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suggests the use of reproductive technologies can be a significant
piece. “Really, it’s about profitability. If possible, the routine
commitment to the use of estrus synchronization, ideally with
artificial insemination, year in and year out. And along with
that, the commitment to having a defined breeding season. And
finally, marketing and culling open or late conceiving animals
while keeping early conceiving replacement heifers. If you package
those three things together, it results in such a productive herd
in terms of pounds of calf weaned per cow exposed, and it really
pushes all these production methods we know are associated with
profitability in the right direction.”
Creating the Snowball Effect over Time
Thomas says breeding strategies are inherently a gradual process over
time. “I like people to think of it as a positive snowball effect. We’re
used to thinking of snowball effects as a negative with the snowball
running downhill and getting bigger and bigger. Reproduction is one
of the few situations in agriculture where we have the potential to set
up a snowball that really works in a positive way.”
He sees the combination of a shortened breeding season and
culling females conceiving late, working together to create a
more precise calving season each year. “Even if I just make that
commitment every year, I am setting up this positive snowball. And
the major opportunity to really get things going even faster is to use
reproductive technology such as synchronization of estrus. Whether
we use AI or not, just the use of estrus synchronization can jump
start some of these animals, allowing them to conceive earlier in the
breeding program, thereby getting the snowball moving even faster
year to year.”
For cow-calf operators to first identify and then employ small
tweaks or major changes to their operations, Thomas urges them
to start with the reproductive side while steering the basics of
conditioning, nutrition and health. “You may be looking at different
traits, at different breeds or different lines tailored for certain goals,
but ultimately the reproductive performance goal is always maximum
attainment of pregnancy as early as possible while controlling costs in
a profitable way.”
It’s one of the few investment options available to farmers and
ranchers, providing on-going gains in both performance and
profitability and satisfying the need for change in the first place.
ABOUT THE AUTHOR: Bruce Derksen has worked in Western
Canada’s ranching and feedlot industry for more than 30 years. In
his spare time, he writes about present day agriculture related topics,
hoping to give today’s producers as much up to date information
about the future of the industry as possible.
CATTLE FEEDING RETURNS
Estimated cattle-feeding returns tend to be quite variable; this year
looks like it will bring more of the same. Assuming a cattle feeder
sells the same number of animals each month, the balance of 2020
is expected to mostly be profitable, even with the recent collapse
in cash fed-steer prices. On average, February’s estimated closeout
profitability was not as good as expected just a month ago and came
in below January’s.
The Livestock Marketing Information Center (LMIC) has
been estimating monthly cattle-feeding returns since the mid-
1970s. Those estimates assume feeding out a 750-pound steer in
a commercial Southern Plains feedlot and include all costs of
production. The estimates are not survey-based and presume normal
weather conditions. Cash prices are used (i.e., fed-cattle prices and
feedstuff costs are not hedged).
In 2019, those monthly returns averaged about $9.50 per steer,
ranging from $180.92 for an animal sold in December down to
-$152.85 for September. During the prior five years (2014-2018),
the annual average was about $23.00 per steer. The 10-year average
was about -$7.00. On average, for steers closed out during January
of this year, the LMIC estimated profitability at $150.00 to $151.00
per head.
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Read the full March 3 report online at www.dailylivestockreport.com.
—Adapted from a report by Len Steiner, Steiner Consulting Group.
• APRIL 2020