Keep or Sell: 5 Factors That Drive Retained Ownership of Calves
Many producers are still determining whether or not to keep their calves this year. It’s a simple question with several complex factors to consider. But as a producer, there are several benefits to retaining ownership to help you make the right decision for your operation.
5 Factors That Drive Retained Ownership of Calves
1. Improve Cash Flow/Operating Capital
When we work with cow/calf producers, cash flow is the most significant limiting factor to retaining calves. Business models and past practices have been geared toward selling calves at weaning or shortly after. The market pays premiums (or fewer discounts) for calves that have been weaned, vaccinated and started on feed.
FBN® can assist with cash flow by providing financing options and Southwest Veterinary Services, FBN’s official veterinary partner, can help develop vaccination and health protocols with you that add value for the next owner.
2. Utilize Available Feedstuffs
Feed availability, especially in drought-stricken areas, can be the factor that prevents beef producers from keeping their calves at home. Lightweight calves can perform well on several different feeding regimens. Ingredient prices determine the best economic ration to obtain the desired rate of gain.
Rations can be developed utilizing by-products from low-quality products, such as gin trash and wheat middlings, to higher-quality products like DDGs and soybean meal. Forages also come in a range of quality, from corn stalks to silage and alfalfa.
Even with higher corn prices, small calves can convert starch to beef efficiently and cost-effectively. Each situation is different and FBN’s nutrition team can work with you to balance a diet utilizing FBN supplements that fits the feeds available in your area.
3. Consider Labor and Facilities
Labor has become a struggle for many operations. Facilities can also limit a producer’s ability to retain cattle. Understanding the limitations and constraints of labor and facilities is a factor that needs to be considered while developing a feeding plan.
Retaining ownership does not mean the calves must stay on your ranch or farm. If you maintain ownership and send your calves to someone else to feed, ask the feedlot or grow yard if they balance their rations for effective energy and amino acids. If they do not, you may be leaving money on the table and should have them contact FBN’s feedlot nutrition team.
4. Reap the Reward for Genetic Improvements
Why should others get paid for the improvements in your cattle herd? Many ranches have tried to enhance their genetics to increase feed efficiency and improve carcass quality. The market sometimes overlooks this work and the cow/calf producer needs to be appropriately rewarded for their investments.
Retained ownership moves the ranchers a step or two closer to the beef consumer, which increases the probability of maintaining retail dollars.
5. Create a Marketing Plan
Marketing calves come with unique challenges and opportunities at each supply chain step. From grass-fed to all-natural or one of many different post-weaning vaccination programs, starting with the end target market in mind is critical to optimizing the dollar received for your calves.
Animal Health Products from FBN Direct®
FBN Direct offers a broad range of vaccines, dewormers, implants and general animal health products for livestock producers. With convenient online purchasing options and fast, direct-to-farm delivery in three days or less, FBN Direct offers a seamless and streamlined purchasing experience for all your animal health supplies.
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