Consider Keeping and Feeding Open Cows Until Early 2008
Sep 24, 2007 9:40 AM
By Jason K. Ahola, University of Idaho
Take advantage of the seasonality of the cow market through creative management and marketing
The economic benefits of feeding market cows are actually three-fold. However, really only two of these advantages are occurring in today’s marketplace. In addition to selling cattle on a higher market (about $4-6/cwt higher, depending when cows are sold), producers also sell more pounds at the higher price (150-250 lbs per cow if fed for about 100 days, along with improved dressing percent of 5 percentage points or more).
The third benefit comes via improved carcass quality. If reasonably-priced grain is available, carcasses from young market cows can be “upgraded” to meet demand for an expanding market known as the “White Cow” market. Unfortunately, consistent premiums are not yet available for these carcasses in today’s market.
The White Cow Market
The White Cow grade is not an official USDA quality grade, but rather is used by packers to roughly identify carcasses from cows that have marbling, white fat (not yellow), and relatively bright red lean color. A few major market cow packers are beginning to pay a premium for these cattle on-the-rail (when sold on a carcass weight basis). Although this premium is not reported to USDA, it appears to range from $5-10/cwt of carcass weight (or about $40-80/head depending on carcass weight).
Generally, the middle meats (ribs and loins) from White Cow Carcasses are being used to supply low-priced steaks to the food service industry that appear to be higher in quality and more palatable than traditional non-fed market cow beef.
The production of a White Cow requires feeding market cows a high concentrate diet for about 70-120+ days prior to slaughter. This can improve the quality of the carcass through increased marbling, muscle tissue replenishment (including ribeye area), and by changing fat color from yellow to white.
The Bottom Line
Feeding-out market cows through the winter may not be the best decision for all producers. However, researchers have shown consistent profits of at least $60/head when healthy and sound cows that are in thin or moderate body condition were fed.
Prior to starting a cow feeding program, producers should consider several key factors, including: the seasonality of market cow prices, the differential between carcass and live cow prices, price differences between market cow grades (including a possible premium for White Cows), and the cost of feeding market cows.
Finally, since feed is the primary cost involved in feeding out market cows, producers should lock-in feed prices prior to feeding any cows as well as determine in advance who will be buying their fed cows when they are ready to be sold in late winter or spring.
Dr. Jason K. Ahola is a State Beef Extension Specialist with the University of Idaho, based at the Caldwell Research and Extension Center in southwestern Idaho. Contact him at jahola@uidaho.edu or 208-454-7654.
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