Calf Prices Research Articles

The economic value of beef cattle through AI and natural mating in farmers

The aim of this study was to determine the economic value of beef cattle through Artificial Insemination (AI) with the elite bulls and natural mating in farmers. The study was conducted in Gowa Regency, South Sulawesi Province in 2017, in 2 Sub-districts (Bajeng and Pallangga) and 9 Villages (Pabantengan, Pallangga, Maceni Baji, Ramba, Todotoa, Bajeng City, Marekaya and Paraikatte). The study used a field survey method, by recording data on the development of beef cattle. Mating activity was carried out with AI and natural mating using bulls and semen from Brahman, Ongole, Angus and Bali. All of the female were Bali dams and Bali heifers which ready to mate as many as 119 animals, where 90 dams would be bred through AI, and others 29 dams and heifers through natural mating in each farmer. Primary and secondary data were analysed descriptively, qualitatively, quantitatively, and economically. The results showed that the net profit of farmers who joined AI amounting to IDR. 266,712,000/year, net profits of farmers amounting to IDR.3,292,740/farmer, R/C 1.80. Net profits for farmers participating in natural mating were IDR. 32,027,000/year, the farmer’s net profit of IDR. 1,104,379/farmer, R/C 1.27. The income of farmers from AI calf was higher than the income derived from calves from natural mating. The price of female and male calves were influenced by sire breeds, body weight and calf performance. The beef Bali cattle business, which is breeding through AI and natural mating is economically feasible.

Inherent auction factors that affect the selling price of calves

ABSTRACT This study was performed to determine and quantify the inherent auction factors that affect the selling price of beef calves (weanlings – from six to nine months old). Data on the selling price, location and month of the auction, genetic group, lot size live weight, and sex of animals were collected in 148 auctions from January 2004 to December 2014. A total of 4,312 lots corresponding to 48,588 calves were classified into seven genetic groups according to their phenotypic [...]

An economic comparison of pasture-based production systems differing in sward type and cow genotype

The objective of this study was to compare the economic performance of 2 sward types [perennial ryegrass (PRG; Lolium perenne L.) sown with or without white clover (Trifolium repens L.)] grazed by 3 cow genotypes. Physical performance data were collected from a 4-yr systems experiment based at Clonakilty Agricultural College, Clonakilty, Co. Cork, Ireland. The experiment compared 2 sward types (PRG-only swards and PRG-white clover swards), with each sward type being grazed by cows from 3 genotypes [Holstein-Friesian (HF), Jersey × HF (JEX), and Norwegian Red × JEX (3-way)]. All systems were stocked at 2.75 cows/ha with fixed fertilizer applications and concentrate supplementation. The data supplied 6 production systems (2 sward types × 3 cow genotypes). The production systems were modeled using the Moorepark Dairy Systems Model (stochastic budgetary simulation model) under 2 scenarios, one in which land area was fixed and one in which cow numbers were fixed. The analysis was completed across a range of milk prices, calf prices, and reseeding programs. The analysis showed that in the fixed-land scenario with a milk price of €0.29/L, adding white clover to PRG swards increased profitability by €305/ha. In the same fixed-land scenario, JEX cows were most profitable (€2,606/ha), followed by 3-way (€2,492/ha) and HF (€2,468/ha) cows. In the fixed-cow scenario, net profit per cow was €128 greater for PRG-white clover swards compared with PRG-only swards. In this scenario, JEX was the most profitable per cow (€877), followed by HF (€855) and 3-way (€831). The system that produced the highest net profit was JEX cows grazing PRG-white clover swards (€2,751/ha). Regardless of reseeding frequency or variations in calf value, JEX cows grazing PRG-white clover swards consistently produced the highest net profit per hectare.

200 Effect of value-added health protocols within region on the sale price of beef calf lots sold through summer video auctions from 2010 through 2018

Abstract The objective was to quantify effects of value-added health protocols within region on sale price of beef calf lots sold through video auctions while adjusting for all other factors that significantly influenced price. Descriptive characteristics of lots were obtained from a livestock video auction service in an electronic format. Data were available on 43,242 lots sold through video auctions from 2010 through 2018. All lot characteristics that could be accurately quantified were used to develop a multiple regression model that evaluated effects of independent factors on sale price using a backwards selection procedure. A value of P < 0.05 was used to maintain a factor in the final model. A lot was categorized into one of five health programs: 1) VAC 34 or 34+, 2) VAC 45 or 45+, 3) Weaned: viral vaccinated, 4) Non-weaned: viral vaccinated, and 5) VAC 24. Calf lots originated from one of five U.S. regions: West Coast, Rocky Mountain/North Central, South Central, Southeast, and Northeast (excluded due to few lots). In the West Coast, lots qualifying for VAC 45 or 45+ and Weaned: viral vaccinated sold for similar (P = 1.00) prices ($168.71 and $168.80/45.36 kg BW, respectively), but at prices greater (P < .0001) than calves administered all other health protocols within that region. Within the Southeast region, lots qualifying for VAC 45 or 45+ and Weaned: viral vaccinated sold for similar (P = .16) prices ($168.37 and $169.28/45.36 kg BW, respectively), and again at prices greater (P < .0001) than calves in all other health programs. In both the North Central and South Central regions, lots meeting the requirements for VAC 45 or 45+ sold for the greatest (P < 0.05) price ($175.25 and $171.80/45.36 kg BW, respectively). Differences in sale price of calves qualifying for various health protocols suggests the value of these programs perceived by buyers varies by region.

An Evaluation of Historical Trends in New Mexico Beef Cattle Production in Relation to Climate and Energy

In support of Food-Energy-Water Systems (FEWS) analysis to enhance its sustainability for New Mexico (NM), this study evaluated observed trends in beef cattle population in response to environmental and economic changes. The specific goal was to provide an improved understanding of the behavior of NM’s beef cattle production systems relative to precipitation, temperature, rangeland conditions, production of hay and crude oil, and prices of hay and crude oil. Historical data of all variables were available for the 1973–2017 period. The analysis was conducted using generalized autoregressive conditional heteroscedasticity models. The results indicated declining trends in beef cattle population and prices. The most important predictors of beef cattle population variation were hay production, mean annual hay prices, and mean annual temperature, whereas mean annual temperature, cattle feed sold, and crude oil production were the most important predictors for calf population that weigh under 500 lb. Prices of beef cattle showed a strong positive relationship with crude oil production, mean annual hay prices, rangeland conditions, and mean annual precipitation. However, mean annual temperature had a negative relationship with mean annual beef prices. Variation in mean annual calf prices was explained by hay production, mean annual temperature, and crude oil production. This analysis suggested that NM’s beef cattle production systems were affected mainly and directly by mean annual temperature and crude oil production, and to a lesser extent by other factors studied in this research.

Effect of health status upon arrival at a single milk-fed veal facility on breakeven purchase price of calves

Male calves are purchased from the dairy industry in North America to produce red meat. The price paid for male calves varies widely, and it is unclear which variables influence the price paid for each calf. The objective of this study was to assess how the health traits of calves at the time of arrival and demographic variables affect the breakeven purchase price of a male calf entering the veal industry. A financial model was constructed using the prevalence of health abnormalities, weight at arrival, source of the calf, number of days in the barn, base carcass price, days to mortality, feed costs, season at arrival, interest rate, housing location, carcass dressing percentage, and costs associated with housing, labor, utilities, trucking, and health to calculate the breakeven purchase price and an estimate of profit. Sensitivity analysis was conducted using health variables measured at arrival and demographic variables, including season at arrival and housing location, to identify the factors with the largest impact on the predicted average daily gain, early and late mortality risk, breakeven purchase price, and profit. At the baseline inputs, the average calculated profit was -$5.36 per calf and it was most sensitive to the location of housing where calves were fed and the body weight of the arriving calf. The mortality risk in the first 21 d after arrival (early) was calculated to be 2.2%, whereas the risk of mortality after 21 d (late) was 3.7%. The risks of early and late mortality were most sensitive to the level of dehydration measured at arrival and the season at arrival for the purchased calves, respectively. The calculated average daily gain was 1.12 kg/d and it was most sensitive to housing location. The breakeven purchase price was calculated to be $242.49 per calf, which was most sensitive to the housing location where the calves were fed. The results of this analysis demonstrate that veal producers need to consider many variables before purchasing calves. In addition to overall market conditions, veal producers should factor health characteristics and the expected performance of the calves they purchase into what they are willing to pay for them.

Breed composition affects the sale price of beef steer and heifer calves sold through video auctions from 2010 through 2016

ABSTRACT Objective The objective was to quantify the effect of breed composition on sale price of steer and heifer calves sold through a single livestock video auction service from 2010 through 2016. Materials and Methods Data were available from steer (29,103 lots) and heifer (18,955 lots) calves sold in 164 unique video auctions through one livestock video auction service. A multiple regression model using a backward selection procedure was developed for each calf sex to quantify effects of independent factors on sale price. A value of P Results and Discussion Breed description of steer and heifer calf lots affected sale price (P Implications and Applications Sire breeds selected, buyer preferences, and marketing venues of both steer and heifer calves should be considered holistically by producers so maximal calf values are realized when sold.

Assessment of Profitability and Break-Even Points in Suckler Cow Herds

Suckler cow enterprises comprise an important segment of Czech agriculture, and the number of suckler cows has been steadily increasing in recent years. The objective of this study was to assess the profitability of suckler cow herds in the Czech Republic based upon data collected for 2014, 2015, and 2016 using a questionnaire covering production, reproduction, and economic traits. The average yearly costs reached 30,583 CZK per cow. When subsidies in the average amount of 14,347 CZK per cow were included, profitability of 8.3, 8.7, and 6.3 % was observed in 2014, 2015, and 2016, respectively. Feed, labour, depreciation, and overheads were the largest cost items and together comprised 66 % of total yearly costs. The data obtained proved the economy of scale. Average break-even points were determined for the number of weaned calves, calving interval, and selling price of calves (75 calves, 465 days, and 56 CZK/kg live weight, respectively). A sensitivity analysis identified the number of weaned calves, price of calves, calving interval, and amount of subsidies as the most influential parameters.

A hedonic analysis of sale lot traits affecting calf prices in Mississippi auction markets

ABSTRACT The objective of this study was to quantify lot trait influences on calf prices at Mississippi auction markets. From May 2014 to 2015, 21,128 calf lots at 4 auctions were evaluated. With price differentials relative to BCS 1 to 3, premiums (P

Phenotypic and genotypic characteristics on calves’ sale price on the western border of the state of Rio Grande do Sul, Brazil

ABSTRACT: The demand for beef cattle with specific traits is evident from sales in auctions. While purchasing, buyers consider individual traits (e.g., muscularity, frame, racial composition, and weight) as predictors of quality, and adjust their bids according to their preferences. The present study aimed to evaluate the effect of phenotypic and racial characteristics in determining the final sale price of calves of beef cattle in official auctions at the western border of the state of Rio Grande do Sul, Brazil. Five-hundred and seven lots of calves sold in calf auctions from five cities on the western border of Rio Grande do Sul were evaluated. The assignment of visual scores was based on their genetic group, frame, muscularity, and coat. Analysis of variance and the Tukey test at 5% significance level were performed for comparing the final average prices. Variables with the greatest impact on price were the genetic group and the size of the animals. Animals of synthetic breeds obtained higher value in the three years studied and animals without racial definition showed considerable devaluation and a decrease in supply. Larger animals had less value.

Bioeconomics of sexed semen utilization in a high-producing Holstein-Friesian dairy herd

A bioeconomic, stochastic spreadsheet model, that included calculation of the net present value of the additional value of all future descendants resulting from increased selection intensity, was developed to study the profitability of using sexed semen in a high input-high output dairy herd. Three management strategies were modeled: (1) only heifers inseminated with sex-sorted semen and cows inseminated with unsorted semen; (2) both heifers and cows inseminated with sex-sorted semen; and (3) a reference scenario, in which all breeding females were inseminated with unsorted semen. A Monte Carlo simulation (@risk software, Palisade Corp., Ithaca, NY) was run to study the sensitivity of net profit and sexed semen advantage to key input parameters. Most input parameters were given truncated normal distributions, whereas the maximum numbers of inseminations in heifers and cows were given discrete distribution functions. The calculated intensity of selection accounted for the different numbers of dairy females born for each of the 100,000 iterations. Using sexed semen (X-sorted, female) was shown to be profitable, with insemination of both heifers and cows being most profitable. The returns on assets were higher when only heifers were inseminated with sexed semen (8.54% ± 2.94; ±SD) or all females were inseminated with sexed semen (8.85% ± 2.93) than when all females were inseminated with unsexed semen (8.38% ± 2.95). The range in net profit was most sensitive to the assumed distributions of milk protein price (€/kg), milk fat price (€/kg), cow pregnancy rate, fertilizer price (€/t), and concentrate price (€/t) when unsorted semen was used. When only heifers or both heifers and cows were inseminated with sex-sorted semen, the range in net profit was most sensitive to the same distributions, with fertilizer price and cow pregnancy rate in reverse order of sensitivity. However, the range in sex-sorted semen advantage (in net profit) when only heifers were inseminated with sex-sorted semen was most sensitive to the assumed distributions of cow pregnancy rate, sex-sorted semen pregnancy rate as a percent of unsorted semen rates, standard deviation of index, additional cost of sex-sorted semen (€/dose), dairy bull calf price (€/head), and dairy heifer calf price (€/head). When both heifers and cows were inseminated, the order of importance of the last 2 inputs was reversed. This study highlights the relatively high effect of pregnancy rate and the genetic value of dairy bulls in determining the level of financial advantage from using sex-sorted semen in a dairy herd.

Financial Feasibility Study for The Use of KUPS Credit Scheme on Balinese Cattle Farming (A Case Study in a Farming Group “Satwa Winangun” of Tangkas Village in Klungkung Regency)

This research aims to determine the financial feasibility on the farming business of breeding balinese cattle who uses KUPS Credit Scheme. Data was collected through observation and interview. Respondents were all members of the “Satwa Winangun” farmers in Tangkas village, Klungkung Regency. Financial feasibility is determined by evaluating the eligibility criteria such: NPV, Net B/C, IRR, and payback period. The assessment was based on 2 calculation systems, (1) calculation of cash costs in which forage and labor are not calculated as the cost (existing condition), and (2) total cost calculation, in which two components are calculated as cost. Based on the calculation of cash costs, cultivation of Bali cattle by utilizing KUPS credit in this village is financially feasible to be implemented. This was indicated by the NPV value of Rp. 274.103.000, IRR 20.16%, Net B/C 1.55, and investments has been able to return within 3.52 years. The result of sensitivity analysis shows that as far as KUPS interest rate is lower than 18.37% per year, this farming is still financially feasible. Breakeven point can be achieved when the number of cattle parents maintained is 37, or when the price of calves at the age of 6 months is an average of Rp. 1.764.022 per cattle. However, based on the calculation of total cost, this farming system is not financially feasible. This is shown by the negative NPV of Rp. -285.721.000, IRR 2.87%, and Net B/C 0,54. This farming system is not financially feasible despite the 0% / year KUPS rate. The break-even point can be reached when the price of calves at the age of 6 months averages Rp. 4.288.367 per cattle.

Genetic parameters for market price, body weight and body measurements of the Japanese Black beef calves in Tokachi, Hokkaido

Genetic parameters for market price, body weight and body measurements of the Japanese Black beef calves in Tokachi, Hokkaido

259 Relationships between beef bull sale prices and feeder calf price in Virginia

259 Relationships between beef bull sale prices and feeder calf price in Virginia

Analisis Sensitivitas Usahatani Pembibitan Sapi Potong di Kabupaten Sleman

<p><em>The research was conducted to investigate financial condition of farmers when the calf price was adjusted to sold age of cattle breeding farm. Research was done from January to May 2007, located in Sleman District. Survey methods was done to collect primary data at the farm level and secondary data from related institution. Purposive sampling was applied to sellect farmers’ respondent. Based on the assumption that management of cattle, i.e. calving interval could be improved up to 15 months and 18 months of calf selling age, the sensitivity analysis showed that the most feasible investment of beef cattle breeding farm under farmers’ condition was achieved when farmers keep Limousine grade cattle with the value of net present value (NPV) = Rp. 14.443.576,00, internal rate of return (IRR) = 29,70% dan benefit cost of ratio (BCR) = 1,84, followed by Simmental and Ongole grade cattle.</em></p><p><em> </em></p><p><em>Key words : cattle breeding farm, sensitivity analysis</em></p>

Analisis Sensitivitas Usahatani Pembibitan Sapi Potong di Kabupaten Sleman

<p><em>The research was conducted to investigate financial condition of farmers when the calf price was adjusted to sold age of cattle breeding farm. Research was done from January to May 2007, located in Sleman District. Survey methods was done to collect primary data at the farm level and secondary data from related institution. Purposive sampling was applied to sellect farmers’ respondent. Based on the assumption that management of cattle, i.e. calving interval could be improved up to 15 months and 18 months of calf selling age, the sensitivity analysis showed that the most feasible investment of beef cattle breeding farm under farmers’ condition was achieved when farmers keep Limousine grade cattle with the value of net present value (NPV) = Rp. 14.443.576,00, internal rate of return (IRR) = 29,70% dan benefit cost of ratio (BCR) = 1,84, followed by Simmental and Ongole grade cattle.</em></p><p><em> </em></p><p><em>Key words : cattle breeding farm, sensitivity analysis</em></p>

Economic efficiency of suckler cow herds in the Czech Republic

The objective of the study was to assess the profitability of suckler cow herds located in different regions of the Czech Republic. Data on 2164 suckler cows were collected for 2013 from 20 beef farms using a questionnaire and the covered production, reproduction, and economic traits. Model calculations were used to determine the level of profitability with support payments either included (2.15%) or excluded (−45.5%). Break-even points defined as the points when the operation reaches zero profitability were estimated for the number of calves weaned and sold (81 calves/100 cows) and for the selling price of calves (54.6 CZK/kg). Fixed cost as a proportion of the total costs was reduced with the increasing herd size. Based on the results of a sensitivity analysis, the selling price for calves, the number of calves weaned the calving interval, and the amount of support payments were identified as the factors with the highest impact on the overall herd profitability.

Factors affecting the selling prices of calves in auctions in Santa Catarina State, Brazil

The objective of this study was to investigate the effects of genetic group and calf sex on selling prices in auctions in the state of Santa Catarina (SC), Brazil. We evaluated 33,143 animals, representing 3,587 lots in 47 auctions from 2009 to 2014. The calves were classified according to genetic groups: British breed or crossbreed (BX); Continental breed or crossbreed (CX); Zebu breed or crossbreed (ZC); British and Continental crossbreed (BC); and Bos taurus and Bos indicus crossbreed (TI). The lots were composed of male and female calves. The years presenting low and high changes in the price of calves were similar to the variation in the price of beef cattle and, in 2014, the calf price reached its highest value (R$5.36). Male calves were sold at prices higher than female calves (average 7.8%), but this difference was driven by year of analysis, in which the closest approach occurred during periods of reduction in the price of live cattle in SC (2012 and 2013). Calves of genetic groups ZX and TI received, on average, lower prices (R$4.49 and R$4.64, respectively) compared with the other groups. In 2013, males from the BX group had greater variation in price compared with CX (3.9%) and BC (5.7%). On the other hand, female heifers from the BX group received higher average prices in 2011 compared with the CX, BC, IT, and ZX groups (8.1, 8.5, 14.7, and 16.5%, respectively). Recently, female British heifers have had a greater appreciation in auctions held in SC, possibly for their reproductive performance potential of beef cows. Thus, sex and different genetic groups are factors that impact the selling price of calves in the SC region.

RISK AND RETURNS OF SPRING AND FALL CALVING FOR BEEF CATTLE IN TENNESSEE

Abstract:We determined the profitability and risk for spring- and fall-calving beef cows in Tennessee. Simulation models were developed using 19 years of data and considered the seasonality of cattle prices and feed prices for least-cost feed rations to find a distribution of net returns for spring- and fall-calving seasons for two weaning months. Fall calving was more profitable than the spring calving for all feed rations and weaning months. Fall calving was also risk preferred over spring calving for all levels of risk aversion. Higher calf prices at weaning were the primary factor influencing the risk efficiency of fall calving.

Shrink in Beef Cattle: A Marketing Consideration

Shrink in beef cattle is weight loss that occurs between an animal’s departure from one location and weigh-in at another. Shrink in beef calves constitutes a potential economic loss to both the seller and the buyer if it is not fully considered. This 3-page fact sheet discusses factors that affect shrink and the effects of shrink on calf price. Written by Matt Hersom, Todd Thrift, and Joel Yelich, and published by the UF Department of Animal Sciences, December 2015. AN322/AN322: Shrink in Beef Cattle: A Marketing Consideration (ufl.edu)