Nine-Year Summary of the Arkansas Steer Feedout Program: Factors Contributing to Value and Return

Professional Animal Scientist, Dec 2006 by Gadberry, M S, Troxel, T R

Abstract

The objectives of this paper were to evaluate 1) factors affecting return above feedlot expenses; 2) characteristics of calves that did (FIT) or did not (NOFIT) fall within a price grid structure based on quality grade, yield grade, and carcass weight; 3) impact of morbidity; and 4) characteristics that impacted initial and final value of calves enrolled in the Arkansas Steer Feedout program. Stepwise regression analysis on 1,917 calves over a 9-yr period indicated quality grade, medical expense, and ADG as significant sources of variation each year. Hot carcass weight and yield grade were significant sources of variation 8 of 9 years. Fifty-eight percent of steers were categorized as NOFIT. Calves categorized as FIT had an 8% greater carcass value and returned $75 more than NOFIT calves (P

Key words: beef cattle, feedlot, health, return, value

Introduction

Arkansas ranks 16th in the nation for number of cattle and calves, and 92% of the state's cattle operations have fewer than 100 head (NASS, 2005a,b). Most of these operations market calves at weaning through a local livestock auction market. Limited animal resources may prevent smaller, yet progressive producers from retaining ownership through backgrounding and finishing phases of the beef production system. Unfortunately, marketing at weaning results in loss of vital production information regarding post-weaning growth performance and carcass merit. In addition, cattle marketed through local livestock market barns receive premiums and discounts based on visual characteristics (Sartwelle et al., 1996; Smith et al., 1999; Troxel et al., 2002). Producers question why their cattle were priced differently and want to know if the price received reflects the true value. The Arkansas Steer Feedout program was initiated to provide cattle producers the opportunity to evaluate postweaning performance and carcass characteristics. This provided an opportunity for cattle producers to evaluate growth performance and carcass quality as a mechanism to determine the direction of future breeding and selection decisions. The objectives of this paper were to evaluate 1) the factors affecting return above feedlot expenses; 2) the performance, carcass composition, and return from calves that did or did not fall within a price grid structure based on USDA quality grade, yield grade, and carcass weights; 3) the impact of morbidity on performance, carcass characteristics, and returns; and 4) characteristics that impacted initial and final calf value.

Materials and Methods

Feedout Program Overview. The Arkansas Steer Feedout program was implemented to provide Arkansas cattle producers the opportunity to evaluate post-weaning performance and carcass merit. The program provided data for individual producers to identify how their cattle fit traits that characterize consumer demand. The program was not promoted as a retained ownership program or operated as a contest. The emphasis was on utilization of the data for making on-farm cattle management decisions. In addition, the cumulative results were used to support statewide educational programs.

Cattle enrolled in the program were snipped to a feedyard in the fall and marketed the following spring when determined to be market ready by the feedlot manager. Beginning in the fall of 1996, the Animal Science section of the Cooperative Extension Service accepted responsibility of the program. From 1996 to 1997, the Arkansas Steer Feedout program worked in cooperation with the Texas A & M Ranch to Rail program by enrolling Arkansas cattle into the Ranch to Rail program. These cattle were managed by Randall County Feedyard near Amarillo, TX (Table 1). Beginning in 1998, the program moved to Neill Cattle Company, Welch, OK. Cattle were finished at Neill Cattle Company until the yard closed in 2001. From 2001 through 2004, cattle were finished at Oklahoma Feeders, Coyle, OK.

In 1997 and 1998, cattle were marketed on a yield and quality grade grid to Excel (Cargill), Amarillo, TX. From 1998 to 2005, cattle were marketed on a yield and quality grade grid to Tyson Foods, Inc. (formerly IBP), Emporta, KS.

The program was limited to a minimum of 5 steers per farm weighing between 250 and 386 kg. An on-farm preconditioning period was strongly suggested prior to shipment to the feedyard, but the details of the preconditioning program were left to the owner's discretion.

Calves submitted to the program were accompanied with an enrollment form. This form provided information regarding calf birth date, color, and the owner's estimate of each calf's breed composition (percentage Brahman, English, continental, dairy, or Longhorn influence). Calves were weighed the morning after arrival at the feedyard and were sorted by the feedyard manager or livestock market reporter into different pens based on phenotype. Calves were processed according to regular receiving protocols at the respective feedyards. Initial feeder values were given to individual calves at weighing. Initial feeder value was omitted from the dataset in 1996 and 1997 because the initial feeder value represented west Texas prices as opposed to Arkansas prices. Beginning in 1999, an experienced Livestock Market News reporter assigned USDA frame scores and muscle scores (USDA, 2000) plus initial values for cattle based on prices observed at Arkansas auction barns during the week cattle were shipped.