market conditions we have had. These guys are professionals and have the ability to maximize profits. Another trick is young turn out cows, bred and bring back. Know of an operation that does this with over a 1000 head a year. These rejects look really good and sell well as P2-P3 and not a one of them raised a calf last year. These get marketed back in various methods. Not uncommon for them to be on the internet. Pretty tough game around our industry. Cut my eye teeth on feeding and marketing cull cows. Teaches one lots really fast. Great way to learn buying,marketing, nutrition, and animal health. Like school of hard knocks in the fast lane. Because of those days, marketing of our culls is part of the day to day operation of a cow calf system. Sort,feed,cows and tag calves for early weaning, specifically timed, so cows will hit the traditional market highs. Killer cow prices have very traditional patterns that helps to understand and manage around. For that matter fats have a pattern also. Not Rocket Science. Planning and understanding these patterns helps avoid losses. Can make lots of difference what month one markets into.
As drought conditions continue in much of the Midwest, the amount of cows going to the sale barn continues to be exceptionally high. Cows may be heading to the sale barn without calves, with calves at side, pregnant or previously exposed to a herd bull. The opportunity to buy cows cheap, add value and sell high becomes an opportunity for buyers in the market. The question becomes, what can be done with these cows if bought from the sale barn?
Traditionally, cows bought as culls or determined culls by producers find their way into a drylot or crop residue situations to put on additional gain. The additional pounds, along with selling in a better market, provides the opportunity for that female to provide additional revenue, which she otherwise would have missed out on. For more information on feeding cull cows, refer to the article, Considerations for Cull Cows.
The SD AIB went one step further and considered the sale of cull cows within the state that were potentially carrying the disease and, in turn, introducing it into herds. Since diagnostic testing for trich in females is limited beyond a female with an active infection, any female who fails to carry a pregnancy beyond four months is suspect for infection. In most cases, cows will clear the disease, however this requires time, and during the three-to-five heats before finally rebreeding, every bull that breeds her will be exposed to the disease. Bulls that contact trich cannot be treated and must be sold for slaughter. Therefore, rules for the sale of cows in South Dakota are as implied:
While these rules can be difficult to regulate, the impact of decreasing the incidence of trich and other reproductive diseases in South Dakota herds is the ultimate goal. Trich tests in the cow require five consecutive negative tests a week apart, so the best preventative measure is to ensure all bulls entering the battery have an up-to-date negative test and are re-tested at the conclusion of the breeding season, with any positives being culled. So, when considering options for cull cows, understand the potential consequence associated with bringing cows into the breeding herd. For questions or more information on this topic contact a South Dakota State University Cow/Calf Field Specialist.
However, within each grade, large variation in prices per hundredweight will exist because of differences in dressing percentage. Cow buyers are particularly aware of the proportion of the purchased live weight that eventually becomes saleable product hanging on the rail. Dressing percentage is (mathematically) the carcass weight divided by the live weight multiplied by 100.
Key factors that affect dressing percentage include gut fill, udder size, mud and manure on the hide, excess leather on the body, and anything else that contributes to the live weight but will not add to the carcass weight. Most USDA Market News reports for cull cows will give price ranges for High, Average, and Low Dressing Percentages for each of the previous mentioned grades. As you study these price reports, note that the differences between High and Low Dressing cows and bulls will generally be greater than differences between grades.
As producers market cull cows and bulls, they should be cautious about selling cattle with excess fill. The large discounts due to low dressing percent often will more than offset any advantage from the added weight.
Some culling of beef cows occurs in most herds every year. The Beef Audits have generally shown that cull cows, bulls, and cull dairy cows make up about 20% of the beef available for consumption in the United States. About half of this group (or 10% of the beef supply) comes from cull beef cows. Whether you are culling because of drought or to improve the productivity of the herd, it is important to understand the values placed on cull cows intended for slaughter.
Dressing percentage within each of the four grades will also play a major role in the price per pound of cull cows. Within each grade, large variation in prices per hundredweight will exist because of differences in dressing percentage. Cow buyers are particularly aware of the proportion of the purchased live weight that eventually becomes saleable product hanging on the rail. Dressing percentage is (mathematically) the carcass weight divided by the live weight multiplied by 100. High dressing percentage cows often may bring 6 to 10 dollars or more per hundredweight than low dressing cows within the same grade.
Key factors that affect dressing percentage include gut fill, udder size, mud and manure on the hide, excess leather on the body, and anything else that contributes to the live weight but will not add to the carcass weight. Most USDA Market News reports for cull cows will give price ranges for High, Average, and Low Dressing Percents for each of the previous mentioned grades. As you study these price reports, note that the differences between High and Low Dressing cows and bulls will generally be greater than differences between grades. Many reports will indicate that Low Dressing cows will be discounted up to $10 to $14 per hundredweight compared to High Dressing cows and will be discounted $4 to $10 per hundredweight compared to Average Dressing cows. These price differences are usually widest for the moderate to thin cow grades (Boners, Leans and Lights).
Many cull dairy cows suffer from painful health conditions and injuries that compromise their welfare, such as lameness, general sickness, mastitis, and udder or teat injuries. And even though farmers are supposed to assess animals for fitness for transport before shipping, many cows are still sent to slaughter in a compromised condition.
Inspection reports from the Canadian Food Inspection Agency reveal that a shocking 24% of vehicles inspected contain cull dairy cows with welfare concerns, including those who are downed, lame, and emaciated. These animals are typically sent to auctions to be sold before being shipped long distances to slaughter, sometimes enduring lengthy journeys to slaughter plants in the United States.
Transport is a stressful time for all farm animals, but cull dairy cows are particularly vulnerable. Their welfare often deteriorates from the time they leave the farm to the time they reach the slaughter plant, which can be as much as 7-10 days in some cases. Researchers at the University of British Columbia found that, on average, cows spend 82 hours, or about 3.5 days, in the system before being slaughtered.
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