1. Cull Cow Management and Marketing Alternatives
Kellie Curry Raper
Livestock Marketing Economist
Agricultural Economics
June 27, 2017

2. A Revenue Source for Cow-Calf Operations
Cull cows are an asset with salvage value
15-30% of a cow-calf herd’s annual revenue
How do you maximize salvage value?
What factors should influence a producer’s cull cow management and marketing strategy?
Two approaches to increase value
Consider your cows as productive assets. At the end of their useful life in your operation, how can you maximize their salvage value? Revenue from culls is a significant component of annual revenue. Is it worth retaining cull cows in a feeding system for delayed marketing after culling them from your herd? The economist answer – it depends! We will look at some alternatives.
The other source of revenue for a cow calf operation is the commercial product – your calves. We will examine management practices that can impact the final value of your calves at marketing.
Increase value of product

3. Opportunity lies in the Seasonality…
Opportunities exist to increase revenue from cull cows through changes in marketing strategies. This figure shows that cull cow prices tend to bottom out in the fall when the majority of calves are weaned and culling decisions are made, then increase into early spring. By shifting the cull cow sale date from November to March-April, producers may realize about a 10% increase in sale price.
Data Source: USDA-AMS, Compiled & Analysis by LMIC
Livestock Marketing Information Center

4. A Multi-Dimensional Decision
Cull from herd?
Identify open cows
Negative impact on profit
Sell or retain for later sale?
Market conditions
Cow health
Body Condition Score
Facilities/Labor
Feed source & cost
Attempt breeding to later sell as bred?
Cow age
Bull availability

5. The Culling Decision Pregnancy status: Open Age Disposition
“An open cow to a producer is like an
empty well to a thirsty man"
Pregnancy status: Open
Consumes resources with no contribution to revenue
Openness may signal persistent infection
May spread VD in a natural service herd
Age
Disposition
Calving ease/difficulty
Structural soundness
Teeth? Udder? Lameness?
Other Health issues
Cancer eye, prolapse, Johne’s, PI

6. The Marketing Decision
Sell now? Retain and sell later?
Consider facilities, cow health, age, feed/input costs, expected marketing conditions
Sell Now
Lameness, teeth
Higher body condition scores
Retain and sell later
Healthy sound cows
Lower body condition scores

7. The Management Decision
Strategy 1
Feed to increase quality grade & value per pound
Strategy 2
Feed for moderate weight gain to increase pounds sold
Strategy 3
Feed for minimum maintenance and hit seasonal spring price upswing
Strategy 4
Retain with bull for possibility of selling as bred cows

8. Strategy 1: Feed to increase quality grade & value per pound
Most intensive – and expensive – management scenario
Most previous research focus is on revenue or final value rather than profitability
Feuz offers a good discussion of possible rations with cost and profit scenarios
Prices/costs are dated, but concepts are well illustrated
article=1073&context=extension_curall

9. Strategy 2 versus Strategy 3
Moderate gain versus minimum maintenance
Collaborative study with Noble Foundation
3 years of NF cull cows
2 systems
Low Input Drylot System
Start feeding rye hay with 10% crude protein in mid-October
Start feeding 25% crude protein cubes at ~ 5 lbs/day/head in December
Stockpiled native pasture
Hay and cubes only during icy periods

11. Feed Cost for Pasture versus Drylot Management Systems

12. Native Grass System: Change in Net Revenue from Culling to Marketing Period

13. Drylot System: Change in Net Revenue from Culling to Marketing Period

14. Feeding System and Body Condition Matter
Native Pasture System
Stockpiled native grass pasture (350 acres)
Hay and cubes only during icy periods
These charts show the difference in returns for cows with differing initial BCS. Top left is for the pasture system, bottom right for dry lot system.The right bar indicates the return for the cows labeled heavy at the start of the study.
Clearly, not much opportunity for increases in net returns for cows in good body condition when calves are weaned regardless of system or length of holding period.
Cull cows placed on winter pasture and marketed in late winter or early spring months can return up to $60 per head more than an October sale (Amadou, Raper, Biermacher, Cook, & Ward, 2014). Highest returns were reported for cows that were thin to medium body condition score (BCS) in early fall (thin = BCS <5; medium = BCS 5-6) placed on native grass for days. Retaining culls cows with BCS > 6 was typically not profitable
Drylot System
Rye hay with 10% crude protein in mid-October
25% crude protein cubes at ~ 5 lbs/day/head in December

15. Strategy 4: Bred vs. Slaughter, Native Grass System

16. Strategy 4: Bred vs. Slaughter, Drylot System

17. Preferred System and Feeding Length
Year to year decision – not automatic
Re-evaluate your resources and market conditions
Get rid of your big ones…
Heavy, higher BCS cows not profitable for retention
Find an inexpensive way to feed the rest
Little difference in returns between thin & medium
Native Grass more profitable than low-cost drylot
days on native grass = highest returns
Potential to breed back at least some of them
Market as bred -Potential replacements for fall calving herds or year-round herds
Bull has to eat regardless of where you keep him…
Remember that market conditions change. That means that retaining cull cows is a year to year decision based on (1) your own resources such as stockpiled forage, (2) projected feed costs if necessary, and (3) the current and expected market for slaughter cows.
Cows with higher body condition scores require too much feed resources to maintain weight. Our recommendation is to sell those animals at culling.
For those in low to moderate body condition, assess your resources. Feeding days with a relatively inexpensive feed source can be profitable.
Consider attempting to breed back some of them if you have resources to keep them separate from the rest of the herd. They can then be sold as bred or pairs - to fall calving herds or year-round calving herds, for example.

18. Resources: Cull Cows
Kellie Curry Raper and Jon T. Biermacher. “Cull Cow Management and Marketing Alternatives.” Oklahoma Cooperative Extension Service Fact Sheet AGEC-629, December web.pdf
Kellie Curry Raper, Jon T. Biermacher, and Zakou Amadou. “Marketing Cull Beef Cows: Does Body Condition Score Matter?” Oklahoma Cooperative Extension Service Fact Sheet AGEC 627, March web.pdf
Derrell S. Peel and Damona Doye. “Cull Cow Grazing and Marketing Opportunities.” Oklahoma Cooperative Extension Service Fact Sheet AGEC 613, May web.pdf

19. Thank you!
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