The Newsletter
From the
Oklahoma Cooperative Extension Service
November 3, 2014
In this Issue:
Marginal
thinking for optimal decisions
Derrell S. Peel,
Oklahoma State University Extension Livestock Marketing Specialist
Cow age and cow
productivity (When is she too old?)
Glenn Selk,
Oklahoma State University Emeritus Extension Animal Scientist
Marginal
thinking for optimal decisions
Derrell S. Peel,
Oklahoma State University Extension Livestock Marketing Specialist
How
should $300+/cwt. calf prices affect cow-calf producer decisions? The
market signal is pretty clear; more calf production is needed and will be
rewarded. For many producers, this may be a question of expanding the cow
herd. In addition to potential herd expansion, producers should consider
whether current market values should prompt management changes as well.
Consider this question, for example: What is the optimal level of death loss
for cows or calves? While we don’t often think about it, the optimal
level is not zero. Could we achieve zero death loss? Probably yes
or something very close to it, but the last bit of death loss reduction would
require extreme measures for which the costs exceed the benefits and thus is
not optimal. However, the increase in calf values this year means that
additional efforts to reduce death loss are warranted compared to what was
optimal in the past.
This
illustrates the economic principle that every producer should be examining
now: adjust production activities until the marginal benefits equal the
marginal costs. The sharp jump in revenues this year (marginal benefits)
implies that producers should consider a host of marginal changes in production
and costs. This may mean doing more of something you are already doing or
beginning to do something you have not done in the past.
Narrow
measures of technical efficiency often lead to non-optimal decisions. For
example, high calf prices are a motivation to sell more pounds of calf.
However, a narrow focus on weaning weights ignores reproductive efficiency, cow
size and cost of production, and other factors. Maximizing value of
production per acre includes both technical production efficiencies as well as
economic values of inputs and outputs. Maximizing value of production per
acre means evaluating the contributions of a host of cattle and forage
production variables along with the costs of inputs used for production.
Pounds
of calf weaned per exposed female is a technical measure of productivity that
encompasses several other technical efficiency parameters including conception
rates; calving percentage; and pre-weaning calf death loss as well as
weaning weight. To the extent that increasing pounds of calf weaned
is consistent with maximizing the value of production per acre, producers
should consider what changes might impact these production components.
Conception rates may be boosted marginally by having cows in better shape at
breeding. The extra feed required to add one-half to one body condition
score to cows may be worth it this year. Ensuring bull fertility with
breeding soundness exams may avoid decreased or delayed conception.
Ensuring cow and bull health with respect to venereal disease and enhanced
bio-security for new animals entering the herd can avoid abortions and reduced
calving percentage. Cow and calf health programs should be evaluated to
reduce the risk of death loss. Think of the value of increased monitoring of
cows at calving that saves one extra calf this year. These are just a few
examples of questions that need to be asked and answered in all cow-calf
operations.
Most
production factors should be evaluated to see if marginal adjustments are
indicated by increased animal values. The principal market signal at this
time is to have something to sell and producers should consider additional
measures that will enhance productivity of the entire operation.
Cow age and cow
productivity (When is she too old?)
Glenn Selk,
Oklahoma State University Emeritus Extension Animal Scientist
Strong
cattle prices have encourage ranchers to keep any cow that might have a live
calf to sell at the next weaning period. If rainfall allows forage growth
to be adequate, keeping an older cow to have another calf to wean next year is
tempting.
At
cow culling time, producers often face some tough decisions. Optimum
culling of the herd often seems to require a sharp crystal ball that could see
into the future. Is she good for another year? Will she keep enough
body condition through the winter to rebreed next year? Is her mouth
sound so that she can harvest forage and be nutritionally strong enough to
reproduce and raise a big calf? At what age do cows usually start to
become less productive?
There
is great variability in the longevity of beef cows. Breed may have some
influence. Region of the country and soil type may affect how long the
teeth remain sound and allow the cow to consume roughages such as pasture and
hay.
Records
kept by a very large ranch in Florida in the 1980's and published in the 33rd
Annual Proceedings of the Beef Cattle Short Course by the University of Florida
Animal Science Department show how productivity changes over the life of the
beef cows. These large data sets, (19500 cows, and 14000 cows in two
separate years) are plotted below. They indicate the average percentage
of cow determined to be pregnant based on their age in years. These cows
were not pampered but expected to produce in the environment in which they were
kept.
This
data would indicate that cows are consistent in the rebreeding performance
through about 8 years of age. A small decline was noted in 1983 as cows
aged from 8 to 10 years of age. However the most consistent decline in
reproductive performance was noted after cows were 10 years of age. A
steeper decline in reproductive performance was found as they became 12 years
of age. This data, collected in Florida on cows with some Brahman
influence, represents one of, if not the largest data set on this
subject. (Source:Genho, 1984 Proceedings of the Beef Cattle Short
Course. Animal Science Department, University of Florida.)
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