CATTLEFAX TRENDS
WEANING AND VACCINATING
Benefits
There is a long list of qualities that influences the price of calves. The trend of the calf market basically sets the “base” price, but the different attributes, or lack thereof, dictates whether a premium or discount is applied. Genetic makeup, flesh, frame, location, and participation in value added programs, such as NHTC or Verified Natural, are examples of accolades that differentiates groups of calves. The following discussion will focus on vaccination and weaning programs, which also impacts the value of calves. When market trends are going the wrong direction for the cow-calf segment, like the last couple years, some producers changed their management strategies to maximize revenue. Results from CattleFax’s annual Cow-Calf Survey shows a slight uptick the past two years in the percentage of producers who weaned calves for 45 days or more, while the number of operations that sold right off the cow declined. The peak occurred in 2019, with 55% of the survey participants weaning for at least 45 days compared to 50% in 2018. The fall calf market averaged about $10/cwt lower in 2019 relative to 2018. A long weaning period also allows producers to take
26
FALL 2021
advantage of the seasonality of the calf market. About eight out of every 10 years, the calf market bottoms in October before gradually trending higher into the end of the year. In 2020, the low came the last week of October and gained roughly $15/ cwt by the first of December. That was one of the more extreme moves in recent years, as the 5-year average price improves about $8/cwt during that time. Nonetheless, the odds favor a better market later in the year. Even if producers are forced to wean early due to drought conditions or for any other reason, long weaning is still recommended. This strategy gives an operation more marketing flexibility as opposed to selling straight off the cow. Producers have more ability to choose when they want to sell calves and wait out a short, rough patch, in the market if necessary, assuming proper resources are available. Weaned calves are also more apt to capture the attention of buyers from several different marketing avenues – creating competition. Not only do stocker operators and backgrounders demand long weaned calves, but feedyards would much rather place one on feed that has been weaned. It all comes down to minimizing risk on purchases from a morbidity and mortality standpoint. With that said there are risks associated with implementing a weaning program. However, the risk level should be much lower for the producer who raises the calves. While it is not feasible for everyone, fence line weaning is a strategy used by some to significantly reduce stress early in the weaning process. If that procedure is not practical, there is oftentimes a lot less stress from transportation compared to shipping to a feedlot or backgrounding lot. Not only is the distance likely much shorter, but a more important component
