Justin Waggoner, Ph.D., Beef Systems Specialist
Maximizing calf revenue is important for cattle producers, it’s how they get paid! Just like any business understanding what drives how you get paid is important. Calf revenue from my academic perspective is driven by three factors; 1) the number of calves sold, 2) sale weight of calves and 3) price received.
Cow/calf producers to some extent have control over the number of calves sold and sale weight. The number of calves sold is essentially a function of stocking rate, cow fertility and/or reproduction on an operation. The sale weight of calves is more complex but is a multi-factorial combination of genetics, calving distribution, calf age, nutrition, management and technology use (implants). Price received is likely the most influential of the three factors that drive calf revenue and is the factor that cow/calf producers often believe they have the least ability to control. Once a set of calves enters the sale ring, or appears on the video screen their value is determined by what two prospective buyers are willing to pay. Although it is impossible for producers to directly influence what buyers are willing to pay, I would argue that they are not completely helpless. Cow/calf producers directly control what they sell (weaned calves, value-added calves or feeders), and determine when they will sell. These are difficult,complex decisions, that shouldn’t necessarily be made based upon weekly cattle sale reports or the thoughts of your favorite livestock market commentator. I am not saying that keeping informed about current market conditions isn’t important. However, that information when used with resources like Beef Basis (www.beefbasis.com) that use data to evaluate different market scenarios, from selling five weight calves the first week of October, to seven weights December helps producers make the best decision for their operations.
For more information, contact Justin Waggoner at jwaggon@ksu.edu.
