Influence of weaning date and late gestation supplementation on beef system productivity II: economic analysis

Abstract

Cow-calf production systems were analyzed using experimental data and historical economic information to model four separate production year using the 10-yr price period from 2005 to 2014. Treatments included two weaning dates, October (OCT) and December (DEC), and four winter nutritional treatments, grazing winter range with no supplement (WR0), low supplement (WR1), high supplement (WR2); or grazing corn residue with no supplement (CR) applied in a 2 × 4 factorial arrangement. Net returns at the December weaning date were greatest (P < 0.05) for DEC systems where cows were fed the WR2 level ($151.14/cow) or CR ($140.17/cow), intermediate for cows fed the WR1 ($110.44/cow), and least for cows fed WR0 ($62.23/cow). Average net returns across winter nutrition treatments at the December weaning date were greater (P < 0.01) for DEC systems ($115.99/cow) compared with OCT systems ($110.28/cow). Marketing October weaned calves in December increased net returns on average by $47.24/cow compared with October marketing. Retained and owned (RO) slaughter steer net returns sold on a hot carcass weight (HCW) basis were greatest (P < 0.05) for CR systems ($190.62/cow) or WR2 ($188.13/cow), intermediate for WR1 ($132.67/cow) and least for the WR0 ($68.08/cow) treatment. In general, purchasing weaned calves (PC) and marketing them as finished steers either on a HCW basis or on a marketing grid were not profitable. The WR2 and the CR grazing regimes were more profitable than WR0 and WR1 regardless of market end point, primarily due to reduction in replacement and production loss costs.

Keywords: beef cattle; economic analysis; supplementation; weaning.

Figure 1.

Forty-eight production scenarios shown were analyzed using production data from Luebbe et al. (2019). Treatments applied to the March-calving cows in that study included weaning their progeny in October or December and one of four winter nutritional treatments applied during late gestation (December 1 to February 28). Treatments included range without supplement (WR0), winter range with 0.45 kg DM/d 32% CP supplement (WR1), winter range with 0.91 kg DM/d 32% CP supplement (WR2), or corn residue without supplement (CR). In Table 1, results from 2 sale end points using both steer and heifer progeny were evaluated: sell calves in October (Oct sell), or sell calves in December (Dec sell). In Table 2, results from sale end points that used only the steer progeny and feeding until slaughter. Steers were marketed either on a HCW basis or a grid-priced (GP) basis. In addition, the HCW and GP marketing was analyzed for both a retained ownership (RO) scenario and a purchased at December weaning (PC) scenario.