Livestock and Forages News Articles
Articles published in Arkansas Cattle Business
Animal Science: Today and Tomorrow - July 2007
North Central Arkansas Stocker Cattle Conference
The 2007 North Central Arkansas Stocker Cattle Conference will address
critical issues such as beef cattle market outlook, feeding commodity feeds and
keeping stocker cattle healthy. Mr. James Robb, Director of the Livestock
Marketing Information Center in Denver, will provide the latest regarding what
the future holds for beef cattle prices. Dr. Shane Gadberry and Dr. Jeremy
Powell, University of Arkansas, Division of Agriculture, will discuss when and
how to feed commodity feeds and keeping stocker cattle healthy, respectively.
The program will be held at the North Arkansas College – South Campus, John
P. Hammerschmidt Center in Harrison, AR on August 2, 2007. Registration begins
at 2:30 p.m., and the program concludes at 7:30 p.m. A meal will be provided.
Registration fee is $20. The 2007 North Central Arkansas Stocker Cattle
Conference is sponsored by Farm Credit Services of Western Arkansas.
2000 vs. 2005 Feeder Calf Price Comparison
Animal Science and Livestock Market News conducted two studies to determine
the significant factors affecting the selling price of feeder calves sold in
Arkansas livestock auctions. Data were collected from January 1 to December 31
for 2000 and 2005. In 2000, data were collected on 59,934 lots consisting of
81,703 head, and in 2005, data were collected on 52,401 lots consisting of
105,542 head.
The average selling prices for 2000 and 2005 were $92.91 and $118.32 per
cwt., respectively. Because the average selling prices were so different, prices
are reported as a deviation from their respective yearly average. A positive
selling price means the selling price was higher than the average whereas a
negative selling price means the selling prices was lower than the average.
In 2000, No. 2 muscle score cattle were discounted $9.00 per cwt. compared to
No. 1 muscle score cattle. The discount in 2005 was almost the same ($8.70).
Muscle scored 3 cattle were discounted compared to muscle score 1’s at $21.32
and $22.62 for 2000 and 2005, respectively. Therefore, although the average
prices in 2000 and 2005 were different, the discounts for muscle scores did not
change from 2000 compared to 2005.
Arkansas cow-calf producers produced more large-framed and fewer medium- and
small-framed calves in 2005 than in 2000. In 2005, buyers did not pay the
premium for large-framed cattle as in 2000, but they paid more for medium-framed
cattle. This could be attributed to feeder cattle supplies, or it could be a
sign that the cattle industry is moving back toward a medium-framed calf.
Small-framed cattle were heavily discounted in both years, but a higher discount
was detected in 2005. Therefore, although feeder calf supplies were tight, the
discounts for small-framed cattle were greater.
The cattle breeds or breed types that increased in value as compared to the
average from 2000 to 2005 were Angus x Hereford, Angus, Angus x Charolais.
Whereas, Angus x Limousin, Hereford x Brahman x Angus, Hereford x Charolais,
Brangus, ½ Brahman, Angus x Brahman, Hereford x ¼ Brahman, Hereford x Simmental
breed or breeds types stayed the same as compared to the average from 2000 to
2005. Charolais x Limousin, Charolais, Charolais x ¼ Brahman, Hereford x
Limousin, Limousin, Limousin x ¼ Brahman, Simmental, Saler, ¼ Brahman cross and
Longhorn calves decreased in valued in 2005 compared to 2000.
The only calf colors that increased in frequency from 2000 to 2005 were
black-white face (9.3% to 10.2%), black (24.8% to 35.4%) and gray (5.0% to
7.5%). The colors that received an increase in selling price were yellow-white
face, black-white face, black and gray. White, red-white face and red were
discounted in 2005 compared to 2000.
Arkansas cow-calf producers castrated more bull calves before selling them in
2005 than in 2000 (2000 = 33.2% steers and 2005 40.0% steers). Buyers paid a
higher premium for steers ($6.48 vs. $6.02) and paid less for bull calves ($0.30
vs. $1.68) in 2005 than in 2000. Therefore, market signals to the cow-calf
producer continue to reinforce castration of bull calves.
Although feeder cattle supplies were tight, buyers discounted horned cattle
greater in 2005 (-$2.86) than 2000 (-$0.51). Polled calves brought just about
the average price for both years, but polled cattle received an increased
premium in 2005. Arkansas cow-calf producers produced more polled calves in 2005
(85.8%) compared to 2000 (71.1%).
Arkansas cow-calf producers sold more calves in groups (25.2% vs. 18.8%) and
fewer calves individually (74.8% vs. 81.2%) in 2005 than they did in 2000.
Buyers paid a higher premium for cattle sold in groups in 2005 than in 2000.
Buyers are continuing to send an economic signal for selling calves in groups
rather than individually.
Cow-calf producers can do more to improve the quality and selling price for
the feeder cattle sold through Arkansas livestock auctions. Through genetic
selection and management changes, feeder calf value can be improved and overall
total returns increased. Contact your local
county
Extension agent for additional information.
By: Dr. Keith Lusby and Dr. Tom Troxel
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