BEEF COW CALF & SEEDSTOCK INDUSTRY

1. BEEF COW CALF & SEEDSTOCK INDUSTRY By David R. Hawkins Michigan State University

2. OVERVIEW • The cow calf segment of the U.S. beef industry is the largest segment with over 814,000 producers. • The seedstock industry is a specialized segment of about 120,000 producers who supply herd bulls and replacement females for the commercial cow calf segment.

3. OVERVIEW • Average beef cow herd size in the U.S. is about 38 cows. • Therefore, it is a part-time enterprise for most producers. • The cow calf industry uses large quantities of pastures and harvested forages. • Little grain is fed except for replacement heifers and young bulls.

4. LARGEST U.S. COW CALF HERDS IN 2001 1. Deseret Ranch, Florida - 40,000 cows 2. J.R. Simplot, Idaho - 32,500 cows 3. King Ranch, Texas - 25,000 cows 4. Lykes Brothers, Florida - 20,550 cows 5. Parker Ranch, Hawaii - 18,000 cows 6. Briscoe Ranch, Texas - 17,000 cows 7. Matador Ranch, Kansas - 15,000 cows 8. Silver Spur Ranch, Wyoming - 15,000 cows

5. LARGEST U.S. SEEDSTOCK HERDS in 2001 1. Leachman Cattle Co., Montana – 3,340 calves 2. Stevenson/Basin Inc., Montana - 2,900 calves 3. Summitcrest Farms, Ohio – 1,939 calves 4. DeBruycker Charolais, Montana - 1,600 calves 5. Express Ranches, Oklahoma - 1,575 calves 6. Sitz Angus Ranch, Montana – 1,450 calves 7. Camp Cooley Ranch, Texas - 1,331 calves 8. BB Cattle Co., Connell, WA – 1,316 calves

6. Angus - 260,907 Hereford - 84,989 Limousin – 48,825 Simmental – 43,073 Charolais – 42,738 Red Angus – 39,636 Beefmaster – 32,263 Brangus – 26,898 Gelbvieh – 26,265 Shorthorn – 18,579 Brahman - 18,000 Maine-Anjou – 12,219 S. Gertrudis - 10,500 Salers - 10,286 Tx. Longhorn – 6,300 Chianina – 6,280 BREEDS OF BEEF CATTLE2000 Registrations

7. SEEDSTOCK INDUSTRY • It is a small but highly visible & specialized segment. • Only about 2% to 3% of U.S. beef cattle are registered purebred cattle. • In theory, the seedstock industry should be concerned with the same traits that are important to the commercial industry since it is supplying the genetics for commercial herds.

8. SEEDSTOCK INDUSTRY • It has a higher investment in cows and bulls, but has the potential to sell breeding stock at a much higher value than slaughter value. • This segment tends to be an early adopter of new technology. • Artificial insemination and embryo transfer. • National genetic programs to generate EPDs. • Ultrasound and carcass data collection.

9. SEEDSTOCK INDUSTRY • Participates in many promotional activities. • Showing and exhibitions. • Advertising in breed and trade publications. • Participation in bull testing & sire evaluation programs. • Consignment and production sales. • Host and sponsor many youth related activities. • Average length of time in business is 5 to 7 years.

10. SEEDSTOCK INDUSTRY • Cattle produced in these herds are sold to other seedstock breeders, commercial cow calf breeders or enter the normal beef chain. • Historically, this segment has had wider swings in type than the commercial herds. • This segment is more likely to have extensive record keeping systems, computers, etc. • The owners tend to make an above average commitment of time and resources to the industry.

11. COMMERCIAL COW-CALF • Primary product is a weaned calf weighing 450 to 500 lbs. at 7 months of age. • Economics usually dictates that the calf is sold, but we are starting to see some retained ownership. • Most herds raise their own replacement heifers. • Some of these herds also background cattle, especially if they have abundant forage.

12. COMMERCIAL COW-CALF • Most herds use natural service with bulls. • Artificial insemination • Less than 5% of cows in commercial herds. • Up to 40% of cows in seedstock herds. • Calving season may extend over 120 days, but 60 days would be preferred. • Calves are more uniform if similar in age.

13. CALVING SEASON • Michigan is a spring calving region. • Jan. & Feb. 7.3% - May 17.1% • March 24.2% - Other 11.8% • April 39.7% • Southern states may calve in the fall to avoid hot weather. This tends to even out the supply of cattle for feedlots.

14. BREEDING SYSTEMS • Straight breeding means mating a bull to cows of the same breed. • Crossbreeding means using several breeds. • Will increase pounds of calf weaned per cow exposed to service. • Heterosis or hybrid vigor • Breed complementarity • Crossbreeding is most effective when superior purebred cattle are used in a “planned” program.

15. MICHIGAN COW-CALF NUTRITION • Feed costs are the largest single component of annual cow costs. • Pasture (5/15 to 10/30) – 165 days • 1 to 5 acres per cow calf pair. • Harvested Forage (11/1 to 5/14) – 200 days • Corn stalk residue – 30 to 60 days • Grass legume hay or silage – 140 to 200 days • Fresh water & free choice mineral supplement.

16. COMMON NUTRITIONAL PROBLEMS of BEEF COWS • Thin Cows • Body Condition Scores (1 to 9) – 5 to 6 is ideal. • Calving difficulty and delayed rebreeding. • Fat cows • Calving difficulty and reduced Milk Flow • Legume Bloat • Grass Tetany

17. 1995 NATIONAL SPA AVERAGES • Calf Crop Weaned 84% • Average Weaning Weight 512 lbs. • Lbs.weaned/Cow Exposed 431 lbs. • Annual Cow Cost $ 397 • Breakeven Calf Price $ 93/ cwt. • Investment Per Cow $ 1,977 • Lbs. of Feed / Cow 2,505 lbs.

18. HOW TO IMPROVE PROFIT • Improve Reproductive Rate. • Wean Heavier Calves. • Wean Higher Value Calves. • Develop Alliances & Retain Ownership. • Reduce Cow Herd Costs. • Most of the rest of this course will deal with trying to solve the above challenges.