Data from Oklahoma State University suggest that calves enrolled in a verifiable preconditioning program are likely to bring premiums over those not enrolled in any program.
The data showed that calves in the Oklahoma Quality Beef Network Vac-45 preconditioning protocol received premiums averaging $12.55 per cwt over the 2011-2021 period, said Paul Vining, Oklahoma Quality Beef Network program coordinator in a letter to Extension agents called Cow-Calf Corner.
WHAT IT IS
The OQBN Vac-45 program is a beef calf preconditioning program implemented by OSU Extension in partnership with the Oklahoma Cattlemen’s Association, with the goal of providing a value-added marketing opportunity for cow/calf producers, Vining explained. For calves to become OQBN Vac-45 certified, they must be weaned for at least 45 days and receive two rounds of vaccinations (initial vaccination and booster) against pathogens responsible for bovine respiratory disease and clostridial bacteria that cause blackleg.
In addition to being weaned and vaccinated, calves must be bunk broke, castrated and dehorned before the date of sale, he said. Deworming also is recommended.
How It Works
Extension Agents verify that calves have met program requirements, Vining said. Once verified, calves may participate in OQBN Vac-45 program-sanctioned sales, taking place at various Oklahoma livestock auction facilities.
Each year sale data is collected by Extension professionals for calves participating in the program, other preconditioning programs and calves not participating in a branded preconditioning program, Vining said. This data is useful in identifying and evaluating current market trends and beef calf characteristics.
For 2011-2021, data was collected at 91 livestock sales, which took place at 10 Oklahoma livestock facilities, with an average of eight sales conducted each year, he said. A total of 149,525 calves were described using 42 market characteristics for 12 market traits (the number of assigned characteristics depended on the given trait).
THE BENEFITS
Sale data indicated a decrease over time in the sale of over-conditioned “fleshy” or “fat” calves, with an increase in the sale of calves in “average” body condition, Vining said. Fleshy calves received market discounts, and the decrease in fleshy calves is evidence of improved nutritional management.
The data also show there were increases in the percentage of calves selling as weaned and vaccinated that were not part of a specific preconditioning program, even though there appears to be value in participating in a program of some sort, he said.
So far this year, preconditioned calf sales have started out with considerable premiums over non-preconditioned cattle, he said. The first preconditioned calf sales in Oklahoma for the fall of 2022 have preliminary weighted average premiums of over $15 per cwt.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $150.85 to $156.00 per cwt, compared with the previous week’s range of $151.44 to $155.35. FOB dressed steers, and heifers went for $236.10 to $242.19 per cwt, versus $235.92 to $240.89.
The USDA choice cutout Friday day was down $0.73 per cwt at $251.83 while select was up $1.04 at $234.37. The choice/select spread narrowed to $17.46 from $19.23 with 48 loads of fabricated product and 13 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $2.05 to $2.25 a bushel over the Dec futures and for southwest Kansas were steady at $1.00 over Dec, which settled at $6.68, up 4 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $173.63 per cwt down $0.66. This compares with Friday’s Jan contract settlement of $178.30, down $0.95.