As cattle producers, it is interesting to listen to various conversations and philosophies among fellow cattlemen. For the most part, you hear folks discussing various pros and cons of breeds, what to fertilize with, what type forages do you have, etc. Ask yourself this, how many times do you or others around you talk about profitability and ways to enhance profitability? I guess that we as a group do not really think about the many details that truly affect the bottom line, so we ignore that conversation. As you read this article and the points raised, think about how they apply to your herd. No one cattle herd nor management situation is exactly the same.
We know that many factors affect profit or loss from year to year. Obviously, the market is a major factor that dictates how much or how little profit you make. There have been years that there was little to no profit, and producers lost money. For those who have been in the business for a while, you know that to be true. This year is especially challenging as fertilizer prices have more than doubled, feed prices are up, and so is fuel. On the other hand, cattle prices have the wind in their sails, and the inventory of the national cow herd is down an estimated 2%, according to the National Agriculture Statistics Service.
When thinking about profitability, we need to consider many things. For most of us, we will say that cattle price is the main driver of profitability. The question is, who among us can control the price/market? That answer is none of us, as the cattle industry’s supply and demand drive price. So, what do we do as cattlemen? We focus on the production factors/management techniques that we can control for the most part that affects our bottom line.
The first thing to me that comes to mind that drives profitability is fertility. Fertility should be the highest priority of any cattle breeder. We must first get our cows pregnant, and with that thought, we need to think about what goes into a successful fertility program. We, as cattlemen, must make sure our minerals are balanced and meet the needs of the cow. A cheap mineral will not do it! Have you ever looked at your mineral analysis? What are the ingredients? What do your cows need? If you are not having trouble with fertility, rough hair coats, or grass tetany, you may be safe. It is wise that cattlemen work with your large animal veterinarian or Extension specialist to monitor this throughout the year.
How many of us have a controlled breeding program? Are your calves born in a 45 to 60-day window? Are the calves born year-round? Putting pressure on fertility in the herd is paramount to accomplish a tight calving season. When retaining replacement heifers, select these from the cows that calve in the first 30 days or so of the calving season. This will start to strengthen fertility in future herd replacements. It has long been documented that crossbred females will be more fertile and stay in the herd longer than their straight-bred counterparts. Fertility in a cowherd coupled with a controlled breeding season is paramount. Too many pounds of the calf is lost on a per head basis when year-round calving is done.
Building on the thought of a controlled breeding season also allows you to manage your vaccination and parasite control programs effectively. It is virtually impossible to do this properly and certainly not economically with calves born year-round. This requires too much labor through the chute and repurchasing of vaccines. Once opened, many vaccines must be used immediately and can’t be held over for use for a month or more.
Pasture management is one thing we need to keep in mind. Do we over-graze or under-graze? Will our operation support more animals per acre or fewer in order to optimize production and profit? You, as the owner, must answer that by asking yourself this simple question. How much supplemental feed do I have to buy to properly take care of the cowherd and wean a heavy, uniform set of calves? The need for supplemental feed is to supplement animals for the nutrients the cattle are not getting from pasture forages. The profit in the cattle industry is tight most years, and if you want to lose money, start overgrazing and buying lots of supplemental feed. Work with your pastures and evaluate the body condition of your animals. Study the forages you have and watch the cow herd. Are the females cycling back on time, maintaining flesh and milking to support a healthy calf? If you answered yes, then your forage program and herd management are working.
In thinking about enhancing profit, you can’t forget about the longevity of the animal. What is your culling rate, and why were the mature cows culled? That cow is your factory, and you can’t afford to replace her every 4 to 5 years and be profitable. Longevity is how long that animal is productive and having a calf every year in your herd. A cow in a well-managed herd should stay in production for no less than 8 to 9 years, but in many cases, they are 10 to 12. After that, production does drop for the most part. Many things can shorten a cow’s productive life that you need to monitor. Cattle with a bad disposition, structure, feet, udders, hard doing, poor milking, slow breeding, or poor production records all impact how long she can stay and be profitable in your herd. For the most part, these are genetic factors that can be addressed through proper bull and female selection.
What about cow size, you may ask? This is a long, debated topic. Again, you are the best person to determine this. Your environment is a good indicator of what size cow and the level of fertility and milk production your pastures will support. Again, it comes down to your management, your forage availability, and the nutritional value of the available forage.
Remember, always view your cattle herd as a system. A system made up of genetic selection, forage management, herd health, nutrient supplementation, ruthless culling, marketing, etc. The system is an intricate string of decisions that will make for success, but first, you must go into it with your eyes open. Be honest with yourself when you evaluate your system, and then be on your way to correcting the problems.
This may be a little different way of approaching this topic of profitability but hopefully will spur some reflection and good discussion. If you are in doubt or have questions at times about your operation, I would suggest you work with a successful producer, Extension livestock specialist, and/or Extension agents, as well as the local veterinarian and other industry representatives. Sharpen your pencils and your management skills; this year has a lot of challenges that will affect your bottom line.
Submitted by Steven E. Meadows, Ph.D., Clemson Extension Beef Specialist
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