Late summer cattle gains

By using the current market for calves and the futures market for feeder cattle, producers can project the value of each additional pound of weight gain through the summer.

David Lalman, Oklahoma State University Cooperative Extension beef cattle specialist, said not to fall into the trap of assuming that added weight is worth the same as market price.

“Since cattle bring fewer dollars per hundredweight as they grow, the value of weight gain is almost always something less than current market price,” he said.

Recently 577-pound calves averaged $121.45 per hundredweight at livestock markets across Oklahoma, representing $695.91 in total value. Currently, 750-pound feeder cattle futures for October closed at $110.40 for a projected feeder value of $132.09($828.00 - $695.91) by the weight anticipated (750 pounds – 577 pounds = 173 pounds). The projected weight gain is $0.76.

“This is substantially higher than what we normally see during the summer months,” Lalman said. “For example, before the steep rise in corn price last fall, a typical value of gain was around $0.55 to $0.60 through the summer months.”

Lalman said an increased value of gain also serves as an incentive to make use of technology that is cost effective.

Deworming cattle with a commercially available anthelmintic product designed to help control parasitic worms is a technology that also can make a difference in cattle performance this summer.

“Response of grazing cattle to anthelmintics is extremely variable,” Lalman said. “However, due to the extreme wet conditions this spring and summer, one would anticipate heavy parasite loads in grazing cattle and in the pastures.”

This is especially true in pastures that had not been kept clean in previous years through the use of strategic deworming practices.

Lalman said growing cattle that are free from parasites generally gain between 0.1 pound and 0.2 pound per day faster when compared to cattle carrying a moderate parasite infestation.

“Let’s assume a response of 0.15 pound per day or 13.5 pounds over a 90-day period and a cost to treat calves with an anthelmintic of about $3.25 per head,” he said. “This cost will vary quite a bit depending on the product you choose to use.”

Lalman said producers should consult with a veterinarian regarding the appropriate timing for treatment and product to use.

The additional 13.5 pounds is projected to be worth about $10 using the projected value of gain calculated above.

“These technologies enhance performance of cattle in difference ways and research indicates that the responses are additive,” Lalman said. “Therefore, a producer has the opportunity to increase performance of stocker cattle and replacement heifers by as much as 0.8-to-1 pound per head per day.”

Knowing the economics of supplementation can be beneficial to a stocker cattle operation.

The Oklahoma Gold program is a high-protein supplementation program that was designed with the needs of stocker cattle in mind. The program is particularly efficient for cattle grazing late-summer forage that is declining in quality as the forage matures.

“This summer in particular, I anticipate that much of our summer grass will be lower quality than normal, even though there will be a lot of it,” said Lalman. “Oklahoma Gold feed contains 36 percent to 40 percent protein and a feed additive, such as Bovatec, Rumensin or CTC.”

Numerous experiments have shown that this program consistently boosts weight gains by 0.5 pound to 0.7 pound per head per day.

Lalman said the feed is designed to be delivered to the cattle at the rate of one pound per head per day.

“However, depending on the feed additive, many producers choose to use an interval feeding approach,” he said.

An example of this is to feed 2.33 pounds on Monday, Wednesday and Friday. Currently, Oklahoma Gold feed can be purchased for around $240 per ton in bulk or $0.12 per pound.

The cost for each pound of weight gain is $0.20, approximately $0.12 feed cost per day per 0.6 pound added weight per day.

Lalman said this does not include additional cost of feed storage, handling and delivery to the cattle.

When using implants for cattle, the cost is roughly $1.50 per head. Lalman said this technology is expected to increase weight gain by about 12 percent above non-implanted cattle.

If non-implanted calves are gaining 1.5 pounds per day, implanted calves would be expected to gain almost 1.68 pounds per day. This comes to approximately 16 additional pounds over a 90-day period.

“Those additional 16 pounds are projected to be worth $0.76 each or $12.16,” Lalman said.

OSU Cooperative Extension Fact Sheets ANSI-3032 “Oklahoma Gold Q&A” and ANSI-3268 “Implanting Beef Cattle” found at http://osufacts.okstate.edu can provide additional information on these topics.

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Katie L. Reim
Communications Specialist
OSU Agricultural Communication Services
140 Agriculture North
Stillwater, Ok 74078
405-744-6792 (Phone)
405-744-5739 (Fax)
katie.reim@okstate.edu

Oklahoma State University, U.S. Department of Agriculture, State and Local Governments Cooperating: The Oklahoma Cooperative Extension Service offers its programs to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, or status as a veteran, and is an equal opportunity employer.