How to Market Feeder Calves

Many factors contribute to the market price of feeder calves.

Today numerous options are available to those looking to market feeder calves. Many factors come into play in determining how to yield the biggest profit and choose the most cost-effective way to sell your cattle. Deciding when to sell the calves, the health and size of the cattle, as well as the quality and characteristics are just a few factors which establish market price. A market analysis should be run to calculate the cost benefit of management practices, such as pre-conditioning. And before selling, investigate the myriad of outlets available. For a successful sale, all aspects should be considered.

Instructions

1. Determine the most cost-effective pre-conditioning approach. In a study published in the October 2008 New Mexico State University College of Agriculture and Home Economics circular, researchers define conventional pre-conditioning programs as: vaccinations against clostridial and respiratory diseases, parasite control, castration and dehorning, as well as weaning calves three weeks prior to shipping and training them to eat from a feed bunk and drink from a trough. The publication provides information needed to consider the various options.

2. 

   Collect data to estimate the value of your cattle.

   Collect data on your cattle. According to Certified Hereford Beef, important factors in estimating the value of feeder calves include: quality, uniformity, flesh, weigh-up, documented health program and past-performance information. Quality: the cattle must have stretch, muscle and bone. Uniformity: cattle are like in kind, weight, size and same sex. Flesh: the calves must appear light to moderately fleshed. Weigh-up: calves with less feed and water in them at time of sale are worth more. Health: a documented health program is more valuable. Past-performance: this includes history of shrink, feed yard performance, carcass merit, and how fast they feed on the feedlot.

3. 

   A break-even analysis helps determine the best time to sell your calves.

   Perform a break-even analysis to figure out the optimal time to sell your cattle. According to the Government of Alberta’s Department of Agriculture and Rural Development, it can be difficult to decide whether to sell them after weaning, background them to a heavier weight or finish them for slaughter. Feed costs may, or may not, offset the premium received for adding weight to the calves. The Department of Agriculture and Rural Development website provides a break-even worksheet to run the numbers.

4. Calculate the price history of cattle in your state or other surrounding states to determine the potential value of your calves. BeefBasis.com provides an interactive program which allows you to input information about your cattle to create a market analysis.

5. Compare all marketing options when you are ready to sell. Various avenues, ranging from simple to complex, are available. Examples include: traditional auction, Internet and video sales. Producer “pooling,” ranch sales and partnerships are other alternatives. A description of marketing options can be found on the Certified Hereford Beef website.

Tips & Warnings

• Make sure you retain certified copies of any vaccination records to present to potential buyers.

References

• New Mexico State University Cooperative Extension Services College of Agriculture and Home Economics; Preconditioning Beef Calves; Clay P. Mathis et al.
• Certified Hereford Beef: Marketing Feeder Cattle
• Government of Alberta Department of Agriculture and Rural Development: Economics and Marketing: Breakeven Analysis for Feeder Cattle
• BeefBasis.com: Market Data