Demand for high-quality beef and a tight cattle supply has experts predicting historically high cattle markets for the next several years.^[1]  Widespread liquidation, primarily driven by drought, has resulted in the smallest U.S. cowherd since 1962; tighter supplies of cattle favor strong calf prices at this point in the cattle cycle.

Progressive cattle producers strive to optimize production efficiency through strategic management and marketing decisions. These investments will pay dividends now, and into the future.

Take advantage of the strong cattle markets this year and capture the most value for your calf crop with these three tips:

1. Produce quality cattle

Ultimately, the profitability of your calves begins long before you market them.

High-value calves start with high-quality, healthy cows. Cows pass on quality nutrition to calves through fetal programming and continue through their milk supply after calving.

While it may be tempting during this economy to cut back on input costs, remember the old saying, “You can’t starve the profit out of a cow.” Nutrition is one area where high-return producers don’t cut corners. As a result of their continued investment in nutrition, along with animal health and genetics, the percentage of calves weaned and pounds of calf weaned per cow exposed favors the high-return producer.^[2]

More calves weaned and more pounds-per-calf can translate to a significant boost in your bottom line with strong calf prices.

2. Add value to your calves

The excitement of high calf prices can lure you into wanting to sell calves quickly. But as calves approach weaning age, slow down and evaluate the most efficient value of ownership. Do you want to wean and sell immediately? Wean and take advantage of a 45-day precondition stage? Background calves and market at a heavier weight? Retain ownership through the end?

Take a hard look at market conditions and the marginal value of weight gain to determine how long you should own your calves and the potential benefits of preconditioning or value-added programs for your calves.

Calf health impacts feedlot performance. Preconditioning programs are also designed to reduce losses in weight gain and increase feed efficiency once cattle arrive at their next destination.

As a result, buyers are normally willing to pay a premium for preconditioned calves. Research shows that, conservatively, preconditioning may capture $50 to $75 per head of additional value.^[3] This premium, on top of already strong calf prices, can potentially provide a good return on investment for your time and money spent on preconditioning.

Take the extra steps to qualify calves for value-added programs to help ensure you aren’t leaving any additional money on the table.

Value-added programs have shown their ability to generate additional premiums for weaned calves beyond traditional preconditioning programs. Sale price data compiled by Kansas State University indicates a 4.5% advantage nationally for calves enrolled in a value-added program who are at least 45 days weaned.^[4]

There are several options available, so you can choose the program that best fits your operation. Don’t forget to consider conventional technologies, such as implants and ionophores, and evaluate their potential value compared to the natural programs available.

Purina offers two value-added programs:

• The Purina^® Plus program unlocks optimal performance in calves with a foundation of research-proven nutrition and calf health strategies.
• The Purina^® Wind and Rain^® Mineral Value-Added Program promotes calves fed Wind and Rain^® mineral and raised from dams fed Wind and Rain^® mineral prior to conception through weaning. The high-quality, complete mineral program sets calves up for optimal health and performance into the next phase.

To get the most benefit, enroll in a program that aligns with your management practices and market to buyers looking for the type of calves you produce.

3. Establish strong relationships

Relationships are vital in the cattle industry.

Building a relationship with a representative from your sale barn or video auction team can help ensure your calves are marketed to their full potential. Their marketing team can help sell the added value from the time and effort you’ve put in.

Connect with buyers to gather information on how your cattle perform. Share that performance data with potential buyers and use the data to make adjustments that improve the quality and performance of your cattle in the future.

Reputation cattle are well known. When your cattle consistently do well for buyers, you become a sought-after source for calves. And when the cattle cycle continues and prices aren’t as strong, that reputation may help you remain profitable.

Set your strategy

You work hard to raise quality cattle. Don’t overlook the impact the right management and marketing strategies can have on your bottom line. Take advantage of strong prices to invest in the profitability of your herd for the short- and long-term.

Does your cattle nutrition program stack up? Find out with a Proof Pays trial.